Rivian Automotive (NASDAQ:RIVN) Shares Down 2.1% Following Analyst Downgrade

Key Points

• Rivian Automotive's shares fell by 2.1% after Morgan Stanley downgraded the stock and lowered its price target from $13.00 to $12.00.
• The electric vehicle manufacturer reported a quarterly earnings miss with a loss of ($0.97) per share, compared to an expected ($0.65), but generated $1.30 billion in revenue.
• Despite recent downgrades, several analysts maintain an average rating of "Hold" on Rivian Automotive, with a consensus price target of $13.69.

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) traded down 2.1% during mid-day trading on Thursday after Morgan Stanley lowered their price target on the stock from $13.00 to $12.00. Morgan Stanley currently has an equal weight rating on the stock. Rivian Automotive traded as low as $11.79 and last traded at $12.03. 8,632,376 shares were traded during trading, a decline of 74% from the average session volume of 32,846,227 shares. The stock had previously closed at $12.28.

Several other research analysts have also recently issued reports on the company. Piper Sandler increased their price target on Rivian Automotive from $13.00 to $15.00 and gave the stock a "neutral" rating in a research note on Thursday, May 22nd. Wall Street Zen downgraded Rivian Automotive from a "hold" rating to a "sell" rating in a research note on Saturday, July 26th. Needham & Company LLC cut their price objective on shares of Rivian Automotive from $16.00 to $14.00 and set a "buy" rating on the stock in a research report on Wednesday, August 6th. Stifel Nicolaus lowered their price objective on Rivian Automotive from $18.00 to $16.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Finally, Robert W. Baird lowered their target price on Rivian Automotive from $16.00 to $14.00 and set a "neutral" rating on the stock in a report on Tuesday, April 15th. Four analysts have rated the stock with a sell rating, eighteen have assigned a hold rating and five have issued a buy rating to the stock. According to MarketBeat.com, Rivian Automotive has an average rating of "Hold" and a consensus price target of $13.69.

Insider Activity

In related news, CEO Robert J. Scaringe sold 71,428 shares of the business's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $15.36, for a total transaction of $1,097,134.08. Following the transaction, the chief executive officer owned 1,483,111 shares in the company, valued at $22,780,584.96. The trade was a 4.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Claire Mcdonough sold 17,185 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $15.39, for a total value of $264,477.15. Following the completion of the sale, the chief financial officer directly owned 824,875 shares in the company, valued at approximately $12,694,826.25. The trade was a 2.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 2.16% of the company's stock.

Hedge Funds Weigh In On Rivian Automotive

Several large investors have recently made changes to their positions in the business. PFS Partners LLC grew its position in Rivian Automotive by 1,882.0% in the first quarter. PFS Partners LLC now owns 1,982 shares of the electric vehicle automaker's stock worth $25,000 after acquiring an additional 1,882 shares in the last quarter. Assetmark Inc. raised its stake in Rivian Automotive by 315.6% in the second quarter. Assetmark Inc. now owns 1,787 shares of the electric vehicle automaker's stock worth $25,000 after buying an additional 1,357 shares in the last quarter. Banque Transatlantique SA raised its stake in Rivian Automotive by 13,194.1% in the first quarter. Banque Transatlantique SA now owns 2,260 shares of the electric vehicle automaker's stock worth $26,000 after buying an additional 2,243 shares in the last quarter. Fairman Group LLC acquired a new stake in Rivian Automotive in the 2nd quarter worth approximately $31,000. Finally, Orion Capital Management LLC acquired a new stake in shares of Rivian Automotive during the fourth quarter worth about $34,000. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

Rivian Automotive Stock Performance

The firm's 50 day simple moving average is $13.24 and its 200 day simple moving average is $12.95. The firm has a market capitalization of $13.60 billion, a price-to-earnings ratio of -3.72 and a beta of 1.80. The company has a debt-to-equity ratio of 0.73, a quick ratio of 2.72 and a current ratio of 3.44.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The electric vehicle automaker reported ($0.97) earnings per share for the quarter, missing analysts' consensus estimates of ($0.65) by ($0.32). Rivian Automotive had a negative return on equity of 58.07% and a negative net margin of 68.06%. The company had revenue of $1.30 billion for the quarter, compared to analyst estimates of $1.27 billion. During the same period last year, the firm posted ($1.46) EPS. The business's quarterly revenue was up 12.5% on a year-over-year basis. Sell-side analysts forecast that Rivian Automotive, Inc. will post -3.2 earnings per share for the current fiscal year.

Rivian Automotive Company Profile

Rivian Automotive, Inc, together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name.

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