Rivian Automotive (NASDAQ:RIVN) Stock Jumps 1.8% – What’s Next?

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price shot up 1.8% on Thursday. The company traded as high as $15.58 and last traded at $15.29. 26,728,553 shares changed hands during trading, a decline of 9% from the average session volume of 29,506,123 shares. The stock had previously closed at $15.02.

Rivian Automotive News Summary

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

• Positive Sentiment: Rivian outperformed the broader market in the latest trading session, indicating continued investor interest in the electric-vehicle maker despite its history of volatility. Rivian Automotive Exceeds Market Returns
• Positive Sentiment: Some analysts view Rivian as potentially undervalued relative to the broader market and believe its long-term opportunity could improve if the company successfully scales production and executes on its upcoming vehicle lineup. Rivian vs. the S&P 500
• Neutral Sentiment: Rivian’s share performance was notable because the broader market declined, but the article provided limited new fundamental information to explain the move. Why the Market Dipped But Rivian Gained
• Neutral Sentiment: Recent commentary comparing Rivian with Tesla highlights its smaller valuation and potentially greater upside, but also its substantially higher execution and profitability risk. Tesla vs. Rivian
• Negative Sentiment: Rivian is facing a recall involving a rearview-camera software flaw. Although the company reportedly addressed the issue efficiently, recalls can add costs and increase investor concerns about vehicle quality. Rivian Rearview Camera Software Recall
• Negative Sentiment: A separate NHTSA filing identified a recall of 98,828 vehicles, including the R1S and R1T and the newer R2, reinforcing concerns about manufacturing reliability as Rivian expands. Rivian’s Largest Recall
• Negative Sentiment: Valuation analysis suggests RIVN may already reflect much of the expected sales growth, leaving limited room for upside unless revenue accelerates and the company makes progress toward profitability. Rivian Stock May Be Fully Priced on Sales Growth

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Royal Bank Of Canada lifted their target price on Rivian Automotive from $14.00 to $16.00 and gave the company a “sector perform” rating in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft downgraded Rivian Automotive from a “buy” rating to an “underperform” rating in a report on Tuesday, August 4th. Needham & Company LLC reaffirmed a “buy” rating on shares of Rivian Automotive in a research report on Monday, August 10th. Morgan Stanley lifted their price objective on Rivian Automotive from $13.00 to $14.00 and gave the company an “underweight” rating in a research note on Friday, July 31st. Finally, TD Cowen boosted their price objective on Rivian Automotive from $20.00 to $21.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Twelve research analysts have rated the stock with a Buy rating, nine have given a Hold rating and seven have given a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $19.00.

Rivian Automotive Trading Up 1.2%

The firm has a market capitalization of $22.40 billion, a PE ratio of -6.00 and a beta of 1.62. The company’s 50-day moving average price is $15.94 and its 200-day moving average price is $15.91. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10.

Rivian Automotive (NASDAQ:RIVN) last issued its earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, topping analysts’ consensus estimates of ($0.66) by $0.03. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same quarter in the previous year, the firm posted ($0.97) earnings per share. The company’s revenue was up 27.2% compared to the same quarter last year. On average, sell-side analysts expect that Rivian Automotive, Inc. will post -2.96 earnings per share for the current year.

Insider Transactions at Rivian Automotive

In other news, Director Karen Boone sold 20,000 shares of the firm’s stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $20.00, for a total transaction of $400,000.00. Following the sale, the director owned 110,000 shares of the company’s stock, valued at approximately $2,200,000. This trade represents a 15.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through 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 stock was sold at an average price of $14.50, for a total value of $190,588.00. Following the sale, 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 disclosure for this sale is available in the SEC filing. 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 ninety days, insiders sold 56,167 shares of company stock valued at $963,306. 1.48% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Rivian Automotive

Several hedge funds have recently added to or reduced their stakes in RIVN. QRG Capital Management Inc. grew its position in shares of Rivian Automotive by 7.5% in the 2nd quarter. QRG Capital Management Inc. now owns 36,564 shares of the electric vehicle automaker’s stock valued at $634,000 after buying an additional 2,546 shares during the last quarter. Andra AP fonden purchased a new stake in Rivian Automotive in the second quarter valued at $6,923,000. Reynders McVeigh Capital Management LLC boosted its stake in 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 valued at $274,000 after acquiring an additional 1,000 shares in the last quarter. Tidal Investments LLC boosted its stake in Rivian Automotive by 2.3% in the second quarter. Tidal Investments LLC now owns 292,956 shares of the electric vehicle automaker’s stock valued at $5,083,000 after acquiring an additional 6,566 shares in the last quarter. Finally, MCF Advisors LLC grew its holdings in shares of Rivian Automotive by 3,500.0% during the second quarter. MCF Advisors LLC now owns 1,800 shares of the electric vehicle automaker’s stock worth $31,000 after purchasing an additional 1,750 shares during the last quarter. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

Rivian Automotive Company Profile

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.