Rivian Automotive (NASDAQ:RIVN) Shares Down 3.5% – Here’s What Happened

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) were down 3.5% during trading on Friday . The stock traded as low as $17.48 and last traded at $17.48. Approximately 40,014,512 shares were traded during trading, an increase of 25% from the average session volume of 32,109,078 shares. The stock had previously closed at $18.12.

Rivian Automotive News Summary

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

• Positive Sentiment: A new California tax incentive could boost demand for Rivian’s more affordable R2 model, and investors are speculating that other states may follow suit. Rivian Is Getting a Boost From California. Could Other States Follow Suit?
• Positive Sentiment: UBS lifted its price target on Rivian to $17 and other recent commentary has pointed to improving sentiment around the R2 growth story. Rivian Automotive (NASDAQ:RIVN) Given New $17.00 Price Target at UBS Group
• Positive Sentiment: Analyst and media coverage has also highlighted Rivian’s stronger-than-expected delivery trends and raised full-year outlook, which supports the longer-term bull case. Rivian Shares Jump as Stifel Raises Price Target on R2 Optimism
• Neutral Sentiment: Rivian’s 75 million-share offering brought in needed capital to help fund manufacturing scale-up and the R2 launch, but it also remains a key topic for investors evaluating execution risk. Rivian’s 75 Million-Share Offering Turns the R2 Growth Story Into a Dilution Test
• Negative Sentiment: The main near-term overhang is dilution from the equity raise, which has sparked concern that Rivian still needs outside funding before it can scale profitably. Rivian’s 75 Million-Share Offering Turns the R2 Growth Story Into a Dilution Test
• Negative Sentiment: Jim Cramer also flagged Rivian’s discounted capital raise as part of a broader warning about stock offerings and debt issuance, which may be adding to investor caution. Jim Cramer Shows Dislike for the Discounted Capital Raise From Rivian

Analysts Set New Price Targets

A number of brokerages have weighed in on RIVN. Weiss Ratings upgraded shares of Rivian Automotive from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday. UBS Group raised their target price on Rivian Automotive from $16.00 to $17.00 and gave the company a “neutral” rating in a research report on Thursday. Needham & Company LLC restated a “buy” rating and issued a $23.00 price target on shares of Rivian Automotive in a research note on Wednesday, June 10th. Wall Street Zen raised Rivian Automotive from a “strong sell” rating to a “sell” rating in a report on Sunday, May 10th. Finally, Tigress Financial reiterated a “buy” rating and set a $25.00 price target on shares of Rivian Automotive in a research report on Friday, April 10th. Twelve equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and six have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $18.81.

Rivian Automotive Stock Performance

The stock has a market cap of $21.69 billion, a price-to-earnings ratio of -5.99 and a beta of 1.60. The firm’s 50-day moving average is $15.75 and its two-hundred day moving average is $16.23. The company has a current ratio of 2.10, a quick ratio of 1.64 and a debt-to-equity ratio of 1.00.

Rivian Automotive (NASDAQ:RIVN) last posted its quarterly earnings data on Thursday, April 30th. The electric vehicle automaker reported ($0.55) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.60) by $0.05. Rivian Automotive had a negative return on equity of 75.65% and a negative net margin of 63.62%.The company had revenue of $1.38 billion for the quarter, compared to analysts’ expectations of $1.37 billion. During the same period in the previous year, the firm posted ($0.48) EPS. Rivian Automotive’s revenue was up 11.4% compared to the same quarter last year. As a group, sell-side analysts expect that Rivian Automotive, Inc. will post -3.09 earnings per share for the current year.

Insider Activity

In related news, CEO Robert J. Scaringe sold 34,818 shares of the stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $15.00, for a total value of $522,270.00. Following the completion of the transaction, the chief executive officer directly owned 922,286 shares of the company’s stock, valued at approximately $13,834,290. This represents a 3.64% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire Mcdonough sold 10,245 shares of the firm’s stock in a transaction on Wednesday, April 22nd. The shares were sold at an average price of $18.00, for a total value of $184,410.00. Following the completion of the transaction, the chief financial officer owned 946,814 shares in the company, valued at $17,042,652. The trade was a 1.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 100,076 shares of company stock worth $1,656,286 over the last quarter. 1.48% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Rivian Automotive

A number of large investors have recently modified their holdings of the business. Capital International Investors raised its position in shares of Rivian Automotive by 13.2% in 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 buying an additional 2,418,717 shares during the last quarter. Renaissance Technologies LLC boosted its position in Rivian Automotive by 32.4% during the fourth quarter. Renaissance Technologies LLC now owns 16,397,496 shares of the electric vehicle automaker’s stock worth $323,195,000 after acquiring an additional 4,012,386 shares during the last quarter. Geode Capital Management LLC grew its stake in Rivian Automotive by 0.4% during 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 purchased a new stake in Rivian Automotive during the 4th quarter valued at about $220,323,000. Finally, Soma Equity Partners LP raised its holdings in Rivian Automotive by 9.9% in the 3rd quarter. Soma Equity Partners LP now owns 9,204,745 shares of the electric vehicle automaker’s stock valued at $135,126,000 after acquiring an additional 829,782 shares during the last quarter. Hedge funds and other institutional investors own 66.25% of the company’s stock.

Rivian Automotive Company Profile

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.