Rivian Automotive (NASDAQ:RIVN) Stock Price Down 2% – Should You Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN)’s stock price fell 2% during mid-day trading on Tuesday . The stock traded as low as $15.30 and last traded at $15.54. 21,032,572 shares traded hands during trading, a decline of 29% from the average session volume of 29,666,182 shares. The stock had previously closed at $15.86.

More Rivian Automotive News

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

• Positive Sentiment: Rivian will participate in Evercore’s ADAS, AV & AI Forum on September 29. Senior executives James Philbin and Chip Newcom are expected to discuss autonomy, artificial intelligence and potentially the company’s technology roadmap. Any additional details about R2 execution or software monetization could support investor confidence. Rivian to Participate in Evercore ADAS, AV & AI Forum
• Positive Sentiment: Some analysts and commentators continue to view Rivian as a beaten-down EV stock with substantial long-term upside, but that outlook depends heavily on successful R2 production and improving financial performance. 2 Beaten-Down Stocks With Massive Upside Potential
• Neutral Sentiment: Insider Michael John Callahan sold 15,000 shares for approximately $244,350, reducing his stake by 1.45%. Because the transaction was made under a pre-arranged Rule 10b5-1 trading plan and he still owns more than 1 million shares, the sale is a limited signal rather than clear evidence of deteriorating confidence. Rivian Insider Share Sale
• Negative Sentiment: Citigroup reportedly questioned whether Rivian has demonstrated the ability to manufacture vehicles at high volume. The concern is significant because the company’s longer-term investment case depends on efficiently scaling the R2, making production execution a key risk for RIVN. RIVN Stock Slides on R2 Ramp Concerns
• Negative Sentiment: The insider sale comes as Rivian’s CFO prepares to step down in October, adding management-transition uncertainty to existing concerns about losses and execution. Rivian remains unprofitable, with analysts expecting a full-year loss.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on RIVN shares. Jefferies Financial Group raised their price objective on Rivian Automotive from $16.00 to $17.00 and gave the company a “hold” rating in a research note on Tuesday, July 7th. Piper Sandler raised shares of Rivian Automotive from a “neutral” rating to an “overweight” rating and raised their price target for the company from $18.00 to $20.00 in a research report on Monday, July 27th. Royal Bank Of Canada boosted their price target on shares of Rivian Automotive from $14.00 to $16.00 and gave the stock a “sector perform” rating in a report on Friday, July 31st. Stifel Nicolaus set a $22.00 price target on Rivian Automotive in a report on Monday, August 24th. Finally, Morgan Stanley lifted their target price on Rivian Automotive from $13.00 to $14.00 and gave the stock an “underweight” rating in a research note on Friday, July 31st. Twelve investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and seven have given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $19.00.

Rivian Automotive Stock Up 2.7%

The firm has a market capitalization of $22.65 billion, a P/E ratio of -6.06 and a beta of 1.62. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10. The stock has a 50 day moving average of $16.26 and a 200-day moving average of $15.91.

Rivian Automotive (NASDAQ:RIVN) last announced its quarterly earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) earnings per share for the quarter, beating the consensus estimate of ($0.66) by $0.03. The company had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.52 billion. Rivian Automotive had a negative return on equity of 73.90% and a negative net margin of 54.96%.The firm’s quarterly revenue was up 27.2% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.97) earnings per share. Research analysts predict that Rivian Automotive, Inc. will post -2.98 earnings per share for the current fiscal year.

Insider Activity

In other Rivian Automotive news, Director Karen Boone sold 20,000 shares of the company’s 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 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 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 dated Friday, September 11th. The shares were sold at an average price of $16.29, for a total value of $244,350.00. Following the transaction, the insider directly owned 1,016,776 shares in the company, valued at $16,563,281.04. This trade represents a 1.45% 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. In the last 90 days, insiders sold 56,167 shares of company stock valued at $963,306. Corporate insiders own 1.48% of the company’s stock.

Hedge Funds Weigh In On Rivian Automotive

Institutional investors and hedge funds have recently bought and sold shares of the stock. Parallel Advisors LLC boosted its position in Rivian Automotive by 4.0% during the 1st quarter. Parallel Advisors LLC now owns 16,056 shares of the electric vehicle automaker’s stock worth $242,000 after purchasing an additional 613 shares during the period. Tradition Wealth Management LLC lifted its stake in shares of Rivian Automotive by 5.7% during the fourth quarter. Tradition Wealth Management LLC now owns 14,056 shares of the electric vehicle automaker’s stock worth $277,000 after purchasing an additional 753 shares in the last quarter. Reynders McVeigh Capital Management LLC boosted its position in shares of Rivian Automotive by 6.8% in the second quarter. Reynders McVeigh Capital Management LLC now owns 15,767 shares of the electric vehicle automaker’s stock worth $274,000 after buying an additional 1,000 shares during the period. Assenagon Asset Management S.A. boosted its position in shares of Rivian Automotive by 2.0% in the second quarter. Assenagon Asset Management S.A. now owns 56,758 shares of the electric vehicle automaker’s stock worth $985,000 after buying an additional 1,134 shares during the period. Finally, MTM Investment Management LLC grew its stake in shares of Rivian Automotive by 115.0% in the fourth quarter. MTM Investment Management LLC now owns 2,150 shares of the electric vehicle automaker’s stock valued at $42,000 after buying an additional 1,150 shares in the last quarter. 66.25% of the stock is currently owned by institutional investors.

About Rivian Automotive

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.