Stock Traders Buy High Volume of Call Options on Rivian Automotive (NASDAQ:RIVN)

Rivian Automotive, Inc. (NASDAQ:RIVN) was the recipient of some unusual options trading activity on Friday. Stock traders bought 153,283 call options on the stock. This represents an increase of approximately 18% compared to the average daily volume of 129,402 call options.

More Rivian Automotive News

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

• Positive Sentiment: Rivian reported second-quarter revenue of $1.66 billion, up 27.2% year over year and above the approximately $1.52 billion analyst estimate. Its adjusted loss of $0.47 per share was narrower than the expected $0.65–$0.66 loss. Rivian beats quarterly revenue estimates as R2 launch, software business gain traction
• Positive Sentiment: The company began customer deliveries of its lower-priced R2 SUV, said demand and conversion rates are exceeding internal expectations, and maintained its 65,000-to-70,000-vehicle delivery target while raising aspects of its full-year outlook. Management views R2 as important to future volume and profitability.
• Positive Sentiment: Rivian reduced its 2026 spending plans, narrowed its expected annual loss, and highlighted growth in its software business, including benefits from its Volkswagen partnership. Rivian reduces 2026 spending plans, narrows earnings guidance
• Positive Sentiment: Needham reaffirmed a Buy rating with a $23 price target, while TD Cowen raised its target to $21 and kept a Buy rating. Elevated call-option activity also suggests increased speculative interest.
• Neutral Sentiment: Analyst opinion remains divided. Royal Bank of Canada raised its target to $16 with a Sector Perform rating, Wells Fargo lifted its target to $16 with Equal Weight, and Morgan Stanley raised its target to $14 while retaining an Underweight rating.
• Negative Sentiment: The earnings beat did not resolve concerns about automotive margins, cash usage, and Rivian’s continuing large losses. The company remains unprofitable, and management acknowledged that Chinese EV manufacturers have significant cost and capital advantages.
• Negative Sentiment: Investors appear to be taking profits or reassessing valuation after the results, with broader EV-sector weakness adding pressure. The market is likely demanding evidence that the R2 ramp can translate into sustainable margins rather than merely higher deliveries.

Analyst Ratings Changes

RIVN has been the topic of a number of research reports. Wall Street Zen raised Rivian Automotive from a “sell” rating to a “hold” rating in a report on Saturday. Wells Fargo & Company upped their price objective on Rivian Automotive from $15.00 to $16.00 and gave the company an “equal weight” rating in a research note on Friday. TD Cowen increased their price objective on Rivian Automotive from $20.00 to $21.00 and gave the stock a “buy” rating in a research report on Friday. Cantor Fitzgerald reiterated a “neutral” rating and issued a $19.00 target price on shares of Rivian Automotive in a research note on Tuesday. Finally, UBS Group boosted their target price on Rivian Automotive from $16.00 to $17.00 and gave the company a “neutral” rating in a report on Thursday, July 9th. Thirteen investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and six have given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $18.95.

Rivian Automotive Stock Down 9.6%

RIVN opened at $15.22 on Friday. The company has a debt-to-equity ratio of 1.00, a current ratio of 2.10 and a quick ratio of 1.64. The business has a 50 day simple moving average of $16.58 and a 200-day simple moving average of $15.89. The stock has a market capitalization of $20.72 billion, a P/E ratio of -5.90 and a beta of 1.60. Rivian Automotive has a 12 month low of $11.57 and a 12 month high of $22.69.

Rivian Automotive (NASDAQ:RIVN) last posted its quarterly earnings results on Thursday, April 30th. The electric vehicle automaker reported ($0.55) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.60) by $0.05. Rivian Automotive had a negative return on equity of 75.57% and a negative net margin of 54.96%.The firm had revenue of $1.38 billion for the quarter, compared to the consensus estimate of $1.37 billion. During the same period in the previous year, the business earned ($0.48) earnings per share. The company’s revenue for the quarter was up 11.4% compared to the same quarter last year. On average, equities analysts anticipate that Rivian Automotive will post -3.06 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Robert J. Scaringe sold 34,818 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $15.00, for a total transaction of $522,270.00. Following the completion of the sale, the chief executive officer owned 922,286 shares in the company, valued at $13,834,290. This represents a 3.64% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 8,023 shares of the firm’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $16.00, for a total transaction of $128,368.00. Following the transaction, the chief financial officer directly owned 887,007 shares in the company, valued at $14,192,112. The trade was a 0.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 68,385 shares of company stock worth $1,125,094 in the last 90 days. Company insiders own 1.48% of the company’s stock.

Hedge Funds Weigh In On Rivian Automotive

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Danske Bank A S lifted its stake in shares of Rivian Automotive by 36.8% in the fourth quarter. Danske Bank A S now owns 613,993 shares of the electric vehicle automaker’s stock valued at $12,102,000 after purchasing an additional 165,300 shares during the period. Trek Financial LLC acquired a new position in Rivian Automotive during the fourth quarter worth about $6,115,000. Independent Financial Group LLC acquired a new position in Rivian Automotive during the first quarter worth about $985,000. Swedbank AB increased its holdings in Rivian Automotive by 8.6% in the fourth quarter. Swedbank AB now owns 941,304 shares of the electric vehicle automaker’s stock valued at $18,553,000 after buying an additional 74,322 shares in the last quarter. Finally, Fjarde AP Fonden Fourth Swedish National Pension Fund increased its holdings in Rivian Automotive by 34.9% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 348,800 shares of the electric vehicle automaker’s stock valued at $5,249,000 after buying an additional 90,200 shares in the last quarter. 66.25% of the stock is owned by institutional investors and hedge funds.

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.