Deutsche Bank Aktiengesellschaft has upgraded its rating for Rivian Automotive (NASDAQ:RIVN) from a “hold” to a “buy.” This change, announced in a research note on February 12, 2024, reflects an increase in the bank’s price target for the electric vehicle manufacturer, moving from $16.00 to $23.00. This upgrade comes amid a series of analyst evaluations that have also recently addressed Rivian’s stock performance.
In addition to Deutsche Bank’s positive outlook, Zacks Research raised Rivian’s rating from “strong sell” to “hold” on November 10, 2023. Conversely, Morgan Stanley maintained an “underweight” rating with a target price of $12.00, indicating some analysts remain cautious. On December 19, 2023, Wedbush adjusted its price target from $16.00 to $25.00 and provided an “outperform” rating. Other institutions, such as DA Davidson and The Goldman Sachs Group, have also adjusted their price targets for Rivian, reflecting a mix of optimism and caution in the market.
Currently, nine analysts have a “buy” rating on Rivian stock, while ten suggest a “hold” and six recommend a “sell.” The consensus rating for Rivian Automotive stands at “hold” with a consensus price target of $17.62, according to data from MarketBeat.com.
Financial Performance and Shareholder Activity
Rivian Automotive last released its quarterly earnings data on February 12, 2024. The company reported an earnings per share (EPS) of ($0.66), slightly surpassing the consensus estimate of ($0.68). Revenue for the quarter reached $1.29 billion, exceeding analyst expectations of $1.27 billion. Despite this positive news, Rivian experienced a 25.8% decline in revenue compared to the same quarter the previous year.
During the same quarter in the prior year, Rivian posted an EPS of ($0.70). Analysts predict that Rivian will record an EPS of ($3.20) for the current fiscal year, reflecting ongoing challenges in the electric vehicle market.
In recent insider transactions, Director Peter Krawiec sold 3,655 shares on December 15, 2023, at an average price of $19.45, totaling approximately $71,089.75. After this sale, Krawiec held 29,122 shares valued at about $566,422.90. Additionally, Chief Financial Officer Claire McDonough sold 8,039 shares on December 4, 2023, at an average price of $18.00, amounting to around $144,702.00. Following this transaction, McDonough owns 730,017 shares worth approximately $13,140,306.
Institutional Investment Trends
Recent activity from institutional investors also highlights shifting stakes in Rivian. Assetmark Inc. increased its holdings by 315.6% in the second quarter, now owning 1,787 shares valued at around $25,000. Similarly, Newbridge Financial Services Group Inc. raised its stake by 113.6%, bringing its total to 1,880 shares worth approximately $26,000.
Other notable changes include Core Wealth Advisors LLC and Hemington Wealth Management, which acquired new positions in Rivian during the latter half of 2023. Currently, approximately 66.25% of Rivian’s stock is owned by hedge funds and institutional investors, indicating a strong institutional interest in the company.
Rivian Automotive, founded in 2009 by engineer and entrepreneur Robert “RJ” Scaringe, specializes in the design and manufacture of electric vehicles. The company is particularly recognized for its all-electric R1 platform, which serves as the foundation for its R1T pickup truck and R1S sport utility vehicle. Rivian has also secured a significant contract to produce electric delivery vans for a leading e-commerce provider, showcasing its commitment to both consumer and commercial markets.
As Rivian continues to navigate the competitive landscape of electric vehicles, the recent upgrades and ongoing analyst evaluations will likely play a crucial role in shaping investor sentiment and market performance in the months ahead.
