Rivian Automotive (NASDAQ:RIVN) Stock Falls 4.8% – Should You Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN) shares traded down 4.8% on Friday. The stock traded as low as $12.15 and last traded at $12.18. 28,296,110 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 29,412,283 shares. The stock had previously closed at $12.80.

Analyst Ratings Changes

A number of brokerages recently issued reports on RIVN. Morgan Stanley increased their target price on shares of Rivian Automotive from $13.00 to $14.00 and gave the stock an “underweight” rating in a research report on Friday, July 31st. TD Cowen upped their price objective on shares of Rivian Automotive from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Yorkville Ives initiated coverage on shares of Rivian Automotive in a research note on Tuesday, October 6th. They set an “outperform” rating and a $20.00 price objective on the stock. Needham & Company LLC dropped their price objective on shares of Rivian Automotive from $23.00 to $18.00 and set a “buy” rating for the company in a report on Friday, October 30th. Finally, Stifel Nicolaus reissued a “buy” rating and issued a $22.00 target price on shares of Rivian Automotive in a report on Monday. Fifteen investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $19.50.

Rivian Automotive Trading Down 4.8%

The company has a current ratio of 2.18, a quick ratio of 1.70 and a debt-to-equity ratio of 0.78. The stock has a market cap of $17.78 billion, a P/E ratio of -5.41 and a beta of 1.64. The business’s fifty day simple moving average is $14.02 and its 200 day simple moving average is $15.35.

Rivian Automotive (NASDAQ:RIVN) last announced its earnings results on Thursday, October 29th. The electric vehicle automaker reported ($0.48) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.64) by $0.16. Rivian Automotive had a negative net margin of 45.88% and a negative return on equity of 69.68%. The company had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2 billion. During the same period in the prior year, the business earned ($1.08) earnings per share. Rivian Automotive’s quarterly revenue was up 38.3% on a year-over-year basis. As a group, analysts expect that Rivian Automotive, Inc. will post -2.72 EPS for the current year.

Insider Activity at Rivian Automotive

In other Rivian Automotive news, CFO Claire McDonough sold 13,144 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $14.50, for a total transaction of $190,588.00. Following the transaction, the chief financial officer owned 827,201 shares of the company’s stock, valued at approximately $11,994,414.50. This represents a 1.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through 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 stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $15.00, for a total value of $225,000.00. Following the completion of the transaction, the insider owned 1,001,776 shares in the company, valued at $15,026,640. The trade was a 1.48% 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. Insiders sold a total of 51,167 shares of company stock valued at $788,306 in the last 90 days. 1.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rivian Automotive

Hedge funds have recently added to or reduced their stakes in the company. Independent Financial Group LLC bought a new stake in shares of Rivian Automotive during the first quarter worth approximately $985,000. Baird Financial Group Inc. raised its position in shares of Rivian Automotive by 163.9% during the 2nd quarter. Baird Financial Group Inc. now owns 289,693 shares of the electric vehicle automaker’s stock valued at $5,026,000 after acquiring an additional 179,913 shares during the last quarter. Mizuho Markets Americas LLC lifted its stake in shares of Rivian Automotive by 16.1% in the 1st quarter. Mizuho Markets Americas LLC now owns 683,024 shares of the electric vehicle automaker’s stock valued at $10,280,000 after purchasing an additional 94,840 shares during the period. Bank of New York Mellon Corp bought a new position in shares of Rivian Automotive in the 2nd quarter worth $49,915,000. Finally, SEB Asset Management AB bought a new position in shares of Rivian Automotive in the 1st quarter worth $2,561,000. Institutional investors 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 lineup includes the R1T electric pickup truck and R1S electric sport utility vehicle, while its commercial offerings include electric delivery vans and fleet services. Founded in 2009 by RJ Scaringe, the company began delivering its R1T and R1S vehicles in 2021. Rivian also develops vehicle software, charging solutions and services intended to support its consumer and commercial customers.