Top investors say Rivian Automotive Inc. (RIVN) ticks everything they need

Rivian Automotive Inc. (NASDAQ: RIVN) stock jumped 11.52% on Monday to $18.10 against a previous-day closing price of $16.23. With 41.63 million shares changed hands, the volume of the stock remained heavier than its average volume of 17.52 million shares. During the session, the Auto Manufacturers company that operates in wider Consumer Cyclical sector, reached to the highest price of $18.38 whereas the lowest price it dropped to was $16.44. The 52-week range on RIVN shows that it touched its highest point at $71.50 and its lowest point at $15.28 during that stretch. It currently has a 1-year price target of $40.00.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of RIVN was up-trending over the past week, with a rise of 10.03%, but this was down by -15.42% over a month. Three-month performance dropped to -41.10% while six-month performance fell -44.27%. The stock lost -72.16% in the past year, while it has lost -1.79% so far this year. A look at the trailing 12-month EPS for RIVN yields -17.59 with Next year EPS estimates of -5.59. For the next quarter, that number is -1.94. This implies an EPS growth rate of 54.50% for this year and 16.80% for next year.

Float and Shares Shorts:

At present, 918.00 million RIVN shares are outstanding with a float of 801.37 million shares on hand for trading. On Oct 13, 2022, short shares totaled 49.34 million, which was 5.39% higher than short shares on Sep 14, 2022. In addition to Mr. Robert Joseph Scaringe Ph.D. as the firm’s Founder, CEO & Chairman, Ms. Claire McDonough serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 64.21% of RIVN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 27.83% of RIVN, in contrast to 21.36% held by mutual funds. Shares owned by individuals account for 10.09%. As the largest shareholder in RIVN with 12.77% of the stake, T. Rowe Price Associates, Inc. holds 116,604,950 shares worth 116,604,950. A second-largest stockholder of RIVN, Capital Research & Management Co, holds 43,375,694 shares, controlling over 4.75% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in RIVN, holding 35,291,885 shares or 3.87% stake. With a 4.29% stake in RIVN, the T Rowe Price Growth Stock Fund is the largest stakeholder. A total of 39,129,173 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.13% of RIVN stock, is the second-largest Mutual Fund holder. It holds 19,462,254 shares valued at 358.69 million. American Funds Growth Fund of Ame holds 1.89% of the stake in RIVN, owning 17,277,274 shares worth 318.42 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RIVN since 22 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With RIVN analysts setting a high price target of $63.00 and a low target of $19.00, the average target price over the next 12 months is $39.72. Based on these targets, RIVN could surge 248.07% to reach the target high and rise by 4.97% to reach the target low. Reaching the average price target will result in a growth of 119.45% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. RIVN will report FY 2022 earnings on 03/07/2024. Analysts have provided yearly estimates in a range of -$5.34 being high and -$7.68 being low. For RIVN, this leads to a yearly average estimate of -$6.47. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rivian Automotive Inc. surprised analysts by $0.22 when it reported -$1.57 EPS against a consensus estimate of -$1.79. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$1.52 and the low estimate is -$2.31. The average estimate for the next quarter is thus -$1.96.

Summary of Insider Activity:

Insiders traded RIVN stock several times over the past three months with 1 Buys and 6 Sells. In these transactions, 12,500 shares were bought while 29,989 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 261,612 while 15,040,276 shares were sold.

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