Rivian Automotive (NASDAQ:RIVN) Shares Up 1.1% – Still a Buy?

Rivian Automotive, Inc. (NASDAQ:RIVN) shares shot up 1.1% on Thursday . The company traded as high as $16.09 and last traded at $15.40. 25,537,713 shares were traded during mid-day trading, a decline of 14% from the average daily volume of 29,629,727 shares. The stock had previously closed at $15.23.

Rivian Automotive News Summary

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

• Positive Sentiment: Rivian was cited as a beaten-down stock with significant long-term upside potential. The bullish case centers on strong liquidity, improving gross profitability, limited shareholder dilution and successful execution of the upcoming R2 midsize SUV program. 2 Beaten-Down Stocks With Massive Upside Potential
• Positive Sentiment: Rivian shares also benefited from broader enthusiasm for the EV and autonomous-vehicle sector after Lucid announced a 25,000-vehicle European robotaxi agreement. The read-through is supportive for sentiment, although the deal’s details may limit its immediate financial impact on the industry. Lucid Surges on Robotaxi Deal
• Neutral Sentiment: Rivian will participate in Evercore’s ADAS, AV & AI Forum on September 29. The presentation by autonomy and AI executives could provide updates on technology and strategy, but it does not immediately change the company’s financial outlook. Rivian to Participate in Evercore ADAS, AV & AI Forum
• Neutral Sentiment: Citigroup initiated coverage of Rivian, adding fresh institutional research attention. The lack of a reported rating or price target makes the immediate market effect unclear. Rivian Coverage Initiated at Citigroup
• Negative Sentiment: Investors remain concerned that Rivian has not yet demonstrated the ability to manufacture vehicles at high volume. Citi said the longer-term investment case depends heavily on scaling the R2, keeping execution risk elevated. RIVN Stock Continues to Slide on Ramp Concerns
• Negative Sentiment: Insider Michael John Callahan sold 15,000 shares for approximately $244,350 under a pre-arranged Rule 10b5-1 plan. The planned nature of the transaction and his remaining ownership of more than 1 million shares reduce its significance, but the sale can still weigh modestly on sentiment amid the upcoming CFO transition. Rivian Insider Share Sale

Analysts Set New Price Targets

Several equities analysts have recently issued reports on RIVN shares. BNP Paribas Exane lifted their price target on Rivian Automotive from $22.00 to $24.00 and gave the company an “outperform” rating in a research report on Wednesday, July 8th. Needham & Company LLC restated a “buy” rating on shares of Rivian Automotive in a report on Monday, August 10th. Royal Bank Of Canada raised their target price on Rivian Automotive from $14.00 to $16.00 and gave the company a “sector perform” rating in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft lowered Rivian Automotive from a “buy” rating to an “underperform” rating in a report on Tuesday, August 4th. Finally, UBS Group boosted their price target on shares of Rivian Automotive from $16.00 to $17.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Twelve equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and seven have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $19.00.

Rivian Automotive Stock Performance

The company has a quick ratio of 1.65, a current ratio of 2.10 and a debt-to-equity ratio of 0.87. The stock has a market cap of $22.30 billion, a price-to-earnings ratio of -5.97 and a beta of 1.62. The company’s 50-day simple moving average is $16.26 and its 200-day simple moving average is $15.91.

Rivian Automotive (NASDAQ:RIVN) last announced its quarterly earnings data on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, beating analysts’ consensus estimates of ($0.66) by $0.03. Rivian Automotive had a negative return on equity of 73.90% and a negative net margin of 54.96%.The company had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same quarter in the prior year, the firm earned ($0.97) EPS. The company’s quarterly revenue was up 27.2% compared to the same quarter last year. Analysts predict that Rivian Automotive, Inc. will post -2.98 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Michael John Callahan sold 15,000 shares of the business’s stock in a transaction on Friday, September 11th. The stock was sold at an average price of $16.29, for a total transaction of $244,350.00. Following the sale, the insider directly owned 1,016,776 shares of the company’s stock, valued at $16,563,281.04. The trade was a 1.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire McDonough sold 13,144 shares of the company’s 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 sale, the chief financial officer directly owned 827,201 shares of the company’s stock, valued at approximately $11,994,414.50. This represents a 1.56% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 56,167 shares of company stock worth $963,306 in the last three months. 1.48% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in RIVN. Capital International Investors raised its holdings in shares of Rivian Automotive by 13.2% during the fourth quarter. Capital International Investors now owns 20,769,844 shares of the electric vehicle automaker’s stock valued at $409,374,000 after acquiring an additional 2,418,717 shares during the period. Geode Capital Management LLC lifted its position in shares of Rivian Automotive by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 14,782,865 shares of the electric vehicle automaker’s stock valued at $290,568,000 after acquiring an additional 59,503 shares in the last quarter. Norges Bank acquired a new position in Rivian Automotive in the 4th quarter worth approximately $220,323,000. Dimensional Fund Advisors LP grew its position in Rivian Automotive by 0.3% during 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 in the last quarter. Finally, Legal & General Group Plc grew its position in Rivian Automotive by 5.2% during the 4th quarter. Legal & General Group Plc now owns 4,536,169 shares of the electric vehicle automaker’s stock worth $89,408,000 after purchasing an additional 224,435 shares in the last quarter. 66.25% of the stock is currently owned by institutional investors and hedge funds.

Rivian Automotive Company Profile

Rivian Automotive, Inc designs, develops and manufactures electric vehicles and related technology. Its consumer vehicle lineup includes the R1T electric pickup truck and R1S electric SUV, which are designed for on-road and off-road use. The company also develops charging solutions, vehicle software and connected services intended to support the ownership and operation of its electric vehicles.

Rivian produces electric commercial vans for delivery and fleet applications, including vehicles developed through its relationship with Amazon.