Rivian Automotive (NASDAQ:RIVN) Stock Faces Decline After Insider Share Sale

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) experienced a decline of 4.1% on Thursday following an insider's sale of company stock. During the trading session, the stock reached a low of $13.28 and concluded the day at $13.36. A total of approximately 12,994,327 shares exchanged hands, representing a significant drop of 60% compared to the average daily trading volume of 32,333,453 shares. Prior to this downturn, the stock had closed at $13.93.

Insider Transaction Details

Specifically, the company's Chief Financial Officer, Claire Mcdonough, sold 6,856 shares on Wednesday, February 19th, at an average price of $14.26. This transaction totaled about $97,766.56. After the sale, Mcdonough holds 335,076 shares of Rivian, which are worth approximately $4,778,183.76. This sale reflects a 2.01% decrease in her ownership stake. The specifics of this transaction were reported through a filing with the Securities and Exchange Commission.

Analysts' Perspectives on Rivian Automotive

Wall Street analysts maintain a diverse outlook on Rivian's stock. Robert W. Baird reaffirmed a "neutral" rating with a revised price target of $16.00, lowered from a previous target of $18.00. Bank of America adjusted Rivian’s rating from "buy" to "neutral," slashing their price target from $20.00 to $13.00. Additionally, Cantor Fitzgerald kept an "overweight" rating with a target of $13.00. A report from Goldman Sachs raised its target for Rivian from $10.00 to $12.00 while retaining a "neutral" status. Lastly, UBS Group also increased its target from $11.00 to $14.00, maintaining a "neutral" rating. Overall, two analysts classified the stock as a sell, while fourteen suggested holding, and ten recommended buying. According to MarketBeat, Rivian has a consensus rating of "Hold" and an average target price of $15.13.

Performance Metrics

Rivian Automotive has a 50-day simple moving average of $13.59 and a two-hundred day simple moving average of $12.54. The company’s quick ratio stands at 3.70, its current ratio is 5.09, and it features a debt-to-equity ratio of 0.93. Currently, Rivian's market capitalization is $13.89 billion, with a price-to-earnings (P/E) ratio of -2.43, and a beta of 2.04.

Earnings Report Insights

The latest earnings results for Rivian, released on February 20th, showed the company reporting earnings of ($0.63) per share, which exceeded analysts' expectations of ($0.69) by $0.06. Rivian's return on equity was negative at 72.78%, and it faced a net margin of -121.38%. Analysts predict an average earnings per share of -4.7 for the current year.

Institutional Investment Trends

Recent activity among institutional investors indicates changing stakes in Rivian Automotive. Tandem Financial LLC initiated a new investment during the fourth quarter worth $25,000, while Bank of Jackson Hole Trust acquired a position valued at $27,000. Wilmington Savings Fund Society FSB and Orion Capital Management LLC also initiated positions worth $28,000 and $34,000, respectively. GHP Investment Advisors Inc. increased its stake by 63.2%, now owning 2,588 shares valued at $29,000 after acquiring additional shares. Currently, institutional investors hold 66.25% of Rivian’s stock.

About Rivian Automotive

Rivian Automotive, Inc. focuses on designing, manufacturing, and selling electric vehicles and accessories. The company offers a two-row, five-passenger electric pickup truck branded as R1T and a three-row, seven-passenger electric SUV known as R1S.

Rivian, Stock, Insider