Rivian Automotive (NASDAQ:RIVN) Shares Down 3% – Should You Sell?

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) dropped 3% during trading on Monday. The company traded as low as $13.48 and last traded at $13.54. 19,733,807 shares traded hands during trading, a decline of 33% from the average daily volume of 29,344,227 shares. The stock had previously closed at $13.96.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on RIVN. BNP Paribas Exane raised their price target on Rivian Automotive from $22.00 to $24.00 and gave the company an “outperform” rating in a research note on Wednesday, July 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rivian Automotive in a report on Friday, October 2nd. Morgan Stanley upped their price objective on Rivian Automotive from $13.00 to $14.00 and gave the stock an “underweight” rating in a research report on Friday, July 31st. UBS Group upped their price objective on Rivian Automotive from $16.00 to $17.00 and gave the stock a “neutral” rating in a research report on Thursday, July 9th. Finally, Wall Street Zen upgraded Rivian Automotive from a “sell” rating to a “hold” rating in a report on Saturday, September 19th. Twelve research analysts have rated the stock with a Buy rating, nine have given a Hold rating and seven have issued a Sell rating to the stock. According to MarketBeat, Rivian Automotive currently has a consensus rating of “Hold” and a consensus price target of $19.00.

Rivian Automotive Stock Down 3.1%

The firm’s 50-day moving average price is $15.45 and its two-hundred day moving average price is $15.80. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10. The firm has a market cap of $18.75 billion, a PE ratio of -5.02 and a beta of 1.62.

Rivian Automotive (NASDAQ:RIVN) last posted its earnings results on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, beating 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 firm had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.52 billion. During the same period last year, the firm posted ($0.97) EPS. The company’s revenue was up 27.2% on a year-over-year basis. As a group, equities research analysts expect that Rivian Automotive, Inc. will post -2.95 EPS for the current fiscal year.

Insider Activity

In other news, CFO Claire McDonough sold 13,144 shares of Rivian Automotive stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $14.50, for a total transaction of $190,588.00. Following the sale, the chief financial officer owned 827,201 shares in the company, valued at approximately $11,994,414.50. The trade was a 1.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible 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 business’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 of the company’s stock, valued at $15,026,640. The trade was a 1.48% 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. In the last ninety days, insiders have sold 51,167 shares of company stock worth $788,306. Corporate insiders own 1.48% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in RIVN. MCF Advisors LLC increased its stake in Rivian Automotive by 3,500.0% in the second quarter. MCF Advisors LLC now owns 1,800 shares of the electric vehicle automaker’s stock valued at $31,000 after purchasing an additional 1,750 shares during the period. Ancora Advisors LLC acquired a new stake in shares of Rivian Automotive during the second quarter worth about $44,000. Oslo Pensjonsforsikring AS acquired a new stake in shares of Rivian Automotive during the first quarter worth about $39,000. Osbon Capital Management LLC purchased a new position in shares of Rivian Automotive during the fourth quarter worth about $57,000. Finally, Continuum Advisory LLC purchased a new position in shares of Rivian Automotive during the second quarter worth about $75,000. Hedge funds and other institutional investors 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.