Shares of Rivian Automotive, Inc. (NASDAQ:RIVN) fell by 1.6% on Tuesday after Wolfe Research downgraded the stock from a “peer perform” rating to an “underperform” rating. The electric vehicle manufacturer saw its stock price drop to a low of $18.65 before settling at $18.85. Trading volume reached 24,616,816 shares, a significant decrease of 28% compared to the average session volume of 34,076,070 shares. The previous close for the stock was $19.15.
Analysts have been vocal regarding Rivian’s prospects, with various ratings impacting market sentiment. On October 20, Mizuho reaffirmed an “underperform” rating, lowering its price target from $14.00 to $10.00. Conversely, Wedbush raised its price objective from $16.00 to $25.00, classifying the company as “outperform” in a report dated December 19. Other analysts, including Zacks Research and Needham & Company, have varied in their assessments, highlighting a mix of “hold” and “buy” ratings.
The consensus rating for Rivian’s stock currently stands at “hold,” with an average price target of $15.95, as reported by MarketBeat.com. A total of one analyst has rated the stock as a strong buy, while eight have given it a buy rating, thirteen have issued a hold rating, and seven have recommended a sell.
In insider trading news, CEO Robert J. Scaringe sold 17,450 shares on January 6, 2024, at an average price of $19.55, amounting to a total of $341,147.50. Following this transaction, Scaringe retained 1,132,659 shares, valued at approximately $22,143,483.45, reflecting a 1.52% decrease in his ownership. Additionally, Director Peter Krawiec sold 3,655 shares for $71,089.75 on December 15, 2023, reducing his stake by 11.15%.
Over the past three months, insiders have disposed of a total of 155,054 shares valued at $2,733,010, with insiders currently holding 2.16% of Rivian’s stock.
In recent developments impacting investor sentiment, Rivian has appointed Greg Revelle as Chief Customer Officer, a move that aims to enhance customer operations and retention. Additionally, Scaringe has been announced as a keynote speaker at the upcoming ACT Expo 2026, which could bolster Rivian’s visibility among fleet and commercial buyers.
Negative sentiment surrounding the company includes a recall of nearly 20,000 R1 vehicles due to outdated service procedures, raising concerns about warranty costs and potential reputational damage. Analysts have urged caution, noting the implications of this recall on Rivian’s operational execution.
Despite these challenges, Rivian recently reported quarterly earnings that exceeded analysts’ expectations. For the quarter ending November 4, 2023, Rivian posted a loss of ($0.65) earnings per share (EPS), surpassing the consensus estimate of ($0.71) by $0.06. The company also reported revenue of $1.56 billion, significantly higher than the forecasted $1.27 billion and up 78.3% year-over-year.
As Rivian navigates the evolving electric vehicle landscape, analysts remain divided, with expectations for the current fiscal year projecting an EPS of -3.2. The company, founded in 2009 by engineer Robert “RJ” Scaringe, continues to focus on both consumer and commercial segments, including a notable contract to produce electric delivery vans for a leading e-commerce provider.
Investors will closely monitor Rivian’s performance and strategic decisions in the coming months, especially in light of the mixed analyst ratings and ongoing operational challenges.