Rivian Automotive (NASDAQ:RIVN) Trading Up 6.4% - Here's Why

Key Points

• Rivian shares rose 6.4% to about $15.73 in midday trading, although volume was 24% below the average daily level.
• Analyst sentiment remains mixed: Piper Sandler upgraded the stock to “overweight” and raised its target to $20, while Morgan Stanley maintained an “underweight” rating. The overall consensus is “Hold,” with an average price target of $18.95.
• Rivian exceeded quarterly expectations, reporting an adjusted loss of $0.47 per share versus the $0.66 consensus estimate and revenue of $1.66 billion, up 27.2% year over year. Despite the improvement, the company remains unprofitable, with a negative net margin of 54.96%.

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) shot up 6.4% on Wednesday . The stock traded as high as $15.74 and last traded at $15.73. Approximately 23,441,825 shares were traded during mid-day trading, a decline of 24% from the average daily volume of 30,778,635 shares. The stock had previously closed at $14.78.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Morgan Stanley raised their target price on shares of Rivian Automotive from $13.00 to $14.00 and gave the stock an "underweight" rating in a report on Friday, July 31st. Piper Sandler raised shares of Rivian Automotive from a "neutral" rating to an "overweight" rating and increased their price target for the company from $18.00 to $20.00 in a research report on Monday, July 27th. BNP Paribas Exane raised their price target on shares of Rivian Automotive from $22.00 to $24.00 and gave the stock an "outperform" rating in a report on Wednesday, July 8th. Needham & Company LLC reaffirmed a "buy" rating on shares of Rivian Automotive in a research note on Monday, August 10th. Finally, Wells Fargo & Company raised their target price on Rivian Automotive from $15.00 to $16.00 and gave the stock an "equal weight" rating in a research note on Friday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and seven have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $18.95.

Rivian Automotive Trading Up 6.4%

The company has a quick ratio of 1.65, a current ratio of 2.10 and a debt-to-equity ratio of 0.87. The firm's fifty day moving average is $16.45 and its two-hundred day moving average is $15.79. The firm has a market cap of $22.77 billion, a P/E ratio of -6.10 and a beta of 1.61.

Rivian Automotive (NASDAQ:RIVN - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The electric vehicle automaker reported ($0.47) EPS for the quarter, topping the consensus estimate of ($0.66) by $0.19. The business had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.52 billion. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. The company's revenue for the quarter was up 27.2% on a year-over-year basis. During the same period in the prior year, the business earned ($0.97) EPS. Analysts predict that Rivian Automotive, Inc. will post -2.98 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Rivian Automotive news, CEO Robert J. Scaringe sold 34,818 shares of the firm's 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 directly owned 922,286 shares in the company, valued at $13,834,290. This trade represents a 3.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 Rivian Automotive stock in a transaction that occurred 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 sale, the chief financial officer directly owned 827,201 shares in the company, valued at approximately $11,994,414.50. The trade was a 1.56% 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. 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 three months. Corporate insiders own 1.48% of the company's stock.

Institutional Investors Weigh In On Rivian Automotive

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Core Wealth Advisors LLC bought a new stake in shares of Rivian Automotive during the 4th quarter valued at $27,000. Zions Bancorporation National Association UT bought a new position in shares of Rivian Automotive in the 4th quarter worth about $33,000. Newbridge Financial Services Group Inc. lifted its position in 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 valued at $26,000 after acquiring an additional 1,000 shares during the period. IFC & Insurance Marketing Inc. bought a new stake in Rivian Automotive during the fourth quarter worth about $39,000. Finally, Ameriflex Group Inc. bought a new stake in Rivian Automotive during the fourth quarter worth about $39,000. 66.25% of the stock is owned by hedge funds and other institutional investors.

About Rivian Automotive

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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