Rivian Automotive (RIVN:NSD), the electric vehicle (EV) manufacturer, recently caught the attention of investors with an unexpectedly high volume of call options trading. The surge in call options indicates increased interest in the company and has piqued the curiosity of market participants. This blog post delves into the details surrounding Rivian Automotive’s options trading activity and explores the potential implications for the Rivian stock forecast and investors looking to invest in the stock.
Unprecedented Options Trading:
On Friday, Rivian Automotive (RIVN:NSD) experienced an unusual surge in call options trading. A staggering 142,160 call options were acquired by stock investors, representing a notable 48% increase compared to the average daily volume of 96,333 call options. The substantial increase in call options suggests a growing optimism and interest among investors regarding Rivian stock forecast.
Rivian Stock Forecast-Analyst Outlook:
Various equities research analysts have shared their perspectives on Rivian stock forecast. Evercore ISI, for instance, lowered the Rivian stock price target from $35.00 to $25.00, while Wedbush reduced it from $37.00 to $25.00.
Piper Sandler adjusted its price objective from $15.00 to $14.00, and Morgan Stanley lowered its target price from $26.00 to $24.00. Wells Fargo & Company revised its target price from $32.00 to $18.00.
Despite these downward revisions, 11 analysts have given Rivian Automotive a buy rating, while four recommend holding the stock. Only two analysts have rated the stock as a sell. According to Stock Target Advisor, the consensus analyst rating for Rivian Automotive stock is currently categorized as “Strong Buy,” with an average target price of $27.74.
Rivian Stock Performance and Recent Earnings:
Rivian stock experienced a slight decline of 1.3% on the day in question, closing at $13.87. RIVN stock has been trading between a 52-week high of $40.86 and a 52-week low of $11.68. It is worth noting that the company’s 50-day moving average price stands at $13.81, while the 200-day moving average price is $17.60.
In terms of quarterly earnings, Rivian Automotive’s most recent report, released on May 9th, surpassed analysts’ expectations. The company reported earnings per share (EPS) of ($1.25), beating the consensus estimate of ($1.51) by $0.26. The quarterly revenue amounted to $661.00 million, slightly lower than the estimated $661.97 million. Despite a negative net margin and return on equity, Rivian Automotive’s revenue for the quarter marked a significant increase of 595.8% compared to the same period last year. Analysts predict that Rivian Automotive will post an EPS of -5.43 for the current fiscal year.
Insider Trading Activity:
Insider trading activity has also made headlines recently at Rivian Automotive. CFO Claire Mcdonough sold 3,625 shares of the Rivian stock, with the transaction totaling $49,698.75. Following this sale, Mcdonough now holds 72,304 shares valued at approximately $991,287.84. Additionally, CFO Claire Mcdonough sold another 3,625 shares, and CAO Jeff Baker sold 20,000 shares of Rivian Automotive stock.
Rivian Stock Forecast-Hedge Fund Interest:
Several prominent hedge funds have made notable changes to their positions in Rivian Automotive. BlackRock Inc. increased its holdings by 44.7%, Moneta Group Investment Advisors LLC acquired a new position, Vanguard Group Inc. lifted its stake by 46.4%, FMR LLC increased its stake by 32.8%, and Mirae Asset Global Investments Co. Ltd. boosted its stake significantly.
Conclusion:
The unusually large volume of call options trading in Rivian Automotive (RIVN:NSD) has captured the attention of investors. While analysts have provided mixed outlooks, with a few reducing price targets, the consensus rating remains “Strong Buy.” As the EV industry continues to evolve rapidly, Rivian Automotive’s market performance and stock movements will undoubtedly be closely monitored by investors and enthusiasts alike.
