Rivian Automotive, Inc. (NASDAQ:) CEO Robert J. Scaringe recently sold 83,334 shares of Class A common stock, according to a filing with the Securities and Exchange Commission. The shares were sold at an average price of $11.25, amounting to a total transaction value of approximately $937,507. This sale was conducted through a Rule 10b5-1 trading plan, which had been adopted earlier this year.
In addition to the sale, Scaringe also exercised stock options to acquire 83,334 shares at a price of $2.6282 per share, totaling around $219,018. Following these transactions, Scaringe holds 863,361 shares directly, with additional shares held indirectly through an LLC and a trust.
These transactions highlight Scaringe’s ongoing management of his equity holdings in Rivian, a company focused on manufacturing electric vehicles.
In other recent news, Rivian Automotive Inc has been at the forefront of several significant financial developments. The electric vehicle manufacturer recently secured a conditional commitment from the Department of Energy for a loan of up to $6.6 billion, aimed at supporting the development and construction of its Georgia EV manufacturing facility, known as Project Horizon. This comes alongside a deepened collaboration with Volkswagen (ETR:), which is expected to bolster Rivian’s financial position by offsetting operational expenses and sharing research and development costs.
In terms of financial performance, Rivian reported lower than expected earnings for a recent quarter, with revenues totaling $874 million against a consensus estimate of $982 million. Despite supply chain challenges, the company managed to produce 13,200 vehicles and deliver approximately 10,000 units. Looking ahead, Rivian anticipates delivery growth in the low single-digit percentage range year-over-year and is targeting a positive gross margin by the fourth quarter of 2024.
Several investment firms have also adjusted their stock price targets for Rivian. Truist Securities and Deutsche Bank (ETR:) maintained a Hold rating and a $12.00 stock price target. DA Davidson revised its target to $12.00 from $13.00, maintaining a Neutral rating. Mizuho (NYSE:) reduced its target to $11.00 from $12.00, also maintaining a Neutral stance, and Stifel cut its target to $16.00 from $18.00 but maintained a Buy rating. Despite these adjustments, the firms’ overall stance on Rivian remains largely unchanged.
InvestingPro Insights
Rivian Automotive’s recent stock transactions by CEO Robert J. Scaringe occur against a backdrop of mixed financial indicators for the company. According to InvestingPro data, Rivian’s market capitalization stands at $11.79 billion, reflecting its position as a significant player in the electric vehicle market despite recent challenges.
An InvestingPro Tip notes that Rivian “holds more cash than debt on its balance sheet,” which could provide some financial flexibility as the company navigates its growth phase. This is particularly relevant given another tip indicating that Rivian is “quickly burning through cash,” a common characteristic of rapidly expanding EV manufacturers.
The company’s financial health is further illuminated by its revenue figures, with InvestingPro data showing a revenue of $4.551 billion over the last twelve months as of Q3 2023. However, Rivian’s profitability remains a concern, as evidenced by its negative gross profit margin of -43.42% and operating income margin of -123.25% for the same period.
Interestingly, despite these financial challenges, InvestingPro Tips reveal that “10 analysts have revised their earnings upwards for the upcoming period,” suggesting some optimism about Rivian’s future performance. This could be a factor in Scaringe’s decision to exercise options and maintain a substantial stake in the company.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips on Rivian, providing deeper insights into the company’s financial position and market performance.
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