Rivian Automotive Analysts Set Average Target Price at $17.86

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) have been assigned an average target price of $17.86 by analysts covering the company, according to Marketbeat.com. The evaluation comes from a total of twenty-five brokerages, resulting in a consensus rating of “Hold.” Among these analysts, seven have issued a sell rating, nine have assigned a hold rating, and another nine have designated a buy rating for the stock.

Several key analysts have recently provided updates regarding Rivian’s stock. Bank of America initiated coverage with an “underperform” rating and a target price of $14.00. On the other hand, Jefferies Financial Group maintained a “hold” rating, setting a price target of $15.00. Additionally, Wolfe Research downgraded Rivian from a “peer perform” rating to “underperform.” Most recently, TD Cowen increased their target from $13.00 to $17.00 while also issuing a “hold” rating.

Quarterly Earnings Reveal Mixed Results

Rivian Automotive reported its quarterly earnings results on February 12, 2024. The electric vehicle manufacturer posted an earnings per share (EPS) of ($0.66), which exceeded the consensus estimate of ($0.68) by $0.02. Despite this positive news, the company experienced a negative return on equity of 65.05% and a negative net margin of 67.68%.

During the last quarter, Rivian generated revenue of $1.29 billion, surpassing the consensus estimate of $1.27 billion. However, this figure represents a 25.8% decline compared to the same quarter the previous year when the company reported an EPS of ($0.70). Analysts anticipate that Rivian will post an EPS of ($3.20) for the current fiscal year.

Insider Activity and Institutional Investments

In related news, insider transactions have attracted attention this week. Robert J. Scaringe, Rivian’s CEO, sold 17,450 shares on March 3 at an average price of $15.00, amounting to a total of $261,750.00. Following this sale, Scaringe retains 1,027,281 shares, valued at approximately $15.4 million. The transaction marked a 1.67% decrease in his ownership.

Similarly, Chief Financial Officer Claire McDonough sold 27,133 shares on February 18 for an average price of $16.80, totaling $455,834.40. After this sale, McDonough holds 680,836 shares, valued at around $11.4 million, reflecting a 3.83% decrease in her ownership. Over the past three months, insiders have sold a total of 152,938 shares for approximately $2.68 million, with corporate insiders owning 2.16% of the stock.

Institutional investors are also adjusting their stakes in Rivian. Norges Bank acquired a new position in the fourth quarter valued at around $220.3 million. Renaissance Technologies LLC increased its stake by 32.4% during the same period, now holding 16,397,496 shares valued at $323.2 million. Vanguard Group Inc. raised its holdings by 3.3% in the third quarter, now owning 81,673,512 shares worth approximately $1.2 billion. Other notable investors include Capital International Investors and AQR Capital Management LLC, which also expanded their positions significantly.

With 66.25% of Rivian’s stock owned by hedge funds and institutional investors, the company continues to attract substantial interest from the financial community. Rivian Automotive, founded in 2009 by RJ Scaringe, specializes in electric vehicle design, development, and manufacturing, making strides with products like the all-electric R1T pickup truck and R1S sport utility vehicle. The company has also secured contracts for electric delivery vans, showcasing its dual focus on consumer and commercial markets.