Rivian Automotive (NASDAQ:RIVN) Stock Falls 5.5% – Should You Sell?

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

Analysts Set New Price Targets

A number of research analysts have recently commented on RIVN shares. Piper Sandler upgraded Rivian Automotive from a “neutral” rating to an “overweight” rating and increased their target price for the company from $18.00 to $20.00 in a research report on Monday, July 27th. Weiss Ratings restated a “sell (d-)” rating on shares of Rivian Automotive in a research report on Friday, October 2nd. Yorkville Ives started coverage on shares of Rivian Automotive in a research note on Tuesday, October 6th. They set an “outperform” rating and a $20.00 price target on the stock. Deutsche Bank Aktiengesellschaft downgraded shares of Rivian Automotive from a “buy” rating to an “underperform” rating in a research note on Tuesday, August 4th. Finally, BNP Paribas Exane increased their price objective on shares of Rivian Automotive from $22.00 to $24.00 and gave the company an “outperform” rating in a research report on Wednesday, July 8th. Fifteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat.com, Rivian Automotive currently has an average rating of “Hold” and an average target price of $19.50.

Rivian Automotive Stock Performance

The firm has a market capitalization of $19.24 billion, a PE ratio of -5.91 and a beta of 1.64. The business has a 50-day simple moving average of $14.33 and a 200-day simple moving average of $15.43. The company has a debt-to-equity ratio of 0.78, a current ratio of 2.18 and a quick ratio of 1.70.

Rivian Automotive (NASDAQ:RIVN) last announced its earnings results on Thursday, October 29th. The electric vehicle automaker reported ($0.48) EPS for the quarter, topping analysts’ consensus estimates of ($0.64) by $0.16. The firm 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 company’s quarterly revenue was up 38.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($1.08) EPS. Equities research analysts expect that Rivian Automotive, Inc. will post -2.89 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Rivian Automotive news, insider Michael John Callahan sold 15,000 shares of Rivian Automotive stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $15.00, for a total transaction of $225,000.00. Following the completion of the transaction, the insider directly owned 1,001,776 shares of the company’s stock, valued at $15,026,640. The trade was a 1.48% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire McDonough sold 8,023 shares of the business’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 transaction, the chief financial officer owned 819,178 shares in the company, valued at $13,106,848. This trade represents a 0.97% 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. Over the last 90 days, insiders sold 51,167 shares of company stock valued at $788,306. 1.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Rivian Automotive

A number of large investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP raised its position in Rivian Automotive by 0.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,438,776 shares of the electric vehicle automaker’s stock worth $111,896,000 after purchasing an additional 25,382 shares during the period. Hsbc Holdings PLC lifted its stake in Rivian Automotive by 55.8% in the first quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker’s stock worth $46,625,000 after purchasing an additional 1,109,171 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Rivian Automotive during the second quarter valued at approximately $49,915,000. Swiss National Bank boosted its position in shares of Rivian Automotive by 8.2% during the first quarter. Swiss National Bank now owns 2,331,000 shares of the electric vehicle automaker’s stock valued at $35,082,000 after buying an additional 176,500 shares during the period. Finally, Sumitomo Mitsui Trust Group Inc. grew its stake in shares of 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 last quarter. 66.25% of the stock is owned by hedge funds and other institutional investors.

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.