Rivian Automotive (NASDAQ:RIVN) Shares Down 3% - Here's What Happened

Key Points

• Shares were down 3% on Tuesday, trading as low as $15.12 and last at $15.27 on volume of ~20.8M shares (about 31% below the average session volume).
• Analyst sentiment is mixed—8 Buys, 9 Holds and 8 Sells—leaving an average rating of "Hold" and an average price target of $16.23.
• Rivian beat estimates for the quarter (EPS of -$0.65 vs. -$0.71 and revenue of $1.56B, up 78.3% YoY) but remains unprofitable with a negative net margin of 61.34%, and insiders have been selling shares (CEO sold 52,350 shares).

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s share price traded down 3% during trading on Tuesday . The stock traded as low as $15.12 and last traded at $15.27. 20,834,582 shares were traded during trading, a decline of 31% from the average session volume of 30,347,533 shares. The stock had previously closed at $15.75.

Analysts Set New Price Targets

Several research analysts recently commented on the stock. Evercore ISI reiterated an "outperform" rating on shares of Rivian Automotive in a research note on Monday, December 15th. Weiss Ratings reissued a "sell (d-)" rating on shares of Rivian Automotive in a report on Thursday, January 22nd. UBS Group reaffirmed a "sell" rating and set a $15.00 target price (up from $13.00) on shares of Rivian Automotive in a report on Wednesday, January 14th. Needham & Company LLC boosted their price objective on Rivian Automotive from $14.00 to $23.00 and gave the company a "buy" rating in a research report on Friday, December 12th. Finally, Tigress Financial boosted their price objective on Rivian Automotive from $21.00 to $25.00 and gave the stock a "buy" rating in a research note on Friday, November 14th. Eight investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and eight have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average price target of $16.23.

Rivian Automotive Stock Performance

The firm's fifty day moving average price is $18.03 and its 200-day moving average price is $15.19. The company has a current ratio of 2.71, a quick ratio of 2.23 and a debt-to-equity ratio of 0.87. The firm has a market cap of $18.72 billion, a price-to-earnings ratio of -4.91 and a beta of 1.77.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings data on Tuesday, November 4th. The electric vehicle automaker reported ($0.65) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.71) by $0.06. The company had revenue of $1.56 billion for the quarter, compared to the consensus estimate of $1.27 billion. Rivian Automotive had a negative net margin of 61.34% and a negative return on equity of 57.33%. Rivian Automotive's revenue for the quarter was up 78.3% on a year-over-year basis. During the same period last year, the firm posted ($1.08) EPS. Analysts expect that Rivian Automotive, Inc. will post -3.2 earnings per share for the current year.

Insider Activity at Rivian Automotive

In related news, CEO Robert J. Scaringe sold 52,350 shares of the company's stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $16.60, for a total transaction of $869,010.00. Following the completion of the transaction, the chief executive officer owned 1,246,405 shares of the company's stock, valued at approximately $20,690,323. This represents a 4.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Peter Krawiec sold 3,655 shares of the firm's stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $19.45, for a total transaction of $71,089.75. Following the completion of the transaction, the director owned 29,122 shares in the company, valued at $566,422.90. The trade was a 11.15% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 172,504 shares of company stock valued at $3,012,734. 2.16% of the stock is owned by insiders.

Institutional Trading of Rivian Automotive

Large investors have recently modified their holdings of the business. Charles Schwab Investment Management Inc. grew its holdings in shares of Rivian Automotive by 15.8% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 5,849,818 shares of the electric vehicle automaker's stock worth $80,376,000 after acquiring an additional 799,030 shares during the last quarter. XTX Topco Ltd bought a new stake in Rivian Automotive in the second quarter worth $1,324,000. Farther Finance Advisors LLC grew its holdings in Rivian Automotive by 227.0% during the third quarter. Farther Finance Advisors LLC now owns 117,096 shares of the electric vehicle automaker's stock valued at $1,719,000 after purchasing an additional 81,291 shares during the last quarter. Y Intercept Hong Kong Ltd increased its stake in shares of Rivian Automotive by 244.1% in the third quarter. Y Intercept Hong Kong Ltd now owns 1,624,707 shares of the electric vehicle automaker's stock worth $23,851,000 after purchasing an additional 1,152,551 shares during the period. Finally, Tableaux LLC bought a new position in Rivian Automotive during the second quarter worth $3,435,000. 66.25% of the stock is currently owned by institutional investors and hedge funds.

Rivian Automotive Company Profile

Rivian Automotive, Inc is an American automotive technology company specializing in the design, development and manufacture of electric vehicles. The company is best known for its all-electric R1 platform, which underpins the R1T pickup truck and R1S sport utility vehicle. In addition to consumer products, Rivian has secured a significant commercial contract to produce electric delivery vans for a leading e-commerce provider, underscoring its capability to serve both retail and fleet customers.

Founded in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, Rivian has grown from a research-focused startup into a publicly traded corporation.

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