Rivian Automotive (NASDAQ:RIVN) Stock Price Down 3.1% - Should You Sell?

Key Points

• Rivian Automotive's stock price declined by **3.1%** to a last trading price of **$12.47**, with trading volume significantly lower than average, at approximately **10.8 million shares**.
• A number of analysts have updated their **price targets** for Rivian, with Mizuho raising theirs to **$13.00** and Stifel Nicolaus to **$18.00**, while Guggenheim downgraded the stock to a "neutral" rating.
• Rivian's most recent earnings report showed a **net revenue** of **$1.24 billion**, surpassing expectations, with the company reporting an **EPS** of **($0.57)**, which was better than the predicted **($0.80)**.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shares dropped 3.1% during mid-day trading on Friday . The stock traded as low as $12.32 and last traded at $12.47. Approximately 10,809,258 shares changed hands during trading, a decline of 66% from the average daily volume of 32,225,674 shares. The stock had previously closed at $12.87.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on RIVN shares. Mizuho raised their target price on shares of Rivian Automotive from $11.00 to $13.00 and gave the stock a "neutral" rating in a research report on Friday, May 16th. Stifel Nicolaus upped their price objective on Rivian Automotive from $16.00 to $18.00 and gave the company a "buy" rating in a report on Monday, May 12th. UBS Group upped their target price on Rivian Automotive from $12.00 to $13.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 7th. Guggenheim lowered Rivian Automotive from a "buy" rating to a "neutral" rating in a report on Monday, July 14th. Finally, Wells Fargo & Company cut their target price on Rivian Automotive from $14.00 to $13.00 and set an "equal weight" rating for the company in a research report on Wednesday, May 7th. Four analysts have rated the stock with a sell rating, eighteen have given a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $14.38.

Rivian Automotive Stock Performance

The stock has a market capitalization of $13.99 billion, a price-to-earnings ratio of -3.32 and a beta of 1.81. The stock's 50 day moving average is $13.75 and its 200 day moving average is $13.04. The company has a current ratio of 3.73, a quick ratio of 2.80 and a debt-to-equity ratio of 0.71.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings data on Tuesday, May 6th. The electric vehicle automaker reported ($0.57) EPS for the quarter, beating analysts' consensus estimates of ($0.80) by $0.23. Rivian Automotive had a negative net margin of 76.83% and a negative return on equity of 60.64%. The firm had revenue of $1.24 billion for the quarter, compared to analysts' expectations of $981.52 million. During the same period in the prior year, the company earned ($1.48) EPS. The firm's revenue was up 3.0% on a year-over-year basis. On average, analysts predict that Rivian Automotive, Inc. will post -3.2 earnings per share for the current year.

Insider Activity

In other news, CEO Robert J. Scaringe sold 107,144 shares of the stock in a transaction dated Thursday, May 15th. The shares were sold at an average price of $15.25, for a total transaction of $1,633,946.00. Following the transaction, the chief executive officer directly owned 1,483,111 shares in the company, valued at $22,617,442.75. This represents a 6.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Claire Mcdonough sold 17,185 shares of the stock in a transaction dated Friday, May 16th. The stock was sold at an average price of $15.39, for a total transaction of $264,477.15. Following the transaction, the chief financial officer 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. Over the last quarter, insiders have sold 205,694 shares of company stock worth $3,144,612. Insiders own 2.16% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of RIVN. PFS Partners LLC raised its holdings 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 valued at $25,000 after buying an additional 1,882 shares during the period. Banque Transatlantique SA raised its holdings 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 valued at $26,000 after buying an additional 2,243 shares during the period. Fairman Group LLC purchased a new position in Rivian Automotive in the second quarter valued at approximately $31,000. Orion Capital Management LLC purchased a new position in Rivian Automotive in the fourth quarter valued at approximately $34,000. Finally, WPG Advisers LLC purchased a new stake in shares of Rivian Automotive during the first quarter valued at approximately $34,000. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

About Rivian Automotive

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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