Rivian Automotive (NASDAQ:RIVN) Stock Price Down 1.8% - Should You Sell?

Key Points

• Rivian shares fell 1.8% to about $16.92 on Monday on below-average volume, giving the company a market cap near $21 billion.
• The company beat Q4 estimates with EPS of ($0.54) and revenue of $1.29B, but revenue was down 25.8% YoY and Rivian remains unprofitable with a ~-67.7% net margin.
• Analysts' consensus is a "Hold" with an average price target of $18.05 after mixed upgrades/downgrades; insiders have recently sold shares while institutional investors own about 66% of the stock.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s share price was down 1.8% on Monday . The stock traded as low as $16.76 and last traded at $16.92. Approximately 18,734,013 shares changed hands during trading, a decline of 37% from the average daily volume of 29,577,672 shares. The stock had previously closed at $17.23.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on RIVN. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rivian Automotive in a research note on Thursday, January 22nd. UBS Group upgraded Rivian Automotive from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $15.00 to $16.00 in a research note on Friday, February 13th. DA Davidson upgraded Rivian Automotive from an "underperform" rating to a "neutral" rating and set a $14.00 price target on the stock in a research note on Wednesday, April 1st. Cantor Fitzgerald reiterated a "neutral" rating on shares of Rivian Automotive in a report on Monday, February 9th. Finally, Wolfe Research cut shares of Rivian Automotive from a "peer perform" rating to an "underperform" rating in a research note on Monday, January 12th. Eleven analysts have rated the stock with a Buy rating, nine have given a Hold rating and six have assigned a Sell rating to the stock. According to data from MarketBeat.com, Rivian Automotive has an average rating of "Hold" and an average price target of $18.05.

Rivian Automotive Trading Down 1.8%

The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.89 and a current ratio of 2.33. The business has a fifty day simple moving average of $15.54 and a 200 day simple moving average of $16.00. The stock has a market capitalization of $21.00 billion, a price-to-earnings ratio of -5.51 and a beta of 1.69.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last posted its earnings results on Thursday, February 12th. The electric vehicle automaker reported ($0.54) earnings per share for the quarter, topping analysts' consensus estimates of ($0.68) by $0.14. The company had revenue of $1.29 billion during the quarter, compared to the consensus estimate of $1.27 billion. Rivian Automotive had a negative return on equity of 65.05% and a negative net margin of 67.68%.The company's revenue was down 25.8% on a year-over-year basis. During the same quarter last year, the firm earned ($0.70) earnings per share. As a group, research analysts expect that Rivian Automotive, Inc. will post -3.04 EPS for the current year.

Insider Transactions at Rivian Automotive

In other Rivian Automotive news, CFO Claire Mcdonough sold 27,133 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $16.80, for a total transaction of $455,834.40. Following the transaction, the chief financial officer owned 680,836 shares in the company, valued at $11,438,044.80. This represents a 3.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Robert J. Scaringe sold 21,446 shares of Rivian Automotive stock in a transaction that occurred on Tuesday, April 14th. The shares were sold at an average price of $16.17, for a total transaction of $346,781.82. Following the completion of the sale, the chief executive officer owned 1,001,138 shares of the company's stock, valued at approximately $16,188,401.46. The trade was a 2.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 156,093 shares of company stock valued at $2,506,590 in the last three months. Insiders own 2.16% of the company's stock.

Institutional Trading of Rivian Automotive

Large investors have recently modified their holdings of the stock. Norges Bank bought a new position in Rivian Automotive in the 4th quarter valued at about $220,323,000. Renaissance Technologies LLC lifted its holdings in shares of Rivian Automotive by 32.4% during the 4th quarter. Renaissance Technologies LLC now owns 16,397,496 shares of the electric vehicle automaker's stock worth $323,195,000 after acquiring an additional 4,012,386 shares during the period. Vanguard Group Inc. boosted its position in shares of Rivian Automotive by 3.3% during the 3rd quarter. Vanguard Group Inc. now owns 81,673,512 shares of the electric vehicle automaker's stock worth $1,198,967,000 after acquiring an additional 2,597,310 shares in the last quarter. Capital International Investors increased its stake in Rivian Automotive by 13.2% in the fourth quarter. Capital International Investors now owns 20,769,844 shares of the electric vehicle automaker's stock valued at $409,374,000 after acquiring an additional 2,418,717 shares during the last quarter. Finally, AQR Capital Management LLC raised its position in Rivian Automotive by 496.6% during the second quarter. AQR Capital Management LLC now owns 2,305,236 shares of the electric vehicle automaker's stock valued at $31,490,000 after purchasing an additional 1,918,852 shares in the last quarter. 66.25% of the stock is 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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