Rivian Automotive (NASDAQ:RIVN) Shares Down 1.3% – Time to Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price was down 1.3% during mid-day trading on Wednesday. The company traded as low as $11.44 and last traded at $11.67. Approximately 27,408,099 shares were traded during trading, a decline of 6% from the average daily volume of 29,008,969 shares. The stock had previously closed at $11.82.

Rivian Automotive News Summary

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

• Positive Sentiment: Rivian delivered a record 19,248 vehicles in the third quarter, a 46% year-over-year increase that reportedly exceeded expectations. Investors are also looking for further progress from the upcoming R2 platform, which is viewed as important to improving scale and margins. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
• Positive Sentiment: Volkswagen’s reported $1 billion loan and Rivian’s partnership provide additional financial runway, while software and services are generating better margins than vehicle manufacturing. Investors are also focused on Rivian’s autonomy technology and the potential for future software licensing revenue. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
• Positive Sentiment: A photograph of a Walmart-branded Rivian delivery van fueled speculation that Walmart could become a commercial-fleet customer. The report is unconfirmed, so any stock benefit depends on an actual order or partnership announcement. RIVN Stock Rebounds As Unconfirmed Walmart Delivery Van Sparks Fleet Hopes
• Neutral Sentiment: Rivian is scheduled to report third-quarter results after Thursday’s market close. The main catalysts will be deliveries, automotive gross margin, cash usage, R2 timing and management’s outlook for profitability. Rivian Reports Q3: Everything You Need to Know Ahead of Earnings
• Neutral Sentiment: Volkswagen’s planned Audi expansion and broader technology investments could support the automaker’s U.S. operations, but the developments have no immediate, direct impact on Rivian’s financial results. Volkswagen Bets $4B on Audi’s U.S. Expansion
• Neutral Sentiment: An AutoCamp financing announcement mentioned Rivian among its brand collaborators, but provided no material new business or financial information for Rivian. AutoCamp’s Collaborations Span Travel, Hospitality and Outdoor Recreation
• Negative Sentiment: Reports that Volkswagen may use XPeng’s software for some European EVs raise concern that Rivian could capture less software revenue from its Volkswagen partnership. Rivian is also increasing autonomy investment, adding execution risk before those initiatives generate meaningful returns. Volkswagen Software Doubts Might Change the Case for Investing in Rivian
• Negative Sentiment: Automotive gross profit remained negative at $36 million in the second quarter, underscoring Rivian’s continuing margin challenges and cash-burn risk despite improving deliveries. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time

Analyst Ratings Changes

RIVN has been the topic of a number of research reports. Morgan Stanley boosted their target price on shares of Rivian Automotive from $13.00 to $14.00 and gave the stock an “underweight” rating in a report on Friday, July 31st. Cantor Fitzgerald restated a “neutral” rating on shares of Rivian Automotive in a research report on Monday, September 28th. Citigroup initiated coverage on Rivian Automotive in a research report on Monday, September 14th. They issued a “hold” rating and a $18.00 price target for the company. Deutsche Bank Aktiengesellschaft cut Rivian Automotive from a “buy” rating to an “underperform” rating in a research note on Tuesday, August 4th. Finally, TD Cowen upped their price objective on Rivian Automotive from $20.00 to $21.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Thirteen analysts have rated the stock with a Buy rating, nine have given a Hold rating and five have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $19.86.

Rivian Automotive Price 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 firm’s 50 day simple moving average is $14.75 and its 200 day simple moving average is $15.61. The company has a market capitalization of $16.90 billion, a PE ratio of -4.52 and a beta of 1.62.

Rivian Automotive (NASDAQ:RIVN) last posted its quarterly earnings data on Thursday, July 30th. The electric vehicle automaker reported ($0.63) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.66) by $0.03. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. The company had revenue of $1.66 billion for the quarter, compared to analyst estimates of $1.52 billion. During the same period in the prior year, the company posted ($0.97) EPS. The firm’s revenue for the quarter was up 27.2% on a year-over-year basis. As a group, research analysts anticipate that Rivian Automotive, Inc. will post -2.92 EPS for the current fiscal year.

Insider Activity

In other Rivian Automotive news, CFO Claire McDonough sold 13,144 shares of the business’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total value of $190,588.00. Following the completion of the sale, the chief financial officer directly owned 827,201 shares of the company’s stock, valued at $11,994,414.50. The trade was a 1.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 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. Also, insider Michael John Callahan sold 15,000 shares of the business’s stock in a transaction dated 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 sale, the insider directly owned 1,001,776 shares of the company’s stock, valued at approximately $15,026,640. This trade represents a 1.48% 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. Insiders sold a total of 51,167 shares of company stock worth $788,306 in the last ninety days. 1.48% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Rivian Automotive

A number of institutional investors have recently modified their holdings of RIVN. Partners Wealth Management LLC bought a new position in Rivian Automotive in the third quarter worth about $297,000. North Dakota State Investment Board lifted its position in shares of Rivian Automotive by 18.8% during the third quarter. North Dakota State Investment Board now owns 28,058 shares of the electric vehicle automaker’s stock valued at $419,000 after buying an additional 4,431 shares during the last quarter. Asset Management One Co. Ltd. lifted its position in shares of Rivian Automotive by 9.7% during the third quarter. Asset Management One Co. Ltd. now owns 432,051 shares of the electric vehicle automaker’s stock valued at $6,455,000 after buying an additional 38,205 shares during the last quarter. Westover Capital Advisors LLC bought a new stake in shares of Rivian Automotive in the 3rd quarter valued at about $433,000. Finally, Apollon Wealth Management LLC bought a new stake in shares of Rivian Automotive in the 3rd quarter valued at about $160,000. 66.25% of the stock is owned by hedge funds and other institutional investors.

Rivian Automotive Company Profile

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.