Rivian Automotive (NASDAQ:RIVN) Stock Jumps 6.2% Following Earnings Beat

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price traded up 6.2% on Friday following a better than expected earnings announcement. The company traded as high as $12.27 and last traded at $12.16. Approximately 62,368,765 shares were traded during trading, an increase of 113% from the average daily volume of 29,256,053 shares. The stock had previously closed at $11.45.

The electric vehicle automaker reported ($0.48) earnings per share for the quarter, beating the consensus estimate of ($0.64) by $0.16. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. The firm had revenue of $2.15 billion during the quarter, compared to the consensus estimate of $2 billion. During the same period last year, the firm posted ($1.08) EPS. The firm’s revenue for the quarter was up 38.3% on a year-over-year basis.

More Rivian Automotive News

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

• Positive Sentiment: Q3 results beat expectations: Rivian reported revenue of approximately $2.15 billion, up 38.3% year over year, and an adjusted loss of $0.48 per share versus consensus expectations for a loss of roughly $0.64-$0.65. Higher deliveries, stronger gross profit and software revenue supported the double beat. Rivian Q3 Highlights: Stock Gains on Double Beat, Updated Vehicle Delivery Guidance
• Positive Sentiment: R2 momentum is the main catalyst: The new R2 SUV became Rivian’s best-selling vehicle in the quarter. Strong demand helped the company raise its full-year delivery outlook, reinforcing hopes that the more affordable model can drive scale and improve profitability. Why Did Rivian Stock Surge Higher on Friday?
• Positive Sentiment: Growth initiatives are expanding: Rivian is adding an AI assistant to its $5.8 billion joint venture with Volkswagen and recently acquired Third Dimension AI to enhance driver-assistance technology and its Autonomy+ services. These efforts could create longer-term software and services revenue opportunities. Rivian expands joint venture with VW to include AI assistant
• Neutral Sentiment: Analyst views are mixed: Jefferies upgraded Rivian to Buy with a $17 price target, while Needham maintained Buy but reduced its target to $18. Cantor Fitzgerald lowered its target to $16 and kept a Neutral rating. The targets still imply upside, but the reductions reflect ongoing execution and valuation risks. Rivian Automotive Analysts Lower Their Forecasts Following Q3 Earnings
• Negative Sentiment: Profitability remains unresolved: Rivian still posted a substantial net loss, negative margins and heavy cash burn. Investors will continue watching whether falling unit costs and higher R2 volumes can offset the capital required for the production ramp.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Yorkville Ives initiated coverage on shares of Rivian Automotive in a report on Tuesday, October 6th. They issued an “outperform” rating and a $20.00 price objective for the company. Weiss Ratings reissued a “sell (d-)” rating on shares of Rivian Automotive in a research note on Friday, October 2nd. Piper Sandler raised shares of Rivian Automotive from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $18.00 to $20.00 in a research report on Monday, July 27th. BNP Paribas Exane lifted their price objective on shares of Rivian Automotive from $22.00 to $24.00 and gave the company an “outperform” rating in a research note on Wednesday, July 8th. Finally, Stifel Nicolaus set a $22.00 target price on Rivian Automotive in a research note on Monday, August 24th. Fourteen analysts have rated the stock with a Buy rating, eight have given a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $19.50.

Insiders Place Their Bets

In other Rivian Automotive news, CFO Claire McDonough sold 8,023 shares of the company’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $16.00, for a total transaction of $128,368.00. Following the completion of the sale, the chief financial officer owned 819,178 shares in the company, valued at approximately $13,106,848. The trade was a 0.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through 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 Rivian Automotive stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $15.00, for a total transaction of $225,000.00. Following the transaction, the insider directly owned 1,001,776 shares in the company, valued at $15,026,640. The trade was a 1.48% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 51,167 shares of company stock valued at $788,306 in the last ninety days. Company insiders own 1.48% of the company’s stock.

Institutional Trading of Rivian Automotive

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. VCI Wealth Management LLC acquired a new position in shares of Rivian Automotive in the 3rd quarter valued at about $811,000. Traynor Capital Management Inc. lifted its holdings in Rivian Automotive by 30.8% during the third quarter. Traynor Capital Management Inc. now owns 17,646 shares of the electric vehicle automaker’s stock worth $264,000 after acquiring an additional 4,160 shares during the period. Sumitomo Mitsui Trust Group Inc. grew its position in Rivian Automotive by 22.1% during the third 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 during the period. Mirae Asset Global Investments Co. Ltd. bought a new position in Rivian Automotive during the third quarter valued at $327,000. Finally, Vise Technologies Inc. bought a new position in Rivian Automotive during the third quarter worth about $156,000. 66.25% of the stock is currently owned by institutional investors and hedge funds.

Rivian Automotive Stock Performance

The company has a 50-day moving average price of $14.60 and a two-hundred day moving average price of $15.53. The company has a market capitalization of $17.61 billion, a PE ratio of -4.71 and a beta of 1.62. The company has a quick ratio of 1.65, a current ratio of 2.10 and a debt-to-equity ratio of 0.87.

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.