Rivian Automotive (NASDAQ:RIVN) Shares Up 1.1% – Here’s Why

Rivian Automotive, Inc. (NASDAQ:RIVN) rose 1.1% during mid-day trading on Thursday . The stock traded as high as $16.09 and last traded at $15.40. Approximately 25,537,713 shares traded hands during mid-day trading, a decline of 14% from the average session volume of 29,629,727 shares. The stock had previously closed at $15.23.

Key Stories Impacting Rivian Automotive

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

• Positive Sentiment: Rivian was cited as a beaten-down stock with significant long-term upside potential. The bullish case centers on strong liquidity, improving gross profitability, limited shareholder dilution and successful execution of the upcoming R2 midsize SUV program. 2 Beaten-Down Stocks With Massive Upside Potential
• Positive Sentiment: Rivian shares also benefited from broader enthusiasm for the EV and autonomous-vehicle sector after Lucid announced a 25,000-vehicle European robotaxi agreement. The read-through is supportive for sentiment, although the deal’s details may limit its immediate financial impact on the industry. Lucid Surges on Robotaxi Deal
• Neutral Sentiment: Rivian will participate in Evercore’s ADAS, AV & AI Forum on September 29. The presentation by autonomy and AI executives could provide updates on technology and strategy, but it does not immediately change the company’s financial outlook. Rivian to Participate in Evercore ADAS, AV & AI Forum
• Neutral Sentiment: Citigroup initiated coverage of Rivian, adding fresh institutional research attention. The lack of a reported rating or price target makes the immediate market effect unclear. Rivian Coverage Initiated at Citigroup
• Negative Sentiment: Investors remain concerned that Rivian has not yet demonstrated the ability to manufacture vehicles at high volume. Citi said the longer-term investment case depends heavily on scaling the R2, keeping execution risk elevated. RIVN Stock Continues to Slide on Ramp Concerns
• Negative Sentiment: Insider Michael John Callahan sold 15,000 shares for approximately $244,350 under a pre-arranged Rule 10b5-1 plan. The planned nature of the transaction and his remaining ownership of more than 1 million shares reduce its significance, but the sale can still weigh modestly on sentiment amid the upcoming CFO transition. Rivian Insider Share Sale

Analysts Set New Price Targets

RIVN has been the topic of a number of recent research reports. TD Cowen boosted their price objective on Rivian Automotive from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Citigroup started coverage on Rivian Automotive in a research note on Monday. They issued a “hold” rating and a $18.00 target price for the company. Jefferies Financial Group raised their target price on Rivian Automotive from $16.00 to $17.00 and gave the company a “hold” rating in a report on Tuesday, July 7th. Cantor Fitzgerald reissued a “neutral” rating and set a $19.00 price target on shares of Rivian Automotive in a research report on Tuesday, July 28th. Finally, Royal Bank Of Canada upped their price target on Rivian Automotive from $14.00 to $16.00 and gave the stock a “sector perform” rating in a report on Friday, July 31st. Twelve equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and seven have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $19.00.

Rivian Automotive Price Performance

The company has a current ratio of 2.10, a quick ratio of 1.65 and a debt-to-equity ratio of 0.87. The stock has a market cap of $22.30 billion, a PE ratio of -5.97 and a beta of 1.62. The company’s 50 day moving average is $16.26 and its 200-day moving average is $15.91.

Rivian Automotive (NASDAQ:RIVN) last posted its quarterly earnings data on Thursday, July 30th. The electric vehicle automaker reported ($0.63) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.66) by $0.03. 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 during the quarter, compared to analysts’ expectations of $1.52 billion. During the same period in the prior year, the company posted ($0.97) EPS. The firm’s revenue for the quarter was up 27.2% on a year-over-year basis. As a group, sell-side analysts predict that Rivian Automotive, Inc. will post -2.98 earnings per share for the current year.

Insider Activity at Rivian Automotive

In related news, Director Karen Boone sold 20,000 shares of the stock in a transaction dated 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 transaction, the director owned 110,000 shares of the company’s stock, valued at approximately $2,200,000. This represents a 15.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Michael John Callahan sold 15,000 shares of the firm’s stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $16.29, for a total value of $244,350.00. Following the sale, the insider owned 1,016,776 shares of the company’s stock, valued at approximately $16,563,281.04. This trade represents a 1.45% decrease in their position. 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 90 days, insiders sold 56,167 shares of company stock valued at $963,306. Insiders own 1.48% of the company’s stock.

Institutional Trading of Rivian Automotive

A number of hedge funds have recently made changes to their positions in the stock. Norges Bank bought a new position in Rivian Automotive in the 4th quarter valued at about $220,323,000. Bank of New York Mellon Corp bought a new stake in shares of Rivian Automotive during the 2nd quarter worth about $49,915,000. Capital International Investors lifted its stake 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 worth $409,374,000 after acquiring an additional 2,418,717 shares during the period. MUFG Securities EMEA plc acquired a new stake in shares of Rivian Automotive in the 4th quarter worth approximately $24,263,000. Finally, Hsbc Holdings PLC lifted its stake in shares of Rivian Automotive by 55.8% in the 1st quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker’s stock worth $46,625,000 after acquiring an additional 1,109,171 shares during the period. Institutional investors and hedge funds own 66.25% of the company’s stock.

Rivian Automotive Company Profile

Rivian Automotive, Inc designs, develops and manufactures electric vehicles and related technology. Its consumer vehicle lineup includes the R1T electric pickup truck and R1S electric SUV, which are designed for on-road and off-road use. The company also develops charging solutions, vehicle software and connected services intended to support the ownership and operation of its electric vehicles.

Rivian produces electric commercial vans for delivery and fleet applications, including vehicles developed through its relationship with Amazon.