Rivian Automotive (NASDAQ:RIVN) faced a downgrade from The Goldman Sachs Group, which has reduced its target price from $15.00 to $13.00, indicating a “neutral” rating for the electric vehicle manufacturer. This new price target suggests a potential downside of 14.39% from Rivian’s last closing price. This downgrade follows a trend among several research analysts who have recently reassessed their ratings on Rivian.
On October 14, Zacks Research lowered Rivian’s rating from “hold” to “strong sell,” while UBS Group adjusted their price objective from $12.00 to $13.00, maintaining a “neutral” stance. Mizuho also downgraded their rating to “underperform,” with a revised target price of $10.00, down from $14.00. Similarly, JPMorgan Chase increased its price target from $9.00 to $10.00, issuing an “underweight” rating. Currently, MarketBeat indicates that Rivian holds an average rating of “Reduce” and a target price of $13.67, with five analysts recommending a buy, fifteen a hold, and six suggesting a sell.
In trading activity, Rivian Automotive’s stock rose by 21.5% on Wednesday, reaching $15.19, with a significant trading volume of 54,948,909 shares. The stock has fluctuated between a 52-week low of $9.50 and a high of $17.15, and it holds a market cap of $18.43 billion. Financial indicators show a negative PE ratio of -4.64, a quick ratio of 2.72, and a debt-to-equity ratio of 0.73.
Recently, Rivian reported its financial results, revealing a loss of $0.97 per share for the quarter, missing expectations by $0.32. However, the company recorded quarterly revenue of $1.30 billion, surpassing analyst forecasts of $1.27 billion, and demonstrated a year-over-year revenue increase of 12.5%.
In insider trading news, CEO Robert J. Scaringe sold 17,450 shares for approximately $244,300, reducing his ownership stake slightly. Similarly, CFO Claire McDonough sold 7,247 shares valued at around $88,993. Collectively, insiders sold 42,147 shares worth $577,593 in the last quarter, with corporate insiders currently holding 2.16% of the stock.
On the institutional trading front, several hedge funds have significantly increased their holdings in Rivian. Assetmark Inc. boosted its stake by over 315%, and new entries were made by Banque Transatlantique SA and Newbridge Financial Services Group, among others. Institutional and hedge fund ownership now stands at 66.25% of Rivian’s stock.
Rivian Automotive, along with its subsidiaries, designs and manufactures electric vehicles and accessories, including its R1T pickup truck and R1S sport utility vehicle. Despite current doubts reflected in analyst ratings, Rivian’s advancements in electric vehicle manufacturing and continued growth in revenue may provide a silver lining moving forward in the evolving automotive landscape.