Rivian Automotive (NASDAQ:RIVN) Stock Price Down 2% After Insider Selling

Key Points

• Rivian Automotive's stock dropped 2% after CEO Robert J. Scaringe sold 17,450 shares, decreasing his ownership by 1.31% to approximately 1.3 million shares.
• Analysts' ratings for Rivian show a consensus of "Hold" with a target price of $13.67, driven by recent downgrades from several firms.
• The company's quarterly earnings report indicated a larger loss than expected, with a net margin of -68.06% and negative return on equity.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) traded down 2% on Friday following insider selling activity. The company traded as low as $14.02 and last traded at $14.38. 68,502,717 shares were traded during mid-day trading, an increase of 92% from the average session volume of 35,602,465 shares. The stock had previously closed at $14.68.

Specifically, CEO Robert J. Scaringe sold 17,450 shares of the company's stock in a transaction on Tuesday, September 16th. The stock was sold at an average price of $14.00, for a total transaction of $244,300.00. Following the sale, the chief executive officer owned 1,316,205 shares of the company's stock, valued at approximately $18,426,870. This represents a 1.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website.

Wall Street Analysts Forecast Growth

RIVN has been the topic of several research analyst reports. Stifel Nicolaus cut their price target on shares of Rivian Automotive from $18.00 to $16.00 and set a "buy" rating on the stock in a research note on Friday, August 8th. UBS Group cut their target price on Rivian Automotive from $13.00 to $12.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Guggenheim cut shares of Rivian Automotive from a "buy" rating to a "neutral" rating in a research note on Monday, July 14th. Wedbush reduced their target price on Rivian Automotive from $18.00 to $16.00 and set an "outperform" rating for the company in a report on Wednesday, August 6th. Finally, Morgan Stanley cut their price target on Rivian Automotive from $13.00 to $12.00 and set an "equal weight" rating for the company in a report on Wednesday, August 13th. Five research analysts have rated the stock with a Buy rating, sixteen have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $13.67.

Rivian Automotive Price Performance

The business's 50 day moving average is $13.17 and its two-hundred day moving average is $13.11. The company has a debt-to-equity ratio of 0.73, a current ratio of 3.44 and a quick ratio of 2.72. The firm has a market capitalization of $17.45 billion, a PE ratio of -4.45 and a beta of 1.81.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its earnings results on Tuesday, August 5th. The electric vehicle automaker reported ($0.97) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.65) by ($0.32). The firm had revenue of $1.30 billion during the quarter, compared to analysts' expectations of $1.27 billion. Rivian Automotive had a negative return on equity of 58.07% and a negative net margin of 68.06%.The firm's quarterly revenue was up 12.5% on a year-over-year basis. During the same period last year, the firm posted ($1.46) earnings per share. As a group, research analysts anticipate that Rivian Automotive, Inc. will post -3.2 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Norges Bank purchased a new position in Rivian Automotive in the second quarter valued at $105,629,000. Vanguard Group Inc. boosted its position in shares of Rivian Automotive by 7.8% during the first quarter. Vanguard Group Inc. now owns 77,092,693 shares of the electric vehicle automaker's stock worth $959,804,000 after buying an additional 5,610,688 shares during the period. Nuveen LLC purchased a new position in shares of Rivian Automotive in the first quarter valued at approximately $33,582,000. AQR Capital Management LLC boosted its position in Rivian Automotive by 496.6% in the 2nd quarter. AQR Capital Management LLC now owns 2,305,236 shares of the electric vehicle automaker's stock valued at $31,490,000 after buying an additional 1,918,852 shares during the period. Finally, Worldquant Millennium Advisors LLC boosted its stake in shares of Rivian Automotive by 1,353.6% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 2,058,284 shares of the electric vehicle automaker's stock valued at $28,281,000 after buying an additional 1,916,686 shares during the period. Hedge funds and other institutional investors own 66.25% of the company's stock.

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.