Rivian Automotive (NASDAQ:RIVN) Shares Up 2.2% – Should You Buy?

Rivian Automotive, Inc. (NASDAQ:RIVN)’s stock price shot up 2.2% during mid-day trading on Wednesday . The stock traded as high as $14.86 and last traded at $14.70. 22,862,342 shares traded hands during mid-day trading, a decline of 22% from the average session volume of 29,375,666 shares. The stock had previously closed at $14.39.

Key Rivian Automotive News

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

• Positive Sentiment: Investors are focusing on Rivian’s growth story, including the upcoming R2 launch and expectations that software-related revenue could become a bigger driver as the company expands beyond its current lineup. Rivian Rallies 8% as Tesla, Nio Stall: R2 Launch and Software Growth in Focus
• Positive Sentiment: Rivian’s stock is also benefiting from improved sentiment across EV names and trader interest, which has helped push shares higher despite technical warning signs. Rivian Stock Climbs Friday: What’s Driving The Move?
• Neutral Sentiment: Rivian remains a trending stock, suggesting elevated investor attention and the potential for continued volatility as traders reassess the company’s outlook. Rivian Automotive, Inc. (RIVN) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: The biggest drag is a new NHTSA investigation into 114,922 R1S and R1T vehicles over a possible rear toe link defect, raising recall, repair, and reputational risk. US auto safety regulator opens probe into nearly 115,000 Rivian vehicles
• Negative Sentiment: Follow-up reports say the probe stems from rear suspension failures that may have caused vehicles to swerve, which could increase scrutiny and pressure on the stock if the issue widens. Rivian under investigation over rear suspension failures on R1 models

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on RIVN. Wall Street Zen raised Rivian Automotive from a “strong sell” rating to a “sell” rating in a research report on Sunday, May 10th. DA Davidson upped their price target on Rivian Automotive from $14.00 to $15.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Wells Fargo & Company upped their price target on Rivian Automotive from $12.00 to $15.00 and gave the stock an “equal weight” rating in a research note on Friday, February 13th. UBS Group upgraded Rivian Automotive from a “sell” rating to a “neutral” rating and upped their price target for the stock from $15.00 to $16.00 in a research note on Friday, February 13th. Finally, Jefferies Financial Group restated a “hold” rating and issued a $15.00 price target on shares of Rivian Automotive in a research note on Tuesday, March 3rd. Twelve analysts have rated the stock with a Buy rating, nine have issued a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat.com, Rivian Automotive presently has a consensus rating of “Hold” and a consensus target price of $18.57.

Rivian Automotive Trading Up 7.2%

The firm has a 50 day simple moving average of $15.26 and a 200 day simple moving average of $16.30. The company has a current ratio of 2.10, a quick ratio of 1.64 and a debt-to-equity ratio of 1.00. The firm has a market capitalization of $20.23 billion, a PE ratio of -5.58 and a beta of 1.64.

Insider Buying and Selling at Rivian Automotive

In other Rivian Automotive news, CEO Robert J. Scaringe sold 21,446 shares of the stock in a transaction on Tuesday, April 14th. The stock was sold at an average price of $16.17, for a total transaction of $346,781.82. Following the sale, the chief executive officer directly owned 1,001,138 shares in the company, valued at approximately $16,188,401.46. This trade represents a 2.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 5,544 shares of the stock in a transaction on Monday, May 18th. The shares were sold at an average price of $13.43, for a total value of $74,455.92. Following the sale, the chief financial officer owned 902,630 shares in the company, valued at approximately $12,122,320.90. This represents a 0.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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. Over the last quarter, insiders have sold 92,399 shares of company stock worth $1,443,578. Company insiders own 2.16% of the company’s stock.

Institutional Trading of Rivian Automotive

Several institutional investors have recently added to or reduced their stakes in RIVN. Norges Bank purchased a new stake in Rivian Automotive during the 4th quarter valued at $220,323,000. Renaissance Technologies LLC boosted its stake in shares of Rivian Automotive by 32.4% in the 4th quarter. Renaissance Technologies LLC now owns 16,397,496 shares of the electric vehicle automaker’s stock worth $323,195,000 after buying an additional 4,012,386 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of Rivian Automotive by 3.3% in the 3rd quarter. Vanguard Group Inc. now owns 81,673,512 shares of the electric vehicle automaker’s stock worth $1,198,967,000 after buying an additional 2,597,310 shares during the last quarter. Capital International Investors boosted its stake in shares of Rivian Automotive by 13.2% in the 4th quarter. Capital International Investors now owns 20,769,844 shares of the electric vehicle automaker’s stock worth $409,374,000 after buying an additional 2,418,717 shares during the last quarter. Finally, AQR Capital Management LLC boosted its stake in shares of Rivian Automotive by 496.6% in the 2nd quarter. AQR Capital Management LLC now owns 2,305,236 shares of the electric vehicle automaker’s stock worth $31,490,000 after buying an additional 1,918,852 shares during the last quarter. 66.25% of the stock is currently owned by hedge funds and other institutional investors.

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.