Rivian Automotive (NASDAQ:RIVN) Trading 4% Higher - Should You Buy?

Key Points

• Rivian shares rose 4% to $16.48 on elevated trading volume, with the stock trading near its 50-day and 200-day moving averages.
• Analyst sentiment remains mixed: Rivian has an overall “Hold” rating and a consensus price target of $18.95, despite recent target increases from BNP Paribas Exane and Jefferies.
• The company’s latest quarter beat estimates, reporting $1.38 billion in revenue and an adjusted loss of $0.55 per share, but it continues to post substantial negative margins and analysts expect a full-year loss.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shot up 4% on Monday . The stock traded as high as $16.79 and last traded at $16.48. Approximately 34,975,083 shares traded hands during trading, an increase of 10% from the average daily volume of 31,786,395 shares. The stock had previously closed at $15.84.

Analyst Ratings Changes

Several research firms recently weighed in on RIVN. BNP Paribas Exane increased their price target on Rivian Automotive from $22.00 to $24.00 and gave the company an "outperform" rating in a report on Wednesday, July 8th. Wall Street Zen raised shares of Rivian Automotive from a "strong sell" rating to a "sell" rating in a research note on Sunday, May 10th. Jefferies Financial Group boosted their price objective on shares of Rivian Automotive from $16.00 to $17.00 and gave the company a "hold" rating in a research report on Tuesday, July 7th. TD Cowen reiterated a "buy" rating and set a $20.00 price objective on shares of Rivian Automotive in a research report on Wednesday, June 3rd. Finally, Morgan Stanley increased their target price on shares of Rivian Automotive from $12.00 to $13.00 and gave the company an "underweight" rating in a research note on Tuesday, July 14th. Thirteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and six have given a Sell rating to the company's stock. According to MarketBeat, Rivian Automotive presently has an average rating of "Hold" and a consensus target price of $18.95.

Rivian Automotive Stock Performance

The stock has a market cap of $22.43 billion, a P/E ratio of -5.64 and a beta of 1.60. The business has a 50 day moving average price of $16.32 and a 200 day moving average price of $15.98. The company has a quick ratio of 1.64, a current ratio of 2.10 and a debt-to-equity ratio of 1.00.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The electric vehicle automaker reported ($0.55) earnings per share for the quarter, topping the consensus estimate of ($0.60) by $0.05. Rivian Automotive had a negative return on equity of 75.65% and a negative net margin of 63.62%.The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same period in the prior year, the business posted ($0.48) earnings per share. The company's revenue for the quarter was up 11.4% on a year-over-year basis. As a group, sell-side analysts expect that Rivian Automotive, Inc. will post -3.06 EPS for the current year.

Insiders Place Their Bets

In other news, CEO Robert J. Scaringe sold 34,818 shares of the business's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $15.00, for a total transaction of $522,270.00. Following the completion of the sale, the chief executive officer directly owned 922,286 shares of the company's stock, valued at approximately $13,834,290. The trade was a 3.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 8,023 shares of the company's stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $16.00, for a total transaction of $128,368.00. Following the completion of the transaction, the chief financial officer owned 887,007 shares in the company, valued at approximately $14,192,112. The trade was a 0.90% 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. Insiders have sold a total of 68,385 shares of company stock worth $1,125,094 over the last quarter. Company insiders own 1.48% of the company's stock.

Institutional Investors Weigh In On Rivian Automotive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Newbridge Financial Services Group Inc. grew its stake in Rivian Automotive by 113.6% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker's stock worth $26,000 after acquiring an additional 1,000 shares in the last quarter. Core Wealth Advisors LLC purchased a new position in shares of Rivian Automotive during the fourth quarter worth approximately $27,000. SOA Wealth Advisors LLC. raised its stake 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 acquiring an additional 1,395 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Rivian Automotive during the third quarter valued at approximately $31,000. Finally, Zions Bancorporation National Association UT bought a new stake in shares of Rivian Automotive during the fourth quarter valued at approximately $33,000. Institutional investors own 66.25% of the company's stock.

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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