Rivian Automotive (NASDAQ:RIVN) Trading Down 7.5% on Analyst Downgrade

Rivian Automotive, Inc. (NASDAQ:RIVN)’s share price fell 7.5% on Monday after Guggenheim lowered their price target on the stock from $18.00 to $16.00. Guggenheim currently has a buy rating on the stock. Rivian Automotive traded as low as $11.71 and last traded at $12.00. 27,614,200 shares were traded during mid-day trading, a decline of 20% from the average session volume of 34,353,898 shares. The stock had previously closed at $12.97.

A number of other research analysts have also weighed in on RIVN. Bank of America lowered shares of Rivian Automotive from a “neutral” rating to an “underperform” rating and dropped their price target for the company from $13.00 to $10.00 in a research report on Monday. Robert W. Baird restated a “neutral” rating and set a $16.00 price objective (down previously from $18.00) on shares of Rivian Automotive in a report on Wednesday, December 18th. UBS Group lifted their target price on shares of Rivian Automotive from $11.00 to $14.00 and gave the stock a “neutral” rating in a research note on Thursday, January 16th. Needham & Company LLC boosted their price objective on shares of Rivian Automotive from $14.00 to $17.00 and gave the company a “buy” rating in a research note on Friday. Finally, Mizuho lifted their target price on shares of Rivian Automotive from $11.00 to $13.00 and gave the company a “neutral” rating in a research report on Friday. Three research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat, Rivian Automotive has an average rating of “Hold” and an average target price of $14.87.

Insider Activity

In related news, CEO Robert J. Scaringe sold 71,429 shares of the firm’s stock in a transaction on Monday, January 6th. The stock was sold at an average price of $16.17, for a total value of $1,155,006.93. Following the completion of the sale, the chief executive officer now directly owns 863,361 shares in the company, valued at $13,960,547.37. This trade represents a 7.64 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Claire Mcdonough sold 6,856 shares of the firm’s stock in a transaction on Wednesday, February 19th. The stock was sold at an average price of $14.26, for a total value of $97,766.56. Following the completion of the sale, the chief financial officer now owns 335,076 shares of the company’s stock, valued at approximately $4,778,183.76. This represents a 2.01 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 275,357 shares of company stock worth $3,988,140. 2.51% of the stock is currently owned by insiders.

Institutional Trading of Rivian Automotive

Several institutional investors and hedge funds have recently made changes to their positions in the business. Tandem Financial LLC purchased a new position in shares of Rivian Automotive during the fourth quarter valued at $25,000. Bank of Jackson Hole Trust purchased a new position in Rivian Automotive in the fourth quarter valued at about $27,000. Wilmington Savings Fund Society FSB purchased a new position in Rivian Automotive in the third quarter valued at about $28,000. GHP Investment Advisors Inc. grew its stake in Rivian Automotive by 63.2% in the third quarter. GHP Investment Advisors Inc. now owns 2,588 shares of the electric vehicle automaker’s stock valued at $29,000 after purchasing an additional 1,002 shares during the last quarter. Finally, American Capital Advisory LLC grew its stake in Rivian Automotive by 267.6% in the third quarter. American Capital Advisory LLC now owns 2,900 shares of the electric vehicle automaker’s stock valued at $33,000 after purchasing an additional 2,111 shares during the last quarter. 66.25% of the stock is currently owned by institutional investors.

Rivian Automotive Price Performance

The firm has a 50 day simple moving average of $13.49 and a 200-day simple moving average of $12.48. The company has a quick ratio of 3.70, a current ratio of 5.09 and a debt-to-equity ratio of 0.93. The company has a market cap of $12.21 billion, a PE ratio of -2.53 and a beta of 2.04.

Rivian Automotive (NASDAQ:RIVN) last posted its earnings results on Thursday, February 20th. The electric vehicle automaker reported ($0.63) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.69) by $0.06. Rivian Automotive had a negative return on equity of 66.26% and a negative net margin of 95.51%. The company had revenue of $1.73 billion for the quarter, compared to analyst estimates of $1.43 billion. As a group, research analysts predict that Rivian Automotive, Inc. will post -3.2 earnings per share for the current fiscal year.

About Rivian Automotive

Rivian Automotive, Inc, together with its subsidiaries, designs, develops, manufactures, and sells electric vehicles and accessories. The company offers consumer vehicles, including a two-row, five-passenger pickup truck under the R1T brand, a three-row, seven-passenger sport utility vehicle under the R1S name.