Rivian Automotive Sees Unusually High Options Volume (NASDAQ:RIVN)

Key Points

• Rivian saw unusually heavy options activity, with traders purchasing 185,311 call options—43% above the typical volume of 129,677.
• Insiders sold 84,008 shares worth approximately $1.37 million over the past 90 days, while institutional investors and hedge funds own 66.25% of Rivian’s stock.
• Rivian beat quarterly earnings and revenue expectations, but analysts maintain a consensus “Hold” rating with an average price target of $18.95, compared with the stock’s Monday opening price of $16.97.

Rivian Automotive, Inc. (NASDAQ:RIVN - Get Free Report) was the recipient of unusually large options trading on Monday. Stock traders acquired 185,311 call options on the company. This represents an increase of 43% compared to the typical volume of 129,677 call options.

Insiders Place Their Bets

In other news, CFO Claire Mcdonough sold 8,023 shares of Rivian Automotive stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $16.00, for a total transaction of $128,368.00. Following the transaction, the chief financial officer directly owned 819,178 shares in the company, valued at approximately $13,106,848. This trade represents a 0.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Karen Boone sold 20,000 shares of the business's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $20.00, for a total value of $400,000.00. Following the completion of the sale, the director directly owned 110,000 shares in the company, valued at $2,200,000. This represents a 15.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 84,008 shares of company stock worth $1,369,594 over the last ninety days. Company insiders own 1.48% of the company's stock.

Hedge Funds Weigh In On Rivian Automotive

Several institutional investors and hedge funds have recently bought and sold shares of RIVN. Capital International Investors increased its holdings in shares of Rivian Automotive by 13.2% in the 4th quarter. Capital International Investors now owns 20,769,844 shares of the electric vehicle automaker's stock valued at $409,374,000 after purchasing an additional 2,418,717 shares during the period. Renaissance Technologies LLC boosted its holdings in shares of Rivian Automotive by 32.4% during the fourth quarter. Renaissance Technologies LLC now owns 16,397,496 shares of the electric vehicle automaker's stock worth $323,195,000 after purchasing an additional 4,012,386 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Rivian Automotive by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 14,782,865 shares of the electric vehicle automaker's stock worth $290,568,000 after purchasing an additional 59,503 shares during the period. Norges Bank purchased a new position in Rivian Automotive during the fourth quarter valued at approximately $220,323,000. Finally, Soma Equity Partners LP grew its position in Rivian Automotive by 9.9% during the third quarter. Soma Equity Partners LP now owns 9,204,745 shares of the electric vehicle automaker's stock valued at $135,126,000 after purchasing an additional 829,782 shares in the last quarter. Hedge funds and other institutional investors own 66.25% of the company's stock.

Rivian Automotive Price Performance

RIVN opened at $16.97 on Monday. The firm has a market capitalization of $24.57 billion, a P/E ratio of -6.58 and a beta of 1.61. The stock has a fifty day moving average of $16.48 and a 200-day moving average of $15.82. The company has a quick ratio of 1.65, a current ratio of 2.10 and a debt-to-equity ratio of 0.87. Rivian Automotive has a 12-month low of $12.16 and a 12-month high of $22.69.

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

Analysts Set New Price Targets

A number of research analysts recently issued reports on RIVN shares. Piper Sandler raised Rivian Automotive from a "neutral" rating to an "overweight" rating and lifted their target price for the stock from $18.00 to $20.00 in a report on Monday, July 27th. 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. Cantor Fitzgerald restated a "neutral" rating and set a $19.00 price objective on shares of Rivian Automotive in a research report on Tuesday, July 28th. UBS Group lifted 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. Finally, Wall Street Zen upgraded shares of Rivian Automotive from a "sell" rating to a "hold" rating in a report on Saturday, August 1st. Twelve equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $18.95.

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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