Rivian Automotive (NASDAQ:RIVN) Stock Price Down 5.5% – Here’s What Happened

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price was down 5.5% on Thursday. The stock traded as low as $12.76 and last traded at $13.29. 44,404,011 shares were traded during mid-day trading, an increase of 50% from the average session volume of 29,541,297 shares. The stock had previously closed at $14.06.

Key Headlines Impacting Rivian Automotive

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

• Positive Sentiment: Sales of Rivian’s lower-priced model are reportedly ahead of expectations, a potentially important sign that the company can broaden demand beyond its premium vehicles. Did I Call the Bottom With Rivian Stock?
• Positive Sentiment: Investors are also weighing whether improving expected cash flow could support Rivian’s valuation. The article notes recent bank upgrades, although it frames the valuation question as unresolved. Is Rivian Automotive (RIVN) A Bargain As Cash Flow Improves?
• Positive Sentiment: The R2 has received recognition from Top Gear and MotorTrend, which may help build awareness ahead of Rivian’s planned European entry. Awards are supportive publicity, but do not by themselves guarantee sales. Rivian’s R2 Is Winning More Than Trophies and Fans
• Neutral Sentiment: A Trefis article highlights the question of who is financing Rivian’s cash burn, keeping funding needs in focus without the supplied summary providing further details. Who Is Paying For Rivian’s Cash Burn?
• Negative Sentiment: DA Davidson cut its price target from $17 to $15 and maintained a neutral rating. The revised target still implies upside from the cited share price, but the reduction signals a more cautious view. Tickerreport.com coverage of DA Davidson’s rating

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on RIVN shares. TD Cowen raised 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. Citigroup assumed coverage on Rivian Automotive in a report on Monday, September 14th. They issued a “hold” rating and a $18.00 target price for the company. DA Davidson decreased their target price on Rivian Automotive from $17.00 to $15.00 and set a “neutral” rating for the company in a research report on Friday. Stifel Nicolaus set a $22.00 price target on Rivian Automotive in a report on Monday, August 24th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Rivian Automotive in a research report on Friday, October 2nd. Fifteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $19.50.

Rivian Automotive Price Performance

The company has a market capitalization of $19.71 billion, a PE ratio of -6.05 and a beta of 1.64. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.70 and a current ratio of 2.18. The stock has a 50 day moving average price of $14.21 and a two-hundred day moving average price of $15.40.

Rivian Automotive (NASDAQ:RIVN) last announced its quarterly earnings results on Thursday, October 29th. The electric vehicle automaker reported ($0.48) EPS for the quarter, beating the consensus estimate of ($0.64) by $0.16. The business had revenue of $2.15 billion during the quarter, compared to analysts’ expectations of $2 billion. Rivian Automotive had a negative return on equity of 69.68% and a negative net margin of 45.88%. The firm’s quarterly revenue was up 38.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($1.08) EPS. Equities analysts forecast that Rivian Automotive, Inc. will post -2.72 earnings per share for the current year.

Insider Buying and Selling at Rivian Automotive

In related news, CFO Claire McDonough sold 13,144 shares of Rivian Automotive stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total value of $190,588.00. Following the completion of the sale, the chief financial officer owned 827,201 shares of the company’s stock, valued at approximately $11,994,414.50. The trade was a 1.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 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 company’s stock in a transaction 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 completion of the sale, the insider owned 1,001,776 shares of the company’s stock, valued at $15,026,640. This represents a 1.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 51,167 shares of company stock worth $788,306. 1.48% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Jacobi Capital Management LLC acquired a new position in Rivian Automotive during the 3rd quarter worth $25,000. MCF Advisors LLC lifted 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 buying an additional 1,750 shares during the last quarter. Ancora Advisors LLC acquired a new position in shares of Rivian Automotive during the second quarter worth approximately $44,000. Oslo Pensjonsforsikring AS bought a new stake in shares of Rivian Automotive in the first quarter valued at approximately $39,000. Finally, Heritage Family Offices LLP bought a new stake in shares of Rivian Automotive in the third quarter valued at approximately $49,000. Institutional investors and hedge funds 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.

Rivian primarily serves customers in the United States and Canada.