Rivian Automotive (NASDAQ:RIVN) Shares Down 1.2% – Should You Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN) fell 1.2% during mid-day trading on Wednesday. The stock traded as low as $14.10 and last traded at $14.34. 21,870,250 shares traded hands during trading, a decline of 26% from the average session volume of 29,411,492 shares. The stock had previously closed at $14.51.

Key Headlines Impacting Rivian Automotive

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

• Positive Sentiment: Volkswagen funding reduces near-term financing risk. Rivian received the full $1 billion commitment under its joint venture with Volkswagen. The capital can support general corporate needs and technology development, including future lower-priced models. Rivian gets $1bn long-term funding from Volkswagen
• Positive Sentiment: Lower-priced vehicles are supporting deliveries. Rivian’s latest quarterly production and delivery report indicated that sales of its more affordable models are lifting overall deliveries, an important signal for the company’s planned R2 expansion. Rivian Reports Quarterly Production and Delivery Numbers
• Neutral Sentiment: Brand marketing is receiving attention. A Halloween campaign featuring Bill Murray and the “Ghostbusters” brand could improve awareness, but its effect on vehicle sales and financial results remains uncertain. Rivian taps Bill Murray and Ghostbusters for a much-needed brand boost
• Neutral Sentiment: Analyst sentiment remains mixed. Some analysts view Volkswagen’s financing and rising oil prices as potential supports, while others remain concerned about slowing EV demand and Rivian’s path to profitability. Analysts Have Conflicting Sentiments on Rivian Automotive
• Negative Sentiment: Investors are questioning Rivian’s valuation and financial outlook. Despite the new funding and delivery growth, the company continues to report substantial automotive losses and cash burn. Commentary that the stock may be overvalued relative to current revenue is adding pressure. Rivian Stock May Be Overvalued Despite Fresh Funding News
• Negative Sentiment: RIVN is lagging the broader EV trade. Chinese EV shares and Tesla are gaining attention, while Rivian is moving lower, highlighting investor preference for companies with stronger current sales momentum or clearer near-term catalysts. Nio Jumps as Chinese EV Names Rally; Rivian Slips

Analyst Ratings Changes

A number of research analysts recently commented on the company. Jefferies Financial Group upped their price objective on Rivian Automotive from $16.00 to $17.00 and gave the stock a “hold” rating in a research note on Tuesday, July 7th. Deutsche Bank Aktiengesellschaft downgraded Rivian Automotive from a “buy” rating to an “underperform” rating in a research report on Tuesday, August 4th. Needham & Company LLC reaffirmed a “buy” rating on shares of Rivian Automotive in a research note on Monday, August 10th. Morgan Stanley lifted their price objective on shares of Rivian Automotive from $13.00 to $14.00 and gave the stock an “underweight” rating in a research note on Friday, July 31st. Finally, Piper Sandler upgraded shares of Rivian Automotive from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $18.00 to $20.00 in a report on Monday, July 27th. Twelve research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and seven have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $19.00.

Rivian Automotive Stock Down 2.6%

The firm has a 50-day moving average of $15.55 and a two-hundred day moving average of $15.84. 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 capitalization of $20.21 billion, a price-to-earnings ratio of -5.42 and a beta of 1.62.

Rivian Automotive (NASDAQ:RIVN) last posted its quarterly earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, topping the consensus estimate 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 business had revenue of $1.66 billion during the quarter, compared to analysts’ expectations of $1.52 billion. During the same period last year, the company posted ($0.97) earnings per share. The firm’s quarterly revenue was up 27.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Rivian Automotive, Inc. will post -2.96 earnings per share for the current year.

Insider Activity

In related news, insider Michael John Callahan sold 15,000 shares of the company’s stock in a transaction on 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 approximately $15,026,640. This represents a 1.48% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 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 that occurred on Thursday, August 20th. The shares were sold at an average price of $16.00, for a total value of $128,368.00. Following the completion of the transaction, the chief financial officer directly owned 819,178 shares in the company, valued at $13,106,848. The trade was a 0.97% 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. Over the last quarter, insiders have sold 51,167 shares of company stock valued at $788,306. 1.48% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of RIVN. MCF Advisors LLC grew its holdings in Rivian Automotive by 3,500.0% in the 2nd quarter. MCF Advisors LLC now owns 1,800 shares of the electric vehicle automaker’s stock valued at $31,000 after buying an additional 1,750 shares during the last quarter. Ancora Advisors LLC acquired a new stake in shares of Rivian Automotive during the 2nd quarter worth approximately $44,000. Oslo Pensjonsforsikring AS bought a new stake in shares of Rivian Automotive during the first quarter valued at approximately $39,000. Osbon Capital Management LLC acquired a new position in shares of Rivian Automotive in the fourth quarter valued at $57,000. Finally, Continuum Advisory LLC bought a new position in shares of Rivian Automotive during the 2nd quarter worth about $75,000. Institutional investors and hedge funds own 66.25% of the company’s stock.

About Rivian Automotive

Rivian Automotive, Inc is an electric vehicle manufacturer focused on developing and producing vehicles designed for adventure, utility and commercial use. The company’s lineup includes the R1T electric pickup truck and R1S electric SUV, which feature all-electric powertrains, advanced driver-assistance technology and software-enabled vehicle systems.

Rivian also develops electric commercial vehicles, including delivery vans, along with vehicle software, charging solutions and related services.