Rivian Automotive (NASDAQ:RIVN) Stock Price Up 2.4% – Here’s Why

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price traded up 2.4% during trading on Friday. The company traded as high as $13.65 and last traded at $13.61. 20,072,244 shares were traded during mid-day trading, a decline of 32% from the average daily volume of 29,504,625 shares. The stock had previously closed at $13.29.

Key Stories 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

Several analysts have weighed in on RIVN shares. Piper Sandler upgraded Rivian Automotive from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $18.00 to $20.00 in a research report on Monday, July 27th. Stifel Nicolaus set a $22.00 target price on shares of Rivian Automotive in a report on Monday, August 24th. Wells Fargo & Company lifted their target price on shares of Rivian Automotive from $15.00 to $16.00 and gave the stock an “equal weight” rating in a research note on Friday, July 31st. Wall Street Zen lowered shares of Rivian Automotive from a “hold” rating to a “sell” rating in a report on Saturday, October 31st. Finally, Citigroup assumed coverage on shares of Rivian Automotive in a report on Monday, September 14th. They set a “hold” rating and a $18.00 price target for the company. Fifteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, Rivian Automotive currently has an average rating of “Hold” and a consensus price target of $19.50.

Rivian Automotive Stock Up 2.4%

The company has a debt-to-equity ratio of 0.78, a current ratio of 2.18 and a quick ratio of 1.70. The company has a market capitalization of $19.71 billion, a P/E ratio of -6.05 and a beta of 1.64. The company has a 50 day moving average of $14.21 and a 200-day moving average of $15.40.

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

Insider Buying and Selling

In other news, insider Michael John Callahan sold 15,000 shares of the business’s stock in a transaction that occurred 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 transaction, the insider directly owned 1,001,776 shares of the company’s stock, valued at approximately $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 accessible 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 that occurred on Thursday, August 20th. The shares were sold at an average price of $16.00, for a total value of $128,368.00. Following the transaction, the chief financial officer directly owned 819,178 shares in the company, valued at $13,106,848. This trade represents a 0.97% 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 quarter, insiders sold 51,167 shares of company stock worth $788,306. Corporate insiders own 1.48% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Jacobi Capital Management LLC bought a new position in Rivian Automotive in the 3rd quarter worth $25,000. MCF Advisors LLC lifted its position in shares of Rivian Automotive by 3,500.0% in the 2nd 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 period. Ancora Advisors LLC purchased a new stake in shares of Rivian Automotive in the 2nd quarter worth about $44,000. Oslo Pensjonsforsikring AS bought a new stake in shares of Rivian Automotive during the 1st quarter valued at about $39,000. Finally, Heritage Family Offices LLP bought a new stake in shares of Rivian Automotive during the 3rd quarter valued at about $49,000. 66.25% of the stock is 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 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.