Rivian Automotive (NASDAQ:RIVN) Shares Climb 3.4% – Here’s Why

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price shot up 3.4% during trading on Tuesday. The company traded as high as $12.09 and last traded at $11.82. 34,955,715 shares traded hands during trading, an increase of 20% from the average daily volume of 29,011,197 shares. The stock had previously closed at $11.43.

Wall Street Analysts Forecast Growth

RIVN has been the subject of several analyst reports. BNP Paribas Exane lifted their price objective on Rivian Automotive from $22.00 to $24.00 and gave the company an “outperform” rating in a report on Wednesday, July 8th. Citigroup assumed coverage on Rivian Automotive in a report on Monday, September 14th. They set a “hold” rating and a $18.00 target price on the stock. Stifel Nicolaus set a $22.00 price target on Rivian Automotive in a research report on Monday, August 24th. Yorkville Ives began coverage on Rivian Automotive in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $20.00 price target for the company. Finally, Jefferies Financial Group upped their price objective on shares of Rivian Automotive from $16.00 to $17.00 and gave the stock a “hold” rating in a research report on Tuesday, July 7th. Thirteen research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and five have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, Rivian Automotive has an average rating of “Hold” and a consensus price target of $19.86.

Rivian Automotive Price Performance

The firm has a market capitalization of $17.11 billion, a P/E ratio of -4.58 and a beta of 1.62. 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 business’s 50 day moving average is $14.81 and its 200-day moving average is $15.65.

Rivian Automotive (NASDAQ:RIVN) last released its earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.52 billion. During the same period in the prior year, the company earned ($0.97) earnings per share. The company’s quarterly revenue was up 27.2% on a year-over-year basis. As a group, sell-side analysts predict that Rivian Automotive, Inc. will post -2.94 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Claire McDonough sold 13,144 shares of the company’s stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $14.50, for a total transaction of $190,588.00. Following the completion of the sale, the chief financial officer directly owned 827,201 shares in the company, valued at $11,994,414.50. This represents a 1.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 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 firm’s stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $15.00, for a total value of $225,000.00. Following the completion of the sale, the insider directly owned 1,001,776 shares in the company, valued at $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 have sold a total of 51,167 shares of company stock valued at $788,306 in the last three months. 1.48% of the stock is owned by insiders.

Institutional Investors Weigh In On Rivian Automotive

A number of hedge funds have recently made changes to their positions in the stock. Asset Management One Co. Ltd. increased its position in Rivian Automotive by 9.7% during the 3rd quarter. Asset Management One Co. Ltd. now owns 432,051 shares of the electric vehicle automaker’s stock worth $6,455,000 after purchasing an additional 38,205 shares in the last quarter. Westover Capital Advisors LLC acquired a new stake in Rivian Automotive in the third quarter valued at approximately $433,000. Apollon Wealth Management LLC bought a new stake in shares of Rivian Automotive during the third quarter worth $160,000. Sterling Capital Management LLC grew its stake in shares of Rivian Automotive by 7.8% during the third quarter. Sterling Capital Management LLC now owns 24,281 shares of the electric vehicle automaker’s stock worth $363,000 after buying an additional 1,749 shares during the last quarter. Finally, Yousif Capital Management LLC increased its holdings in shares of Rivian Automotive by 12.5% during the third quarter. Yousif Capital Management LLC now owns 14,325 shares of the electric vehicle automaker’s stock worth $214,000 after buying an additional 1,589 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 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.