Rivian Automotive (NASDAQ:RIVN) Trading Down 3.4% - Here's What Happened

Key Points

• Rivian shares fell about 3.4% to roughly $14.51 on Monday, trading ~48.5 million shares (a ~65% increase versus average), leaving the company with a market cap near $18.0 billion.
• Analyst coverage is mixed: the stock’s average rating is Hold with a consensus target of $18.41, though firms range from Buy to Sell and recent moves include Wolfe Research downgrading to underperform and TD Cowen upgrading to Buy with a $20 target.
• Rivian slightly beat the quarter’s EPS and revenue estimates (EPS -$0.54 vs. -$0.68; revenue $1.29B vs. $1.27B) but revenue was down 25.8% YoY and margins remain deeply negative, and insiders (including the CEO and CFO) have sold shares recently (148,888 shares over the last 90 days).

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s stock price traded down 3.4% on Monday . The stock traded as low as $14.39 and last traded at $14.51. 48,519,120 shares were traded during mid-day trading, an increase of 65% from the average session volume of 29,428,842 shares. The stock had previously closed at $15.02.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Wolfe Research cut shares of Rivian Automotive from a "peer perform" rating to an "underperform" rating in a report on Monday, January 12th. Jefferies Financial Group reaffirmed a "hold" rating and issued a $15.00 target price on shares of Rivian Automotive in a report on Tuesday, March 3rd. TD Cowen raised shares of Rivian Automotive from a "hold" rating to a "buy" rating and raised their target price for the company from $17.00 to $20.00 in a report on Tuesday, March 10th. Needham & Company LLC reiterated a "buy" rating and issued a $23.00 price target on shares of Rivian Automotive in a research note on Friday. Finally, Tigress Financial reiterated a "buy" rating and issued a $25.00 price target on shares of Rivian Automotive in a research note on Friday, April 10th. Twelve investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $18.41.

Rivian Automotive Price Performance

The company has a market capitalization of $18.01 billion, a PE ratio of -4.97 and a beta of 1.64. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.10 and a quick ratio of 1.64. The company's 50 day simple moving average is $15.71 and its 200 day simple moving average is $16.22.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last announced its quarterly earnings results on Thursday, February 12th. The electric vehicle automaker reported ($0.54) EPS for the quarter, beating the consensus estimate of ($0.68) by $0.14. The company had revenue of $1.29 billion for the quarter, compared to analyst estimates of $1.27 billion. Rivian Automotive had a negative net margin of 63.62% and a negative return on equity of 75.65%. The firm's revenue was down 25.8% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.70) earnings per share. As a group, sell-side analysts predict that Rivian Automotive, Inc. will post -3.04 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Robert J. Scaringe sold 34,900 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $16.80, for a total transaction of $586,320.00. Following the transaction, the chief executive officer directly owned 1,044,731 shares in the company, valued at approximately $17,551,480.80. This trade represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Claire Mcdonough sold 27,133 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $16.80, for a total transaction of $455,834.40. Following the transaction, the chief financial officer owned 680,836 shares in the company, valued at approximately $11,438,044.80. This trade represents a 3.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 148,888 shares of company stock worth $2,411,276. Insiders own 2.16% of the company's stock.

Hedge Funds Weigh In On Rivian Automotive

Hedge funds have recently modified their holdings of the business. 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. grew 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 worth $31,000 after acquiring an additional 1,395 shares during the last quarter. Zions Bancorporation National Association UT purchased a new position in shares of Rivian Automotive during the fourth quarter worth approximately $33,000. Glass Jacobson Investment Advisors llc grew 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 worth $34,000 after acquiring an additional 852 shares during the last quarter. Finally, Newbridge Financial Services Group Inc. grew 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 worth $26,000 after acquiring an additional 1,000 shares during the last quarter. 66.25% of the stock is currently owned by hedge funds and other 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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