On August 20, 2023, it was revealed that &Tredje AP fonden has acquired a new position in Rivian Automotive, Inc. (NASDAQ:RIVN) during the first quarter of the year. In its latest filing with the Securities and Exchange Commission, the fund disclosed its purchase of 67,770 shares of the electric vehicle automaker’s stock. The value of this acquisition is estimated to be around $1,049,000.
Rivian Automotive recently released its quarterly earnings report on August 8th. During this period, the company posted earnings per share (EPS) of ($1.08), surpassing analysts’ consensus estimates by $0.34 with a reported EPS of ($1.42). The company generated $1.12 billion in revenue for the quarter, exceeding the projected consensus estimate of $1.02 billion. These results indicate a significant increase in revenue of approximately 208% compared to the same period last year.
Despite these positive financial figures, Rivian Automotive experienced a negative return on equity of 38.91% and a negative net margin of 200%. However, given their substantial revenue growth and potential future prospects within the electric vehicle market, analysts predict that Rivian Automotive will post -5.89 EPS for the current fiscal year.
Various equities analysts have weighed in on RIVN shares recently. Mizuho issued a research note on August 9th where they raised their price objective for Rivian Automotive from $30.00 to $32.00 and gave it a “buy” rating. Furthermore, Wells Fargo & Company increased their target price from $14.00 to $24.00 and assigned an “equal weight” rating to Rivian Automotive’s stock on the same day.
The Goldman Sachs Group also adjusted their target price from $18.00 to $23.00 and classified Rivian Automotive as “neutral” in their report issued on August 9th. Piper Sandler followed suit, raising their target price from $14.00 to $22.00 and giving the stock a “neutral” rating on that same day. Finally, DA Davidson joined the trend by increasing their target price from $18.00 to $25.00 and also assigning a “neutral” rating in their report released on August 10th.
In total, out of the analysts who have reviewed Rivian Automotive, one has given it a sell rating, seven recommend holding the stock, and twelve suggest buying shares in the company. According to Bloomberg, Rivian Automotive currently holds a consensus rating of “Moderate Buy.” The average price target for Rivian Automotive is estimated to be around $29.10.
These recent activities surrounding Rivian Automotive highlight growing interest and confidence within the market towards electric vehicle companies. It will be interesting to see how this momentum translates into further developments for Rivian Automotive and shapes its position within the electric vehicle industry moving forward.
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Rivian Automotive Gains Attention of Hedge Funds, Sees Surge in Investor Confidence
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”RIVN” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]In a surprising turn of events, Rivian Automotive has captured the attention of several hedge funds, who have recently bought and sold shares of the company. One hedge fund, Connor Clark & Lunn Investment Management Ltd., made headlines by significantly increasing its stake in Rivian Automotive during the first quarter. In fact, their stake rose by an astonishing 405.9%, resulting in ownership of 101,614 shares valued at $1,573,000 after acquiring an additional 81,529 shares during the period.
But they were not alone. Mitsubishi UFJ Trust & Banking Corp followed suit by lifting its stake in Rivian Automotive by 3.0% during the same timeframe. Their ownership now stands at 183,699 shares valued at $2,844,000 after acquiring an additional 5,318 shares. Orion Capital Management LLC also jumped on board with a notable increase of 67.7% in its stake in Rivian Automotive, resulting in ownership of 2,230 shares valued at $35,000 after purchasing an additional 900 shares.
Principal Financial Group Inc., too, showed interest in the electric vehicle automaker and lifted its stake by 4.4%. Their ownership now comprises 51,914 shares worth $804,000 after acquiring an additional 2,209 shares during the period. Lastly, Spire Wealth Management boosted its stake by a remarkable 37.7%, owning a total of 7,863 shares worth $122,000 after acquiring an additional 2,151 shares.
These investments reflect a growing interest among institutional investors in Rivian Automotive as they now own approximately 62.04% of the company’s stock.
In other news concerning Rivian Automotive’s financial landscape and management team changes: Chief Financial Officer (CFO) Claire Mcdonough executed a transaction involving the sale of 3,625 shares of the firm’s stock on Thursday, June 8th. These shares were sold at an average price of $13.71, resulting in a total value of $49,698.75. Following the conclusion of this sale, Mcdonough now holds a direct ownership interest in the company amounting to 72,304 shares valued at $991,287.84. This sale was disclosed in a filing with the SEC and more details can be found on the SEC website.
Additionally, Mcdonough was involved in another stock transaction involving Rivian Automotive. On Tuesday, June 6th, Chief Accounting Officer (CAO) Jeff Baker sold 20,000 shares of Rivian Automotive stock at an average price of $14.53 per share. The total value of this transaction was $290,600.00. Following the sale, Baker’s ownership interest stands at 86,204 shares valued at $1,252,544.12.
It is worth noting that insiders have been actively selling their shares in Rivian Automotive over the past three months. In total, insiders have sold 54,423 shares worth approximately $793,029 during this period.
As for the current state of Rivian Automotive’s stock prices — as of Friday morning — shares opened at $20.78. The business currently maintains a fifty-day moving average of $21.25 and a two-hundred-day moving average of $17.28.
Furthermore, Rivian Automotive has experienced fluctuations in its performance over the past year with a recorded 52-week low of $11.68 and a high point of $40.86.
With regard to its financial health and liquidity ratios: Rivian Automotive possesses a debt-to-equity ratio standing at 0.23 along with favorable quick and current ratios measuring 4.71 and 5.66 respectively.
In conclusion, the recent surge in hedge fund activity surrounding Rivian Automotive highlights growing confidence among institutional investors in the company’s potential. The increased stakes held by various hedge funds, alongside notable changes within Rivian Automotive’s management team, suggest a positive outlook for the electric vehicle automaker. Time will tell how the market responds to these developments and whether Rivian Automotive can maintain its upward trajectory in the coming months.
