Rivian Automotive (NASDAQ:RIVN) Trading Up 1.7% After Analyst Upgrade

Key Points

• Rivian shares rose 1.7% after Morgan Stanley lifted its price target from $12 to $13, though the firm kept an underweight rating, signaling continued caution.
• Other analysts have been mixed: UBS and BNP Paribas Exane recently raised targets, while the broader consensus remains Hold with an average price target of $18.86.
• Investor focus is also on Rivian’s capital needs and dilution risk, as the company’s new stock offering and insider sales have raised concerns ahead of upcoming catalysts like Q2 earnings and R2 demand updates.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shot up 1.7% during trading on Wednesday after Morgan Stanley raised their price target on the stock from $12.00 to $13.00. Morgan Stanley currently has an underweight rating on the stock. Rivian Automotive traded as high as $18.79 and last traded at $17.80. Approximately 29,070,955 shares changed hands during mid-day trading, a decline of 9% from the average session volume of 32,022,416 shares. The stock had previously closed at $17.50.

A number of other equities research analysts also recently issued reports on RIVN. UBS Group increased their price target on shares of Rivian Automotive from $16.00 to $17.00 and gave the stock a "neutral" rating in a report on Thursday, July 9th. Benchmark reaffirmed a "buy" rating and set a $25.00 target price on shares of Rivian Automotive in a report on Friday, May 1st. BNP Paribas Exane increased their target price on shares of Rivian Automotive from $22.00 to $24.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 8th. TD Cowen reissued a "buy" rating and issued a $20.00 price target on shares of Rivian Automotive in a report on Wednesday, June 3rd. Finally, Weiss Ratings upgraded shares of Rivian Automotive from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Monday, July 6th. Twelve analysts have rated the stock with a Buy rating, eight have issued a Hold rating and six have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $18.86.

Insider Buying and Selling

In related news, Director Karen Boone sold 20,000 shares of the firm's stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $20.00, for a total value of $400,000.00. Following the sale, the director directly owned 110,000 shares of the company's stock, valued at $2,200,000. This trade represents a 15.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 10,245 shares of Rivian Automotive stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $18.00, for a total transaction of $184,410.00. Following the sale, the chief financial officer owned 946,814 shares of the company's stock, valued at approximately $17,042,652. The trade was a 1.07% decrease in their ownership of the stock. 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 78,630 shares of company stock worth $1,309,504. Insiders own 1.48% of the company's stock.

More Rivian Automotive News

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

• Positive Sentiment: California’s new EV incentive could help Rivian by making eligible vehicles more affordable for first-time buyers, potentially supporting demand for certain models. California's new EV incentive gives a leg up to Lucid and Rivian
• Positive Sentiment: Stifel Nicolaus reiterated its Buy rating on Rivian, signaling that at least one analyst still sees upside despite the recent selloff. Stifel Nicolaus Sticks to Its Buy Rating for Rivian Automotive (RIVN)
• Neutral Sentiment: Barclays and other market watchers say Rivian’s next major catalyst will be Q2 earnings and, more importantly, updates on demand for the new R2 model, which could affect sentiment but does not change fundamentals immediately. Rivian Stock Volatility Won't Be Tamed by Earnings
• Neutral Sentiment: Rivian was also highlighted for outperforming the broader market recently, but those gains have been overshadowed by the latest capital-raise concerns. Rivian Automotive (RIVN) Surpasses Market Returns: Some Facts Worth Knowing
• Negative Sentiment: A new stock offering is the latest sign that Rivian may still need outside funding, which can dilute existing shareholders and weigh on the stock. Down 18%, Should You Buy Rivian Stock After Its Biggest 1-Day Drop Since November 2024?
• Negative Sentiment: Morgan Stanley raised its price target but kept an underweight rating, implying downside risk remains from current levels. Morgan Stanley price target and underweight rating

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB raised its position in Rivian Automotive by 2.1% during the second quarter. Handelsbanken Fonder AB now owns 270,800 shares of the electric vehicle automaker's stock valued at $4,698,000 after purchasing an additional 5,600 shares in the last quarter. Valeo Financial Advisors LLC boosted its holdings in shares of Rivian Automotive by 6.8% in the 2nd quarter. Valeo Financial Advisors LLC now owns 25,887 shares of the electric vehicle automaker's stock worth $449,000 after purchasing an additional 1,642 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of Rivian Automotive by 2.0% in the 2nd quarter. Assenagon Asset Management S.A. now owns 56,758 shares of the electric vehicle automaker's stock worth $985,000 after purchasing an additional 1,134 shares in the last quarter. Western Wealth Management LLC bought a new position in shares of Rivian Automotive during the 1st quarter valued at about $179,000. Finally, Rathbones Group PLC purchased a new position in shares of Rivian Automotive during the 1st quarter valued at about $237,000. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

Rivian Automotive Trading Up 1.7%

The stock has a fifty day moving average of $15.85 and a two-hundred day moving average of $16.15. The company has a market capitalization of $22.09 billion, a PE ratio of -6.10 and a beta of 1.60. The company has a current ratio of 2.10, a quick ratio of 1.64 and a debt-to-equity ratio of 1.00.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its earnings results on Thursday, April 30th. The electric vehicle automaker reported ($0.55) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.60) by $0.05. The business had revenue of $1.38 billion during the quarter, compared to analyst estimates of $1.37 billion. Rivian Automotive had a negative return on equity of 75.65% and a negative net margin of 63.62%.Rivian Automotive's revenue for the quarter was up 11.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.48) earnings per share. As a group, sell-side analysts anticipate that Rivian Automotive, Inc. will post -3.07 earnings per share for the current fiscal year.

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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