Rivian Automotive (NASDAQ:RIVN) Trading 8.8% Higher on Analyst Upgrade

Key Points

• Rivian shares jumped 8.8% after UBS Group raised its price target from $16 to $17, while keeping a neutral rating. The stock traded as high as $18.23 on heavy volume, far above its prior close of $16.66.
• Other analysts have also been adjusting their views: BNP Paribas Exane lifted its target to $24 and kept an outperform rating, while the overall consensus remains Hold with an average price target of $18.81.
• Investor attention is being weighed by Rivian’s 75 million-share offering, which raised about $1.2 billion to support growth and the R2 launch but also increases dilution risk for existing shareholders.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shares traded up 8.8% during trading on Thursday after UBS Group raised their price target on the stock from $16.00 to $17.00. UBS Group currently has a neutral rating on the stock. Rivian Automotive traded as high as $18.23 and last traded at $18.12. 83,707,487 shares were traded during mid-day trading, an increase of 162% from the average session volume of 31,892,623 shares. The stock had previously closed at $16.66.

Other equities analysts also recently issued research reports about the company. DA Davidson lifted their price objective on Rivian Automotive from $14.00 to $15.00 and gave the company a "neutral" rating in a research report on Monday, May 11th. Benchmark restated a "buy" rating and set a $25.00 target price on shares of Rivian Automotive in a report on Friday, May 1st. TD Cowen restated a "buy" rating and issued a $20.00 target price on shares of Rivian Automotive in a research note on Wednesday, June 3rd. Wall Street Zen raised Rivian Automotive from a "strong sell" rating to a "sell" rating in a report on Sunday, May 10th. Finally, Tigress Financial reiterated a "buy" rating and set a $25.00 price target on shares of Rivian Automotive in a research report on Friday, April 10th. Twelve analysts have rated the stock with a Buy rating, nine have issued a Hold rating and six have assigned a Sell rating to the company. According to MarketBeat.com, Rivian Automotive currently has an average rating of "Hold" and an average price target of $18.81.

Insiders Place Their Bets

In other Rivian Automotive news, CFO Claire Mcdonough sold 10,245 shares of the stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $18.00, for a total value of $184,410.00. Following the transaction, the chief financial officer directly owned 946,814 shares in the company, valued at approximately $17,042,652. This trade represents a 1.07% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert J. Scaringe sold 34,818 shares of Rivian Automotive stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $15.00, for a total value 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 $13,834,290. This trade represents a 3.64% 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. In the last quarter, insiders have sold 100,076 shares of company stock valued at $1,656,286. 1.48% of the stock is currently owned by corporate insiders.

Rivian Automotive News Summary

Here are the key news stories impacting Rivian Automotive this week:

• Positive Sentiment: BNP Paribas Exane raised its price target on Rivian to $24 from $22 and kept an outperform rating, signaling confidence that the stock still has meaningful upside.
• Positive Sentiment: Rivian recently broke above its 20-day moving average, which technical traders often view as a short-term bullish signal and a sign the stock may be stabilizing after the recent drop.
• Neutral Sentiment: Rivian completed pricing for a 75 million-share offering at $15.50 per share, raising about $1.2 billion in gross proceeds. The capital should help fund manufacturing scale-up, debt-related needs, and the R2 launch, but it also adds dilution for existing shareholders. Rivian Automotive, Inc. Announces Pricing of Underwritten Public Offering of Common Stock
• Neutral Sentiment: Rivian’s director Karen Boone sold 20,000 shares in a pre-arranged 10b5-1 plan, which is not usually a strong negative signal by itself, but it may add to investor caution. Rivian Automotive NASDAQ: RIVN Director Karen Boone Sells 20,000 Shares of Stock
• Negative Sentiment: The biggest headwind is dilution risk from the new equity sale, which has prompted concern that Rivian still needs outside capital to support growth and cover ongoing cash burn.

Institutional Trading of Rivian Automotive

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Parallel Advisors LLC lifted its position in Rivian Automotive by 4.0% during the 1st quarter. Parallel Advisors LLC now owns 16,056 shares of the electric vehicle automaker's stock valued at $242,000 after purchasing an additional 613 shares during the period. Illinois Municipal Retirement Fund grew its position in shares of Rivian Automotive by 1.6% during the 4th quarter. Illinois Municipal Retirement Fund now owns 43,282 shares of the electric vehicle automaker's stock worth $853,000 after buying an additional 686 shares during the period. Merit Financial Group LLC raised its stake in shares of Rivian Automotive by 3.2% during the fourth quarter. Merit Financial Group LLC now owns 23,127 shares of the electric vehicle automaker's stock worth $456,000 after buying an additional 718 shares during the last quarter. Geneos Wealth Management Inc. raised its stake in shares of Rivian Automotive by 36.5% during the fourth quarter. Geneos Wealth Management Inc. now owns 2,764 shares of the electric vehicle automaker's stock worth $54,000 after buying an additional 739 shares during the last quarter. Finally, Utah Retirement Systems lifted its holdings in Rivian Automotive by 0.6% in the fourth quarter. Utah Retirement Systems now owns 128,500 shares of the electric vehicle automaker's stock valued at $2,533,000 after buying an additional 744 shares during the period. 66.25% of the stock is currently owned by institutional investors and hedge funds.

Rivian Automotive Price Performance

The firm has a market capitalization of $22.49 billion, a price-to-earnings ratio of -6.21 and a beta of 1.60. The company has a quick ratio of 1.64, a current ratio of 2.10 and a debt-to-equity ratio of 1.00. The company's fifty day moving average is $15.71 and its two-hundred day moving average is $16.26.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last released its earnings results on Thursday, April 30th. The electric vehicle automaker reported ($0.55) EPS for the quarter, topping analysts' consensus estimates of ($0.60) by $0.05. The firm had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.37 billion. Rivian Automotive had a negative net margin of 63.62% and a negative return on equity of 75.65%. The business's quarterly revenue was up 11.4% compared to the same quarter last year. During the same quarter in the previous year, the business earned ($0.48) EPS. Equities research analysts anticipate that Rivian Automotive, Inc. will post -3.09 earnings per share for the current fiscal year.

About Rivian Automotive

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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