Rivian Automotive (NASDAQ:RIVN) Stock Price Up 1.2% - Here's Why

Key Points

• Rivian stock rose 1.2% to $16.72 on Monday with mid-day volume of ~20.9M shares (down 28% vs. average), and Wall Street maintains a consensus "Hold" rating with an average price target of $18.05.
• Quarterly results beat estimates but show weakness: Rivian reported EPS of -$0.54 (vs. -$0.68 expected) and $1.29B in revenue (slightly above estimates), yet revenue fell 25.8% year-over-year and the company remains unprofitable with steep negative margins and a FY EPS forecast of -3.04.
• Insiders have been selling: CEO Robert Scaringe and CFO Claire Mcdonough sold shares under prearranged Rule 10b5-1 plans; insiders sold ~148,888 shares (~$2.41M) over the last quarter, leaving insiders with about 2.16% ownership.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price rose 1.2% on Monday . The company traded as high as $17.00 and last traded at $16.72. Approximately 20,879,489 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 29,191,051 shares. The stock had previously closed at $16.52.

Wall Street Analyst Weigh In

RIVN has been the topic of a number of research analyst reports. Benchmark reissued a "buy" rating on shares of Rivian Automotive in a report on Thursday, March 12th. Canaccord Genuity Group restated a "buy" rating and issued a $22.00 price objective on shares of Rivian Automotive in a research note on Monday, April 6th. DA Davidson upgraded Rivian Automotive from an "underperform" rating to a "neutral" rating and set a $14.00 price objective on the stock in a research note on Wednesday, April 1st. Wall Street Zen upgraded Rivian Automotive from a "strong sell" rating to a "sell" rating in a research note on Saturday, April 18th. Finally, Cantor Fitzgerald restated a "neutral" rating on shares of Rivian Automotive in a research note on Monday, February 9th. Eleven analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and six have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $18.05.

Rivian Automotive Stock Up 1.2%

The stock has a 50 day moving average of $15.72 and a 200-day moving average of $16.13. The firm has a market capitalization of $20.75 billion, a P/E ratio of -5.45 and a beta of 1.69. The company has a debt-to-equity ratio of 0.97, a quick ratio of 1.89 and a current ratio of 2.33.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The electric vehicle automaker reported ($0.54) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.68) by $0.14. Rivian Automotive had a negative return on equity of 65.05% and a negative net margin of 67.68%.The business had revenue of $1.29 billion for the quarter, compared to analysts' expectations of $1.27 billion. During the same period in the previous year, the business posted ($0.70) EPS. The firm's quarterly revenue was down 25.8% compared to the same quarter last year. Research analysts predict that Rivian Automotive, Inc. will post -3.04 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Robert J. Scaringe sold 21,446 shares of the company's stock in a transaction dated Tuesday, April 14th. The stock was sold at an average price of $16.17, for a total transaction of $346,781.82. Following the sale, the chief executive officer directly owned 1,001,138 shares in the company, valued at $16,188,401.46. This represents a 2.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 10,245 shares of the company's stock in a transaction dated Wednesday, April 22nd. The shares were sold at an average price of $18.00, for a total value of $184,410.00. Following the sale, the chief financial officer owned 946,814 shares in the company, valued at approximately $17,042,652. This represents a 1.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 148,888 shares of company stock worth $2,411,276. Company insiders own 2.16% of the company's stock.

Institutional Investors Weigh In On Rivian Automotive

Hedge funds and other institutional investors have recently modified their holdings of the stock. Core Wealth Advisors LLC bought a new stake in shares of Rivian Automotive during the fourth quarter valued at about $27,000. SOA Wealth Advisors LLC. increased its position in shares of Rivian Automotive by 894.2% during the fourth quarter. SOA Wealth Advisors LLC. now owns 1,551 shares of the electric vehicle automaker's stock valued at $31,000 after buying an additional 1,395 shares during the period. Zions Bancorporation National Association UT bought a new stake in shares of Rivian Automotive during the fourth quarter valued at about $33,000. Glass Jacobson Investment Advisors llc increased its position in shares of Rivian Automotive by 96.3% during the fourth quarter. Glass Jacobson Investment Advisors llc now owns 1,737 shares of the electric vehicle automaker's stock valued at $34,000 after buying an additional 852 shares during the period. Finally, Newbridge Financial Services Group Inc. increased its position in shares of Rivian Automotive by 113.6% during the second quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker's stock valued at $26,000 after buying an additional 1,000 shares during the period. 66.25% of the stock is currently owned by institutional investors.

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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