Stock Traders Purchase High Volume of Rivian Automotive Call Options (NASDAQ:RIVN)

Rivian Automotive, Inc. (NASDAQ:RIVN) was the target of unusually large options trading activity on Friday. Stock investors acquired 150,910 call options on the stock. This represents an increase of approximately 39% compared to the average daily volume of 108,721 call options.

Rivian Automotive Trading Up 6.2%

Rivian Automotive stock traded up $0.71 during mid-day trading on Friday, hitting $12.16. The company’s stock had a trading volume of 62,526,842 shares, compared to its average volume of 29,256,658. The company has a 50 day moving average of $14.60 and a 200-day moving average of $15.53. The stock has a market cap of $17.61 billion, a PE ratio of -4.71 and a beta of 1.62. Rivian Automotive has a one year low of $11.38 and a one year high of $22.69. The company has a debt-to-equity ratio of 0.87, a quick ratio of 1.65 and a current ratio of 2.10.

Rivian Automotive (NASDAQ:RIVN) last issued its quarterly earnings data on Thursday, October 29th. The electric vehicle automaker reported ($0.48) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.64) by $0.16. The company had revenue of $2.15 billion for the quarter, compared to analyst estimates of $2 billion. Rivian Automotive had a negative net margin of 54.96% and a negative return on equity of 73.90%. Rivian Automotive’s revenue was up 38.3% compared to the same quarter last year. During the same period last year, the company posted ($1.08) earnings per share. On average, research analysts anticipate that Rivian Automotive will post -2.92 EPS for the current year.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. BNP Paribas Exane lifted their target price on shares of Rivian Automotive from $22.00 to $24.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 8th. Weiss Ratings restated a “sell (d-)” rating on shares of Rivian Automotive in a report on Friday, October 2nd. Cantor Fitzgerald dropped their price target on Rivian Automotive from $19.00 to $16.00 and set a “neutral” rating on the stock in a research report on Friday. Needham & Company LLC lowered their price objective on Rivian Automotive from $23.00 to $18.00 and set a “buy” rating on the stock in a research report on Friday. Finally, Wall Street Zen upgraded shares of Rivian Automotive from a “sell” rating to a “hold” rating in a research report on Saturday, September 19th. Fourteen equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $19.50.

Insider Buying and Selling at Rivian Automotive

In other Rivian Automotive news, insider Michael John Callahan sold 15,000 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the insider directly owned 1,001,776 shares in the company, valued at approximately $15,026,640. This represents a 1.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through 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 that occurred on 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 directly owned 827,201 shares of the company’s stock, 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 valued at $788,306 over the last ninety days. Insiders own 1.48% of the company’s stock.

Institutional Trading of Rivian Automotive

Large investors have recently added to or reduced their stakes in the company. VCI Wealth Management LLC acquired a new stake in Rivian Automotive in the 3rd quarter worth about $811,000. Traynor Capital Management Inc. lifted its position in shares of Rivian Automotive by 30.8% in the third quarter. Traynor Capital Management Inc. now owns 17,646 shares of the electric vehicle automaker’s stock valued at $264,000 after acquiring an additional 4,160 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in shares of 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 worth $29,441,000 after acquiring an additional 356,540 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. acquired a new stake in shares of Rivian Automotive in the third quarter worth approximately $327,000. Finally, Vise Technologies Inc. purchased a new stake in shares of Rivian Automotive during the third quarter worth approximately $156,000. Hedge funds and other institutional investors own 66.25% of the company’s stock.

More Rivian Automotive News

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

• Positive Sentiment: Q3 results beat expectations: Rivian reported revenue of approximately $2.15 billion, up 38.3% year over year, and an adjusted loss of $0.48 per share versus consensus expectations for a loss of roughly $0.64-$0.65. Higher deliveries, stronger gross profit and software revenue supported the double beat. Rivian Q3 Highlights: Stock Gains on Double Beat, Updated Vehicle Delivery Guidance
• Positive Sentiment: R2 momentum is the main catalyst: The new R2 SUV became Rivian’s best-selling vehicle in the quarter. Strong demand helped the company raise its full-year delivery outlook, reinforcing hopes that the more affordable model can drive scale and improve profitability. Why Did Rivian Stock Surge Higher on Friday?
• Positive Sentiment: Growth initiatives are expanding: Rivian is adding an AI assistant to its $5.8 billion joint venture with Volkswagen and recently acquired Third Dimension AI to enhance driver-assistance technology and its Autonomy+ services. These efforts could create longer-term software and services revenue opportunities. Rivian expands joint venture with VW to include AI assistant
• Neutral Sentiment: Analyst views are mixed: Jefferies upgraded Rivian to Buy with a $17 price target, while Needham maintained Buy but reduced its target to $18. Cantor Fitzgerald lowered its target to $16 and kept a Neutral rating. The targets still imply upside, but the reductions reflect ongoing execution and valuation risks. Rivian Automotive Analysts Lower Their Forecasts Following Q3 Earnings
• Negative Sentiment: Profitability remains unresolved: Rivian still posted a substantial net loss, negative margins and heavy cash burn. Investors will continue watching whether falling unit costs and higher R2 volumes can offset the capital required for the production ramp.

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.