Rivian Automotive (NASDAQ:RIVN) Shares Gap Down – What’s Next?

Rivian Automotive, Inc. (NASDAQ:RIVN)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $20.14, but opened at $17.67. Rivian Automotive shares last traded at $17.4130, with a volume of 19,299,983 shares.

Rivian Automotive News Summary

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

• Positive Sentiment: Analysts at BNP Paribas Exane raised their price target on Rivian to $24 and maintained an outperform rating, signaling confidence in longer-term upside despite the selloff.
• Positive Sentiment: Rivian’s Q2 delivery update was stronger than expected, and the company lifted its full-year delivery outlook, which supports the growth story for its upcoming R2 launch.
• Neutral Sentiment: Rivian’s latest article highlights that the new capital could help fund expansion, manufacturing capacity, and the R2 program, but investors are still waiting to see whether the added cash improves execution. Rivian’s 75 Million-Share Offering Turns the R2 Growth Story Into a Dilution Test
• Neutral Sentiment: Broader coverage notes that Rivian still has a solid revenue outlook and stronger cash position than before, but the company remains unprofitable and capital-intensive as it ramps production. Rivian’s 75 Million-Share Offering Turns the R2 Growth Story Into a Dilution Test
• Negative Sentiment: The share offering is the main overhang, as investors worry the new stock sale will dilute existing holders and signal that Rivian still needs substantial outside funding to support growth.
• Negative Sentiment: Several articles point to the selloff being driven by cash-burn concerns and the risk that Rivian must keep raising capital before its business can scale profitably.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on RIVN shares. Tigress Financial restated a “buy” rating and set a $25.00 target price on shares of Rivian Automotive in a research report on Friday, April 10th. Cantor Fitzgerald reiterated a “neutral” rating on shares of Rivian Automotive in a research note on Monday, June 15th. Weiss Ratings raised Rivian Automotive from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday. BNP Paribas Exane increased their target price on shares of Rivian Automotive from $22.00 to $24.00 and gave the stock an “outperform” rating in a research note on Wednesday. Finally, Wall Street Zen raised Rivian Automotive from a “strong sell” rating to a “sell” rating in a research note on Sunday, May 10th. Twelve equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and six have issued a Sell rating to the company’s stock. According to MarketBeat.com, Rivian Automotive currently has a consensus rating of “Hold” and a consensus price target of $18.76.

Rivian Automotive Stock Up 1.0%

The company has a debt-to-equity ratio of 1.00, a current ratio of 2.10 and a quick ratio of 1.64. The business’s 50 day moving average price is $15.71 and its 200 day moving average price is $16.26. The firm has a market cap of $20.67 billion, a PE ratio of -5.71 and a beta of 1.60.

Rivian Automotive (NASDAQ:RIVN) last issued its quarterly earnings results on Thursday, April 30th. The electric vehicle automaker reported ($0.55) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.60) by $0.05. Rivian Automotive had a negative net margin of 63.62% and a negative return on equity of 75.65%. The firm had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.37 billion. During the same period last year, the company posted ($0.48) EPS. Rivian Automotive’s quarterly revenue was up 11.4% compared to the same quarter last year. On average, equities research 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 RIVN. Newbridge Financial Services Group Inc. lifted its stake in shares of Rivian Automotive by 113.6% in the second quarter. Newbridge Financial Services Group Inc. now owns 1,880 shares of the electric vehicle automaker’s stock worth $26,000 after buying an additional 1,000 shares in the last quarter. Core Wealth Advisors LLC purchased a new stake in Rivian Automotive during the 4th quarter valued at about $27,000. SOA Wealth Advisors LLC. raised its holdings in Rivian Automotive by 894.2% in the 4th quarter. SOA Wealth Advisors LLC. now owns 1,551 shares of the electric vehicle automaker’s stock valued at $31,000 after acquiring an additional 1,395 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in Rivian Automotive in the 3rd quarter valued at about $31,000. Finally, Zions Bancorporation National Association UT purchased a new position in Rivian Automotive in the 4th quarter worth approximately $33,000. Hedge funds and other institutional investors own 66.25% of the company’s stock.

About Rivian Automotive

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.