Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) have received an average rating of “Hold” from a group of twenty-five brokerages that are currently covering the company. According to MarketBeat.com, the analysts have assigned an average one-year target price of $17.86 for Rivian. The ratings show a split opinion: seven analysts have issued sell ratings, nine have given hold ratings, and another nine have rated the stock as a buy.
Several equity research firms have provided insights on Rivian’s stock in recent reports. Bank of America initiated coverage and set an “underperform” rating with a target price of $14.00. In another report, Weiss Ratings maintained a “sell (d-)” rating on Rivian shares on January 22. Meanwhile, Jefferies Financial Group reaffirmed its hold rating and set a price objective of $15.00. On January 12, Wolfe Research downgraded Rivian from a “peer perform” to an “underperform” rating. In contrast, TD Cowen increased its target price from $13.00 to $17.00 while maintaining a hold rating on February 13.
Quarterly Earnings Report and Insider Activity
Rivian recently released its quarterly earnings results on February 12, 2024. The electric vehicle manufacturer reported an earnings per share (EPS) of ($0.66), outperforming the consensus estimate of ($0.68) by $0.02. However, the company experienced a negative return on equity of 65.05% and a negative net margin of 67.68%. Rivian’s quarterly revenue reached $1.29 billion, slightly exceeding the consensus estimate of $1.27 billion. In the same quarter of the previous year, Rivian posted an EPS of ($0.70), indicating a year-over-year decline in revenue of 25.8%. Analysts anticipate Rivian will post an EPS of ($3.20) for the current fiscal year.
In terms of insider activity, CEO Robert J. Scaringe sold 17,450 shares of company stock on March 3 at an average price of $15.00, totaling $261,750. Following this transaction, he retains 1,027,281 shares valued at approximately $15.41 million, reflecting a 1.67% decrease in his ownership position. The transaction was disclosed in a filing with the SEC. Similarly, CFO Claire McDonough sold 27,133 shares on February 18 at an average price of $16.80, amounting to $455,834.40. After this sale, she owns 680,836 shares valued around $11.44 million, representing a 3.83% reduction in ownership. Over the past three months, insiders have sold 152,938 shares worth approximately $2.68 million, with corporate insiders currently holding 2.16% of the stock.
Institutional Investor Activity
Recent changes in institutional investors’ holdings have also shaped Rivian’s stock landscape. Norges Bank acquired a new position in Rivian during the fourth quarter, valued at approximately $220.32 million. Renaissance Technologies LLC increased its stake by 32.4% during the same period, now holding 16,397,496 shares valued at $323.20 million. Vanguard Group Inc. raised its holdings by 3.3% in the third quarter to 81,673,512 shares, valued at $1.2 billion. Additionally, Capital International Investors increased its stake by 13.2%, holding 20,769,844 shares worth $409.37 million. AQR Capital Management LLC saw a dramatic increase of 496.6% in its holding during the second quarter, acquiring 2,305,236 shares valued at $31.49 million. Currently, hedge funds and institutional investors own 66.25% of Rivian’s stock.
Founded in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, Rivian Automotive has evolved from a research-focused startup into a publicly traded company. The firm specializes in designing, developing, and manufacturing electric vehicles, notably its all-electric R1 platform, which supports the R1T pickup truck and R1S sport utility vehicle. Additionally, Rivian has secured significant contracts to produce electric delivery vans for major e-commerce clients, indicating its capabilities in both retail and fleet markets.
