Rivian Automotive, Inc. (NASDAQ:RIVN – Get Free Report) shares dropped 3.4% during mid-day trading on Monday. The stock traded as low as $11.42 and last traded at $11.43. Approximately 24,741,167 shares traded hands during trading, a decline of 15% from the average daily volume of 28,986,646 shares. The stock had previously closed at $11.83.
Trending Headlines about Rivian Automotive
Here are the key news stories impacting Rivian Automotive this week:
- Positive Sentiment: Rivian delivered a record 19,248 vehicles in the third quarter, a 46% year-over-year increase that reportedly exceeded expectations. Investors are also looking for further progress from the upcoming R2 platform, which is viewed as important to improving scale and margins. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
- Positive Sentiment: Volkswagen’s reported $1 billion loan and Rivian’s partnership provide additional financial runway, while software and services are generating better margins than vehicle manufacturing. Investors are also focused on Rivian’s autonomy technology and the potential for future software licensing revenue. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
- Positive Sentiment: A photograph of a Walmart-branded Rivian delivery van fueled speculation that Walmart could become a commercial-fleet customer. The report is unconfirmed, so any stock benefit depends on an actual order or partnership announcement. RIVN Stock Rebounds As Unconfirmed Walmart Delivery Van Sparks Fleet Hopes
- Neutral Sentiment: Rivian is scheduled to report third-quarter results after Thursday’s market close. The main catalysts will be deliveries, automotive gross margin, cash usage, R2 timing and management’s outlook for profitability. Rivian Reports Q3: Everything You Need to Know Ahead of Earnings
- Neutral Sentiment: Volkswagen’s planned Audi expansion and broader technology investments could support the automaker’s U.S. operations, but the developments have no immediate, direct impact on Rivian’s financial results. Volkswagen Bets $4B on Audi’s U.S. Expansion
- Neutral Sentiment: An AutoCamp financing announcement mentioned Rivian among its brand collaborators, but provided no material new business or financial information for Rivian. AutoCamp’s Collaborations Span Travel, Hospitality and Outdoor Recreation
- Negative Sentiment: Reports that Volkswagen may use XPeng’s software for some European EVs raise concern that Rivian could capture less software revenue from its Volkswagen partnership. Rivian is also increasing autonomy investment, adding execution risk before those initiatives generate meaningful returns. Volkswagen Software Doubts Might Change the Case for Investing in Rivian
- Negative Sentiment: Automotive gross profit remained negative at $36 million in the second quarter, underscoring Rivian’s continuing margin challenges and cash-burn risk despite improving deliveries. Rivian Bets on R2 Margins as Volkswagen’s $1 Billion Loan Buys Time
Analyst Ratings Changes
Several analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft lowered shares of Rivian Automotive from a “buy” rating to an “underperform” rating in a research note on Tuesday, August 4th. TD Cowen raised their price target on shares of Rivian Automotive from $20.00 to $21.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Stifel Nicolaus set a $22.00 price target on shares of Rivian Automotive in a report on Monday, August 24th. Wall Street Zen raised shares of Rivian Automotive from a “sell” rating to a “hold” rating in a report on Saturday, September 19th. Finally, Citigroup assumed coverage on shares of Rivian Automotive in a research report on Monday, September 14th. They set a “hold” rating and a $18.00 price objective for the company. Thirteen research analysts have rated the stock with a Buy rating, nine have given a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $19.86.
Read Our Latest Stock Analysis on RIVN
Rivian Automotive Trading Down 1.3%
The firm has a market cap of $16.90 billion, a P/E ratio of -4.52 and a beta of 1.62. 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 fifty day moving average of $14.75 and a 200-day moving average of $15.61.
Rivian Automotive (NASDAQ:RIVN – Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The electric vehicle automaker reported ($0.63) EPS for the quarter, topping analysts’ consensus estimates of ($0.66) by $0.03. The firm had revenue of $1.66 billion during the quarter, compared to the consensus estimate of $1.52 billion. Rivian Automotive had a negative return on equity of 73.90% and a negative net margin of 54.96%. The firm’s revenue was up 27.2% on a year-over-year basis. During the same period in the prior year, the business earned ($0.97) EPS. Equities research analysts forecast that Rivian Automotive, Inc. will post -2.92 earnings per share for the current year.
Insider Buying and Selling at Rivian Automotive
In related news, CFO Claire McDonough sold 13,144 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $14.50, for a total value of $190,588.00. Following the sale, the chief financial officer owned 827,201 shares of the company’s stock, valued at $11,994,414.50. This trade represents a 1.56% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Rivian Automotive stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $15.00, for a total transaction of $225,000.00. Following the completion of the sale, the insider 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 51,167 shares of company stock valued at $788,306. Corporate insiders own 1.48% of the company’s stock.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. MCF Advisors LLC increased its stake in shares of 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 position in shares of Rivian Automotive during the second quarter worth approximately $44,000. Oslo Pensjonsforsikring AS bought a new position in Rivian Automotive in the 1st quarter worth approximately $39,000. Root Financial Partners LLC bought a new position in Rivian Automotive in the 3rd quarter worth approximately $57,000. Finally, Continuum Advisory LLC bought a new position in Rivian Automotive in the 2nd quarter worth approximately $75,000. 66.25% of the stock is owned by institutional investors and hedge funds.
About Rivian Automotive
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.
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