Rivian Automotive (NASDAQ:RIVN) Trading Down 3.3% - Here's What Happened

Key Points

• Rivian shares fell 3.3% on Wednesday, trading as low as $16.99 and ending near $17.18 on lighter-than-average volume.
• Recent analyst updates were mixed, with several firms maintaining or adjusting targets; the stock currently carries a consensus rating of Hold and an average price target of $18.86.
• Rivian’s latest earnings showed better-than-expected loss and revenue results, but the company still reported negative margins and analysts expect it to remain unprofitable this year.

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) fell 3.3% on Wednesday . The company traded as low as $16.99 and last traded at $17.18. 21,069,378 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 31,823,348 shares. The stock had previously closed at $17.76.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on RIVN. TD Cowen reiterated a "buy" rating and issued a $20.00 price target on shares of Rivian Automotive in a report on Wednesday, June 3rd. UBS Group increased their price objective on shares of Rivian Automotive from $16.00 to $17.00 and gave the stock a "neutral" rating in a research note on Thursday, July 9th. Needham & Company LLC reissued a "buy" rating and set a $23.00 target price on shares of Rivian Automotive in a report on Wednesday, June 10th. Jefferies Financial Group upped their price target on shares of Rivian Automotive from $16.00 to $17.00 and gave the company a "hold" rating in a report on Tuesday, July 7th. Finally, 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 note on Monday, May 11th. Twelve analysts have rated the stock with a Buy rating, eight have given a Hold rating and six have given a Sell rating to the company. Based on data from MarketBeat, Rivian Automotive has an average rating of "Hold" and a consensus target price of $18.86.

Rivian Automotive Trading Down 3.3%

The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.64 and a current ratio of 2.10. The company has a 50 day moving average price of $16.18 and a two-hundred day moving average price of $16.04. The firm has a market capitalization of $23.38 billion, a price-to-earnings ratio of -5.88 and a beta of 1.60.

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 business had revenue of $1.38 billion during the quarter, compared to analysts' expectations of $1.37 billion. Rivian Automotive had a negative net margin of 63.62% and a negative return on equity of 75.65%. The company's quarterly revenue was up 11.4% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.48) earnings per share. On average, research analysts forecast that Rivian Automotive, Inc. will post -3.06 EPS for the current year.

Insider Buying and Selling

In other Rivian Automotive news, CEO Robert J. Scaringe sold 34,818 shares of the stock in a transaction dated 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 owned 922,286 shares in the company, valued at approximately $13,834,290. This represents a 3.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 8,023 shares of the stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $16.00, for a total value of $128,368.00. Following the completion of the sale, the chief financial officer directly owned 887,007 shares of the company's stock, valued at approximately $14,192,112. This represents a 0.90% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 68,385 shares of company stock worth $1,125,094. 1.48% of the stock is owned by insiders.

Institutional Trading of Rivian Automotive

Several hedge funds have recently made changes to their positions in the company. Parallel Advisors LLC lifted its holdings in shares of Rivian Automotive by 4.0% in the first 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 in the last quarter. Illinois Municipal Retirement Fund grew its position in shares of Rivian Automotive by 1.6% in the fourth quarter. Illinois Municipal Retirement Fund now owns 43,282 shares of the electric vehicle automaker's stock valued at $853,000 after purchasing an additional 686 shares during the period. Merit Financial Group LLC lifted its position in 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 period. Geneos Wealth Management Inc. boosted its stake in Rivian Automotive by 36.5% in the 4th 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 grew its holdings in Rivian Automotive by 0.6% in the 4th 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. Hedge funds and other 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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