Rivian Automotive (NASDAQ:RIVN) Stock Falls 1.2% – Time to Sell?

Rivian Automotive, Inc. (NASDAQ:RIVN) traded down 1.2% on Wednesday. The company traded as low as $13.46 and last traded at $13.54. Approximately 20,489,263 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 29,432,104 shares. The stock had previously closed at $13.70.

Recent Rivian Automotive Headlines

Here are a few of the latest headlines about RIVN:

• Positive Sentiment: CEO RJ Scaringe sees 2027 as an “inflection year,” pointing to the R2 and autonomy as growth drivers. The R2 was Rivian’s best-selling vehicle in the third quarter, and the company plans a limited rollout of its advanced driver-assistance system before a broader release in 2027. Article: Rivian CEO says new R2 SUV, autonomy make 2027 an ‘inflection year’
• Positive Sentiment: Rivian’s upgraded electric delivery vans could be more attractive to fleet buyers, raising the possibility of another large order, though no deal was announced. Article: Rivian’s Vans Got a Serious Upgrade. Could Another Major Fleet Deal Finally Follow?
• Negative Sentiment: Despite a 58% quarter-over-quarter increase in deliveries, automotive gross profit did not rise along with volume. Rivian is absorbing launch costs, while it has yet to benefit from additional shifts that could improve production efficiency. Article: Rivian’s Deliveries Jumped 58%. Why Didn’t Gross Profit Follow?

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the stock. Wells Fargo & Company lifted their price objective on shares of Rivian Automotive from $15.00 to $16.00 and gave the company an “equal weight” rating in a research note on Friday, July 31st. Yorkville Ives assumed coverage on shares of Rivian Automotive in a research note on Tuesday, October 6th. They issued an “outperform” rating and a $20.00 target price for the company. Morgan Stanley raised their price target on shares of Rivian Automotive from $13.00 to $14.00 and gave the company an “underweight” rating in a report on Friday, July 31st. Piper Sandler raised shares of Rivian Automotive from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $18.00 to $20.00 in a research note on Monday, July 27th. Finally, Cantor Fitzgerald cut their price objective on shares of Rivian Automotive from $19.00 to $16.00 and set a “neutral” rating on the stock in a report on Friday, October 30th. Fifteen equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $19.50.

Rivian Automotive Stock Down 1.2%

The stock has a market capitalization of $19.76 billion, a P/E ratio of -6.02 and a beta of 1.64. 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’s 50 day simple moving average is $14.12 and its 200 day simple moving average is $15.38.

Rivian Automotive (NASDAQ:RIVN) last issued its earnings results on Thursday, October 29th. The electric vehicle automaker reported ($0.48) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 business had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2 billion. During the same quarter in the prior year, the business posted ($1.08) EPS. The company’s revenue for the quarter was up 38.3% on a year-over-year basis. As a group, research analysts predict that Rivian Automotive, Inc. will post -2.72 EPS for the current fiscal year.

Insider Activity

In other Rivian Automotive news, insider Michael John Callahan sold 15,000 shares of the stock in a transaction that occurred on Thursday, October 1st. The stock was sold at an average price of $15.00, for a total transaction 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 trade represents a 1.48% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Claire McDonough sold 8,023 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.00, for a total value of $128,368.00. Following the transaction, the chief financial officer directly owned 819,178 shares in the company, valued at approximately $13,106,848. This represents a 0.97% 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. Over the last three months, insiders sold 51,167 shares of company stock valued at $788,306. 1.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Rivian Automotive

Several institutional investors and hedge funds have recently made changes to their positions in RIVN. Independent Financial Group LLC bought a new stake in Rivian Automotive during the first quarter valued at $985,000. Baird Financial Group Inc. lifted its position in shares of Rivian Automotive by 163.9% in the 2nd quarter. Baird Financial Group Inc. now owns 289,693 shares of the electric vehicle automaker’s stock worth $5,026,000 after buying an additional 179,913 shares during the last quarter. Mizuho Markets Americas LLC lifted its position in shares of Rivian Automotive by 16.1% in the 1st quarter. Mizuho Markets Americas LLC now owns 683,024 shares of the electric vehicle automaker’s stock worth $10,280,000 after buying an additional 94,840 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in shares of Rivian Automotive in the 2nd quarter valued at about $49,915,000. Finally, SEB Asset Management AB acquired a new position in shares of Rivian Automotive in the 1st quarter valued at about $2,561,000. 66.25% of the stock is owned by institutional investors and hedge funds.

About Rivian Automotive

Rivian Automotive, Inc. designs, develops and manufactures electric vehicles and related technology. Its consumer lineup includes the R1T electric pickup truck and R1S electric sport utility vehicle, while its commercial offerings include electric delivery vans and fleet services. Founded in 2009 by RJ Scaringe, the company began delivering its R1T and R1S vehicles in 2021. Rivian also develops vehicle software, charging solutions and services intended to support its consumer and commercial customers.