Rivian Automotive (NASDAQ:RIVN) Trading Up 6% - Here's What Happened

Key Points

• Rivian shares rose 6% to about $16.97 in mid-day trading, with volume approximately 15% above the daily average.
• Analyst sentiment remains mixed: Piper Sandler upgraded the stock and raised its target to $20, while the broader consensus rating is “Hold” with an average target price of $18.95.
• Rivian exceeded quarterly expectations, reporting a loss of $0.47 per share versus consensus estimates of a $0.66 loss and revenue of $1.66 billion, up 27.2% year over year.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report)'s share price rose 6% during mid-day trading on Friday . The company traded as high as $17.15 and last traded at $16.97. Approximately 35,198,883 shares were traded during trading, an increase of 15% from the average daily volume of 30,707,393 shares. The stock had previously closed at $16.01.

Analysts Set New Price Targets

A number of research firms have commented on RIVN. Piper Sandler upgraded shares of Rivian Automotive from a "neutral" rating to an "overweight" rating and raised their price target for the stock from $18.00 to $20.00 in a report on Monday, July 27th. Morgan Stanley raised their target price on Rivian Automotive from $13.00 to $14.00 and gave the company an "underweight" rating in a research note on Friday, July 31st. Weiss Ratings raised Rivian Automotive from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, July 6th. UBS Group raised their price objective on Rivian Automotive from $16.00 to $17.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Finally, Cantor Fitzgerald restated a "neutral" rating and set a $19.00 price objective on shares of Rivian Automotive in a report on Tuesday, July 28th. Twelve equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and seven have given a Sell rating to the company's stock. According to MarketBeat, Rivian Automotive currently has an average rating of "Hold" and a consensus target price of $18.95.

Rivian Automotive Price Performance

The stock has a market capitalization of $24.57 billion, a price-to-earnings ratio of -6.58 and a beta of 1.61. The business's fifty day moving average price is $16.47 and its 200-day moving average price is $15.81. The company has a debt-to-equity ratio of 0.87, a current ratio of 2.10 and a quick ratio of 1.65.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last posted its earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.47) earnings per share for the quarter, topping analysts' consensus estimates of ($0.66) by $0.19. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.52 billion. During the same quarter in the prior year, the business posted ($0.97) EPS. The firm's revenue was up 27.2% compared to the same quarter last year. On average, research analysts forecast that Rivian Automotive, Inc. will post -2.98 EPS for the current year.

Insider Transactions at Rivian Automotive

In related news, CEO Robert J. Scaringe sold 34,818 shares of Rivian Automotive stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $15.00, for a total transaction of $522,270.00. Following the transaction, the chief executive officer owned 922,286 shares of the company's stock, valued at $13,834,290. The trade was a 3.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 13,144 shares of the stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total value of $190,588.00. Following the completion of the sale, the chief financial officer directly owned 827,201 shares of the company's stock, valued at $11,994,414.50. The trade was a 1.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 75,985 shares of company stock valued at $1,241,226 over the last ninety days. 1.48% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rivian Automotive

Hedge funds have recently bought and sold shares of the company. Core Wealth Advisors LLC bought a new position in shares of Rivian Automotive during the fourth quarter valued at about $27,000. Zions Bancorporation National Association UT purchased a new stake in Rivian Automotive in the 4th quarter valued at about $33,000. Newbridge Financial Services Group Inc. lifted its position in shares of Rivian Automotive by 113.6% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker's stock worth $26,000 after buying an additional 1,000 shares in the last quarter. IFC & Insurance Marketing Inc. bought a new position in shares of Rivian Automotive during the 4th quarter worth approximately $39,000. Finally, Ameriflex Group Inc. purchased a new position in shares of Rivian Automotive in the 4th quarter worth approximately $39,000. 66.25% of the stock is 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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