Rivian Automotive, Inc. (NASDAQ:RIVN) experienced a decline of 3.1% in its stock price during mid-day trading on Monday, reaching a low of $21.63 before closing at $21.75. This drop followed a previous close of $22.45 and coincided with a trading volume of 37,632,962 shares, which marked a 4% decrease from the average volume of 39,320,203 shares.
Analyst Ratings and Stock Performance
The recent performance of Rivian has attracted considerable attention from Wall Street analysts. On December 15, 2023, Evercore ISI reiterated an “outperform” rating for Rivian Automotive. In contrast, Weiss Ratings assigned a “sell (d-)” rating in a report released on October 8, 2023.
Needham & Company LLC raised their price target for Rivian from $14.00 to $23.00 while maintaining a “buy” rating in a note issued on December 12, 2023. Additionally, Tigress Financial increased their price objective from $21.00 to $25.00, also giving the company a “buy” rating. Conversely, Morgan Stanley reiterated an “underweight” rating, setting a price target of $12.00 on December 8, 2023.
Current consensus ratings indicate that one analyst rates the stock as a Strong Buy, eight have issued Buy ratings, thirteen analysts have given it a Hold rating, and six assigned a Sell rating. According to MarketBeat, Rivian Automotive holds a consensus rating of “Hold” with a price target of $15.73.
Rivian’s stock performance reflects the broader challenges the company faces in the competitive electric vehicle market. The company recently reported its quarterly earnings on November 4, 2023, revealing earnings per share of ($0.65), surpassing analysts’ expectations of ($0.71) by $0.06. Revenue for the quarter reached $1.56 billion, exceeding the anticipated $1.27 billion. Despite this positive revenue growth of 78.3% year-over-year, Rivian reported a negative net margin of 61.34% and a negative return on equity of 57.33%. Analysts predict Rivian will post an earnings per share of -3.2 for the current fiscal year.
Insider Activity and Institutional Holdings
Recent insider trading has also garnered attention. On November 11, 2023, CEO Robert J. Scaringe sold 52,350 shares at an average price of $16.60, totaling approximately $869,010. Following this transaction, Scaringe retains ownership of 1,246,405 shares, valued at around $20.69 million. This sale reflects a 4.03% decrease in his stake.
CFO Claire McDonough also sold 21,210 shares on December 2, 2023, for an average price of $17.14, amounting to about $363,539.40. After this sale, McDonough owns 738,056 shares, valued at approximately $12.65 million, representing a 2.79% decrease in her ownership.
In the last quarter, insiders sold a total of 120,154 shares, worth $2,017,909. Currently, insiders hold 2.16% of Rivian’s stock, indicating a modest level of insider ownership.
Institutional investors have played a significant role in Rivian’s stock dynamics. Prospera Financial Services Inc. increased its position by 5.2% during the third quarter, acquiring an additional 775 shares to reach a total of 15,803 shares valued at $232,000. Siemens Fonds Invest GmbH raised its stake by 7.7% during the same period, now owning 10,874 shares worth $160,000 after purchasing 780 additional shares.
Other notable movements include Equitable Holdings Inc., which boosted its holdings by 5.8%, and TD Asset Management Inc., which increased its position by 1.2%. Currently, institutional investors and hedge funds collectively own 66.25% of Rivian Automotive’s stock.
Rivian Automotive, established in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, is recognized for its all-electric R1 platform, which supports both the R1T pickup truck and R1S sport utility vehicle. The company also holds a significant contract to produce electric delivery vans for a major e-commerce provider, highlighting its dual focus on consumer and commercial markets.
