Rivian Automotive (NASDAQ:RIVN) Shares Gap Down – Here’s Why

Rivian Automotive, Inc. (NASDAQ:RIVN) gapped down before the market opened on Wednesday . The stock had previously closed at $13.28, but opened at $12.81. Rivian Automotive shares last traded at $12.51, with a volume of 7,695,240 shares changing hands.

Analyst Upgrades and Downgrades

Several research firms recently commented on RIVN. Bank of America downgraded Rivian Automotive from a “neutral” rating to an “underperform” rating and cut their target price for the stock from $13.00 to $10.00 in a research report on Monday, February 24th. Needham & Company LLC lifted their price objective on Rivian Automotive from $14.00 to $17.00 and gave the company a “buy” rating in a report on Friday, February 21st. UBS Group upped their target price on shares of Rivian Automotive from $11.00 to $14.00 and gave the stock a “neutral” rating in a report on Thursday, January 16th. Guggenheim reduced their price target on shares of Rivian Automotive from $18.00 to $16.00 and set a “buy” rating on the stock in a research report on Monday, February 24th. Finally, Cantor Fitzgerald lowered shares of Rivian Automotive from an “overweight” rating to a “neutral” rating and raised their price objective for the stock from $13.00 to $15.00 in a report on Friday, February 21st. Three research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and six have given a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $14.38.

Rivian Automotive Stock Performance

The company has a current ratio of 5.09, a quick ratio of 3.70 and a debt-to-equity ratio of 0.93. The company has a market cap of $14.06 billion, a price-to-earnings ratio of -2.63 and a beta of 2.03. The stock has a 50 day moving average price of $12.22 and a two-hundred day moving average price of $12.11.

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

Insider Activity at Rivian Automotive

In other news, CEO Robert J. Scaringe sold 35,713 shares of the business’s stock in a transaction on Tuesday, January 21st. The shares were sold at an average price of $13.76, for a total value of $491,410.88. Following the completion of the transaction, the chief executive officer now owns 863,361 shares of the company’s stock, valued at $11,879,847.36. The trade was a 3.97 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 sale, the chief financial officer now directly owns 335,076 shares in the company, valued at $4,778,183.76. The trade was a 2.01 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 185,427 shares of company stock worth $2,588,475. 2.51% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Rivian Automotive

Several institutional investors have recently modified their holdings of the business. Lansforsakringar Fondforvaltning AB publ bought a new position in Rivian Automotive in the fourth quarter valued at approximately $3,198,000. PKO Investment Management Joint Stock Co bought a new stake in Rivian Automotive in the 4th quarter valued at $479,000. Siemens Fonds Invest GmbH acquired a new position in Rivian Automotive in the 4th quarter worth $145,000. Gould Capital LLC increased its holdings in Rivian Automotive by 87.6% during the 4th quarter. Gould Capital LLC now owns 7,025 shares of the electric vehicle automaker’s stock worth $93,000 after purchasing an additional 3,280 shares in the last quarter. Finally, Parr Mcknight Wealth Management Group LLC acquired a new stake in shares of Rivian Automotive in the 4th quarter valued at about $206,000. Institutional investors own 66.25% of the company’s stock.

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.