Rivian Automotive (NASDAQ:RIVN) Trading Down 4.3% – Time to Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN) fell 4.3% during mid-day trading on Friday . The stock traded as low as $15.61 and last traded at $16.07. 40,796,377 shares were traded during mid-day trading, an increase of 34% from the average daily volume of 30,468,578 shares. The stock had previously closed at $16.80.

Trending Headlines about Rivian Automotive

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

• Positive Sentiment: Rivian recently reported better-than-expected quarterly results, with revenue of $1.66 billion versus the $1.52 billion consensus estimate, and raised its full-year delivery guidance. The company is also preparing to launch its smaller, more affordable R2 SUVs, a key potential growth driver. Rivian delivery forecasts article
• Neutral Sentiment: Analysts maintain a consensus “Hold” recommendation, reflecting a balance between Rivian’s growth opportunity and ongoing losses, execution risk and fragile U.S. electric-vehicle demand. Rivian consensus analyst recommendation
• Negative Sentiment: McDonough will step down on October 30 to pursue a new opportunity at GE Vernova and relocate closer to family. She has served as Rivian’s CFO since January 2021 and will remain for roughly two months to support the transition. Investors appear concerned about losing an experienced finance chief at a critical point for the R2 ramp and the company’s path toward profitability. Rivian CFO transition announcement
• Negative Sentiment: The CFO news pressured Rivian even as the broader market traded higher, indicating that the decline was primarily company-specific rather than the result of broad market weakness. The reaction also came amid renewed pressure across electric-vehicle stocks. Rivian shares fall after CFO departure

Wall Street Analyst Weigh In

RIVN has been the topic of a number of analyst reports. Jefferies Financial Group upped their target price on Rivian Automotive from $16.00 to $17.00 and gave the company a “hold” rating in a research note on Tuesday, July 7th. UBS Group raised their price target on Rivian Automotive from $16.00 to $17.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. Royal Bank Of Canada boosted their price objective on Rivian Automotive from $14.00 to $16.00 and gave the company a “sector perform” rating in a report on Friday, July 31st. Needham & Company LLC reaffirmed a “buy” rating on shares of Rivian Automotive in a research report on Monday, August 10th. Finally, BNP Paribas Exane increased their target price on Rivian Automotive from $22.00 to $24.00 and gave the stock an “outperform” rating in a research note on Wednesday, July 8th. Twelve research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and seven have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $19.05.

Rivian Automotive Stock Performance

The firm has a 50 day moving average of $16.50 and a 200-day moving average of $15.89. The company has a market cap of $23.27 billion, a P/E ratio of -6.23 and a beta of 1.61. 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 (NASDAQ:RIVN) last issued its earnings results 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 return on equity of 73.90% and a negative net margin of 54.96%.The business had revenue of $1.66 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same period in the previous year, the company posted ($0.97) EPS. Rivian Automotive’s revenue was up 27.2% on a year-over-year basis. As a group, sell-side analysts anticipate that Rivian Automotive, Inc. will post -2.98 EPS for the current fiscal year.

Insider Buying and Selling at Rivian Automotive

In other Rivian Automotive news, Director Karen Boone sold 20,000 shares of the stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $20.00, for a total transaction of $400,000.00. Following the transaction, 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 sale was disclosed in a legal filing 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. Also, CFO Claire Mcdonough sold 13,144 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total transaction of $190,588.00. Following the transaction, the chief financial officer directly owned 827,201 shares in the company, valued at $11,994,414.50. This trade represents a 1.56% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 41,167 shares of company stock worth $718,956. Insiders own 1.48% of the company’s stock.

Institutional Investors Weigh In On Rivian Automotive

Several hedge funds have recently modified their holdings of the business. Newbridge Financial Services Group Inc. boosted its stake in shares of Rivian Automotive by 113.6% during the second quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker’s stock valued at $26,000 after purchasing an additional 1,000 shares in the last quarter. Core Wealth Advisors LLC purchased a new position in Rivian Automotive during the fourth quarter valued at approximately $27,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Rivian Automotive in the third quarter worth approximately $31,000. Zions Bancorporation National Association UT bought a new position in Rivian Automotive in the fourth quarter worth approximately $33,000. Finally, Oslo Pensjonsforsikring AS purchased a new stake in Rivian Automotive during the first quarter worth $39,000. Hedge funds and other institutional investors own 66.25% of the company’s stock.

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.