Rivian Automotive (NASDAQ:RIVN) Shares Climb 5.8% – Here’s What Happened

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price traded up 5.8% during mid-day trading on Wednesday. The company traded as high as $14.31 and last traded at $14.06. 41,933,849 shares changed hands during mid-day trading, an increase of 42% from the average daily volume of 29,461,844 shares. The stock had previously closed at $13.29.

Trending Headlines about Rivian Automotive

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

• Positive Sentiment: Sales of Rivian’s lower-priced model are reportedly ahead of expectations, a potentially important sign that the company can broaden demand beyond its premium vehicles. Did I Call the Bottom With Rivian Stock?
• Positive Sentiment: Investors are also weighing whether improving expected cash flow could support Rivian’s valuation. The article notes recent bank upgrades, although it frames the valuation question as unresolved. Is Rivian Automotive (RIVN) A Bargain As Cash Flow Improves?
• Positive Sentiment: The R2 has received recognition from Top Gear and MotorTrend, which may help build awareness ahead of Rivian’s planned European entry. Awards are supportive publicity, but do not by themselves guarantee sales. Rivian’s R2 Is Winning More Than Trophies and Fans
• Neutral Sentiment: A Trefis article highlights the question of who is financing Rivian’s cash burn, keeping funding needs in focus without the supplied summary providing further details. Who Is Paying For Rivian’s Cash Burn?
• Negative Sentiment: DA Davidson cut its price target from $17 to $15 and maintained a neutral rating. The revised target still implies upside from the cited share price, but the reduction signals a more cautious view. Tickerreport.com coverage of DA Davidson’s rating

Analysts Set New Price Targets

Several equities analysts recently commented on RIVN shares. Needham & Company LLC reduced their price objective on shares of Rivian Automotive from $23.00 to $18.00 and set a “buy” rating for the company in a research note on Friday, October 30th. Morgan Stanley increased their target price 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. TD Cowen increased their target price on shares of Rivian Automotive from $20.00 to $21.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Cantor Fitzgerald cut their price target on shares of Rivian Automotive from $19.00 to $16.00 and set a “neutral” rating for the company in a report on Friday, October 30th. Finally, Jefferies Financial Group upgraded shares of Rivian Automotive from a “hold” rating to a “buy” rating and set a $17.00 price target for the company in a research report on Friday, October 30th. Fifteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, Rivian Automotive presently has a consensus rating of “Hold” and a consensus target price of $19.50.

Rivian Automotive Stock Up 2.4%

The company has a current ratio of 2.18, a quick ratio of 1.70 and a debt-to-equity ratio of 0.78. The stock has a 50-day moving average price of $14.21 and a 200-day moving average price of $15.40.

Rivian Automotive (NASDAQ:RIVN) last posted its quarterly earnings data on Thursday, October 29th. The electric vehicle automaker reported ($0.48) earnings per share for the quarter, topping the consensus estimate of ($0.64) by $0.16. Rivian Automotive had a negative net margin of 45.88% and a negative return on equity of 69.68%. The company had revenue of $2.15 billion for the quarter, compared to analysts’ expectations of $2 billion. During the same period in the prior year, the business earned ($1.08) earnings per share. Rivian Automotive’s revenue for the quarter was up 38.3% compared to the same quarter last year. On average, equities analysts forecast that Rivian Automotive, Inc. will post -2.72 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Michael John Callahan sold 15,000 shares of the 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 transaction, the insider owned 1,001,776 shares of the company’s stock, valued at $15,026,640. This represents a 1.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire McDonough sold 13,144 shares of the firm’s stock in a transaction on Tuesday, August 18th. The shares were 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. This trade represents a 1.56% decrease in their position. The SEC filing for this sale provides additional information. 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. Insiders sold a total of 51,167 shares of company stock worth $788,306 in the last three months. Insiders own 1.48% of the company’s stock.

Institutional Investors Weigh In On Rivian Automotive

Several hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP raised its holdings in shares of Rivian Automotive by 0.3% during the first quarter. Dimensional Fund Advisors LP now owns 7,438,776 shares of the electric vehicle automaker’s stock valued at $111,896,000 after acquiring an additional 25,382 shares in the last quarter. Hsbc Holdings PLC lifted its stake in Rivian Automotive by 55.8% in the first quarter. Hsbc Holdings PLC now owns 3,097,836 shares of the electric vehicle automaker’s stock worth $46,625,000 after acquiring an additional 1,109,171 shares during the period. Bank of New York Mellon Corp purchased a new stake in Rivian Automotive in the second quarter worth $49,915,000. Swiss National Bank boosted its holdings in Rivian Automotive by 8.2% in the first quarter. Swiss National Bank now owns 2,331,000 shares of the electric vehicle automaker’s stock valued at $35,082,000 after acquiring an additional 176,500 shares in the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. boosted its holdings in Rivian Automotive by 22.1% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,970,637 shares of the electric vehicle automaker’s stock valued at $29,441,000 after acquiring an additional 356,540 shares in the last quarter. Institutional investors own 66.25% of the company’s stock.

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.