Rivian Automotive (NASDAQ:RIVN) Shares Down 6.6% – Should You Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN) dropped 6.6% on Tuesday . The company traded as low as $15.24 and last traded at $15.73. Approximately 38,747,764 shares were traded during trading, an increase of 29% from the average daily volume of 30,148,039 shares. The stock had previously closed at $16.84.

Rivian Automotive News Roundup

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

• Positive Sentiment: Rivian started first public deliveries of the all-new R2 mid-size SUV, a major milestone for its next-generation growth strategy and a potential driver of future revenue. Rivian Begins R2 Public Customer Deliveries, Opens Orders for Reservation Holders
• Positive Sentiment: Early reviews of the R2 have been favorable, which may support demand expectations and improve investor confidence in Rivian’s new vehicle lineup. Rivian’s R2 impresses reviewers as deliveries begin
• Positive Sentiment: Rivian also pulled forward its lower-priced $45,000 model to next summer, signaling a quicker push into a broader market and potentially larger long-term sales volume. Rivian is betting on its R2 EV to turn the automaker into a household name like Tesla
• Neutral Sentiment: Short-interest data showed no meaningful change, with reported short interest at zero shares, offering little new signal for traders. Rivian short interest update
• Negative Sentiment: Despite the R2 launch, some market coverage says Rivian’s stock has not rallied on the news, suggesting investors may still be skeptical about near-term execution and the path to profitability. Rivian’s Biggest Product Launch Yet Fails to Lift the Stock
• Negative Sentiment: Rivian also remains under a regulatory overhang after an NHTSA probe, which can weigh on sentiment around the stock. Here’s What Rivian Automotive Inc (RIVN) Said About the NHTSA Probe

Analysts Set New Price Targets

RIVN has been the subject of a number of research analyst reports. Wells Fargo & Company lifted their target price on Rivian Automotive from $12.00 to $15.00 and gave the company an “equal weight” rating in a research report on Friday, February 13th. Tigress Financial reaffirmed a “buy” rating and set a $25.00 target price on shares of Rivian Automotive in a research report on Friday, April 10th. Canaccord Genuity Group reaffirmed a “buy” rating and set a $22.00 target price on shares of Rivian Automotive in a research report on Monday, April 6th. UBS Group raised Rivian Automotive from a “sell” rating to a “neutral” rating and lifted their target price for the company from $15.00 to $16.00 in a research report on Friday, February 13th. Finally, Wall Street Zen raised Rivian Automotive from a “strong sell” rating to a “sell” rating in a research report on Sunday, May 10th. Twelve investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and six have given a Sell rating to the company. According to data from MarketBeat, Rivian Automotive currently has an average rating of “Hold” and a consensus target price of $18.57.

Rivian Automotive Trading Down 6.6%

The stock has a market capitalization of $19.52 billion, a P/E ratio of -5.39 and a beta of 1.62. 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 company has a 50-day moving average price of $15.48 and a 200 day moving average price of $16.35.

Insider Buying and Selling at Rivian Automotive

In other news, CFO Claire Mcdonough sold 10,245 shares of the business’s stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $18.00, for a total value of $184,410.00. Following the completion of the transaction, the chief financial officer directly owned 946,814 shares of the company’s stock, valued at approximately $17,042,652. The trade was a 1.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert J. Scaringe sold 34,818 shares of the business’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $15.00, for a total value of $522,270.00. Following the completion of the transaction, the chief executive officer directly owned 922,286 shares of the company’s stock, valued at approximately $13,834,290. The trade was a 3.64% 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. Over the last three months, insiders sold 117,790 shares of company stock valued at $1,832,466. Corporate insiders own 1.48% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in Rivian Automotive by 3.3% during 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 grew its stake in Rivian Automotive by 13.2% during 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. Renaissance Technologies LLC grew its stake in Rivian Automotive by 32.4% during 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. Geode Capital Management LLC grew its stake in Rivian Automotive by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 14,782,865 shares of the electric vehicle automaker’s stock worth $290,568,000 after buying an additional 59,503 shares during the last quarter. Finally, Norges Bank purchased a new position in Rivian Automotive during the 4th quarter worth $220,323,000. 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.