Rivian Automotive (NASDAQ:RIVN) Shares Climb 8.5% on Analyst Upgrade

Rivian Automotive, Inc. (NASDAQ:RIVN) shares shot up 8.5% on Monday after UBS Group upgraded the stock from a neutral rating to a buy rating. UBS Group now has a $17.00 price target on the stock. Rivian Automotive traded as high as $13.70 and last traded at $13.19. Approximately 65,020,053 shares were traded during mid-day trading, an increase of 121% from the average daily volume of 29,391,518 shares. The stock had previously closed at $12.16.

RIVN has been the subject of a number of other reports. Wells Fargo & Company lifted their price objective on shares of Rivian Automotive from $15.00 to $16.00 and gave the stock an “equal weight” rating in a report on Friday, July 31st. Yorkville Ives assumed coverage on Rivian Automotive in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $20.00 target price on the stock. Piper Sandler raised Rivian Automotive from a “neutral” rating to an “overweight” rating and increased their target price for the company from $18.00 to $20.00 in a research note on Monday, July 27th. Jefferies Financial Group upgraded Rivian Automotive from a “hold” rating to a “buy” rating and set a $17.00 price target on the stock in a research report on Friday. Finally, Royal Bank Of Canada lifted their price target on Rivian Automotive from $14.00 to $16.00 and gave the stock a “sector perform” rating in a research note on Friday, July 31st. Fifteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and five have given 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 $19.50.

Insider Buying and Selling

In other Rivian Automotive news, CFO Claire McDonough sold 13,144 shares of Rivian Automotive stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $14.50, for a total value of $190,588.00. Following the transaction, 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 position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 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. Also, insider Michael John Callahan sold 15,000 shares of the company’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $15.00, for a total transaction of $225,000.00. Following the sale, the insider owned 1,001,776 shares of the company’s stock, valued at $15,026,640. This represents a 1.48% 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. Insiders sold a total of 51,167 shares of company stock worth $788,306 over the last ninety days. Insiders own 1.48% of the company’s stock.

Trending Headlines about Rivian Automotive

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

• Positive Sentiment: UBS upgraded Rivian to Buy from Hold and maintained a $17 price target, implying roughly 30% upside from recent levels. Analyst Joseph Spak cited improving demand prospects for the lower-priced R2 models, an expected production inflection, higher automotive gross margins and growing software revenue. Rivian stock jumps 10%, here’s why
• Positive Sentiment: Rivian’s third-quarter results exceeded expectations, with revenue rising 38.3% year over year to $2.16 billion and an adjusted loss of $0.48 per share, better than the expected $0.64 loss. The R2 launch is expected to expand volumes and improve the company’s cost structure. RIVN Q3 deep dive: R2 launch drives volume
• Positive Sentiment: Rivian management highlighted autonomy as a potential long-term market-share catalyst, while several firms, including Evercore ISI and Stifel, continued to rate the shares Buy. Rivian CEO Says Autonomy Could Drive Huge Changes
• Neutral Sentiment: Analyst sentiment is mixed: Jefferies upgraded Rivian, while Cantor Fitzgerald and Needham lowered their price targets. The conflicting views suggest investors remain focused on execution of the R2 production ramp and the timing of margin improvement. Rivian Automotive Upgraded at Jefferies
• Negative Sentiment: Despite the earnings beat, Rivian remains deeply unprofitable, with a negative net margin and analysts expecting a full-year loss. Investors continue to question whether the company can scale production and reach sustainable profitability before cash-burn concerns intensify. Rivian Earnings Don’t Mask Stock Collapse

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of RIVN. Dimensional Fund Advisors LP grew its holdings in Rivian Automotive by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 7,438,776 shares of the electric vehicle automaker’s stock valued at $111,896,000 after purchasing an additional 25,382 shares during the period. Hsbc Holdings PLC raised its stake in shares of Rivian Automotive by 55.8% in the first quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker’s stock worth $46,625,000 after buying an additional 1,109,171 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Rivian Automotive in the second quarter worth about $49,915,000. Swiss National Bank raised its stake in shares of Rivian Automotive by 8.2% in the first quarter. Swiss National Bank now owns 2,331,000 shares of the electric vehicle automaker’s stock worth $35,082,000 after buying an additional 176,500 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Rivian Automotive by 22.1% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,970,637 shares of the electric vehicle automaker’s stock valued at $29,441,000 after buying an additional 356,540 shares in the last quarter. Hedge funds and other institutional investors own 66.25% of the company’s stock.

Rivian Automotive Trading Up 8.5%

The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.70 and a current ratio of 2.18. The stock has a market capitalization of $19.10 billion, a PE ratio of -5.86 and a beta of 1.64. The stock has a 50-day moving average price of $14.53 and a two-hundred day moving average price of $15.50.

Rivian Automotive (NASDAQ:RIVN) last announced its quarterly earnings data on Thursday, October 29th. The electric vehicle automaker reported ($0.48) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.64) by $0.16. The company had revenue of $2.15 billion during the quarter, compared to the consensus estimate of $2 billion. Rivian Automotive had a negative return on equity of 69.68% and a negative net margin of 45.88%. The firm’s revenue was up 38.3% on a year-over-year basis. During the same period in the previous year, the company posted ($1.08) EPS. As a group, equities analysts forecast that Rivian Automotive, Inc. will post -2.92 earnings per share for the current year.

About Rivian Automotive

Rivian Automotive, Inc is an electric vehicle manufacturer that designs, develops and produces all-electric trucks, sport utility vehicles and commercial delivery vans. The company focuses on vehicles intended for outdoor recreation, everyday transportation and fleet use, combining battery-electric powertrains with software and connected-vehicle technologies.

Rivian’s consumer vehicle lineup includes the R1T pickup truck and R1S sport utility vehicle. The company also develops electric commercial vans for business and delivery fleets, including vehicles produced through its relationship with Amazon.