Rivian Automotive (NASDAQ:RIVN) Stock Falls 3.1% Following Insider Selling

Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) experienced a decline of 3.1% during trading on Thursday, largely attributed to recent insider selling. The stock hit a low of $12.23 before closing at $12.30. During mid-day trading, a total of 15,056,621 shares changed hands, which represents a significant 64% decrease in volume compared to the average trading volume of 41,961,789 shares. The previous closing price was $12.69.

Insider Selling Details:

Rivian's CEO, Robert J. Scaringe, sold 35,713 shares of the company's stock in a transaction that took place on Tuesday, January 21st. This sale was executed at an average price of $13.76, resulting in a total transaction value of approximately $491,410.88. Following this sale, Scaringe's direct ownership in Rivian stands at 863,361 shares, valued at about $11.88 million, marking a 3.97% reduction in his stake. This sale was officially reported in a filing with the Securities and Exchange Commission (SEC).

Analyst Insights and Price Targets

Several analysts have recently revised their price targets for Rivian Automotive. Truist Financial increased their target from $12.00 to $14.00, noting a "hold" rating in their report on January 16th. Additionally, Wedbush reaffirmed an "outperform" rating with a new target price of $20.00. Conversely, Wells Fargo reduced their price target from $15.00 to $11.00, maintaining an "equal weight" rating. Bank of America also downgraded Rivian from a "buy" to a "neutral" rating and cut their price target from $20.00 to $13.00. Needham & Company lowered their target from $18.00 to $14.00, while still giving the stock a "buy" rating. Overall, the consensus among analysts has assigned Rivian a "hold" rating with an average price target of $15.52.

Rivian Automotive's Market Performance

The firm boasts a 50-day simple moving average of $13.19 and a 200-day moving average of $13.01. With a market capitalization of $13.03 billion and a price-to-earnings (P/E) ratio of -2.28, Rivian has shown volatility with a beta of 2.05. The company's quick ratio is 3.70, a current ratio of 5.09, and a debt-to-equity ratio of 0.93, indicating a favorable liquidity position.

Institutional Activity in Rivian Automotive

In recent trading, several large institutional investors have adjusted their stakes in Rivian. Baillie Gifford & Co. increased their shareholding by 52.5%, acquiring an additional 17,341,786 shares, bringing their total to 50,357,579 shares valued at $565.01 million. Geode Capital Management and Charles Schwab Investment Management also raised their positions, reflecting growing interest in the company. Currently, institutional investors hold approximately 66.25% of Rivian's shares.

Company Overview

Rivian Automotive, Inc. focuses on the design, development, manufacture, and sale of electric vehicles and their accessories. The company markets innovative consumer vehicles, including the five-passenger R1T pickup truck and the seven-passenger R1S sport utility vehicle.

Investing in Rivian Automotive presents both challenges and opportunities, as demonstrated by recent stock performance and insider activities. Prospective investors should consider the insights and recommendations from analysts while keeping an eye on market developments.

Rivian, Stock, Insider