Shares of Rivian Automotive Inc (NASDAQ:RIVN) saw notable decreases as investors reacted to recent developments impacting the company. The stock experienced pressure on the backdrop of a broad market selloff, with the S&P 500 down 0.95% and the Nasdaq-100 falling 1.58%. Key concerns for investors stemmed from the company's recent recall announcement and shifting analyst outlooks.
Recall Announcement and Impact on Market Perception
Rivian declared a recall affecting approximately 20,000 vehicles due to a defect with potential safety implications that could elevate crash risk. This announcement prompted caution among investors and prompted several analysts to revise their opinions on the stock. Wolfe Research downgraded Rivian from a 'peer perform' stance to an 'underperform' rating, signaling reduced confidence in the company's near-term prospects. Meanwhile, Piper Sandler maintained a neutral rating for the stock but raised the price target from $14 to $20, highlighting ongoing mixed perspectives within the analyst community.
Production and Delivery Figures: Meeting Expectations
The company shared preliminary fourth-quarter production and delivery data, reporting nearly 11,000 vehicles produced and close to 10,000 deliveries made. Over the course of the full year, Rivian produced 42,284 vehicles and delivered 42,247 – figures that aligned closely with the company's previously stated objectives. These operational achievements indicate that while challenges exist, the company is progressing in its manufacturing and distribution capabilities as planned.
Technical Indicators Reflect Stock Weakness
Rivian's stock performance illustrates signs of short-term decline. The share price is trading approximately 13% below its 20-day simple moving average (SMA) and 1.7% beneath the 50-day SMA, denoting weakening momentum in recent trading sessions. Over the past twelve months, the shares have appreciated roughly 29.72% and remain nearer their 52-week highs than lows, suggesting some longer-term positive trends.
The stock's Relative Strength Index (RSI) currently sits at 49.24, a neutral reading that indicates no immediate overbought or oversold condition in the short term. However, the Moving Average Convergence Divergence (MACD) metric is positioned below its signal line, implying a presence of bearish pressure. This combination of neutral RSI and negative MACD points to a complex momentum situation with mixed signals regarding the stock's direction.
Key Price Levels and Support
- Resistance identified near $18.00
- Support level around $15.50
Upcoming Earnings Expectations
Looking ahead, investors await the company's next earnings release scheduled for February 12. Projections indicate an expected loss per share of 84 cents, a decline from last year's loss of 46 cents per share. Revenue forecasts estimate $1.27 billion, lower than the previous year's revenue of $1.73 billion. These anticipated figures suggest challenges in profitability and revenue performance may persist.
Analyst Consensus and Recent Actions
The overall analyst consensus assigns a Hold rating to Rivian's stock, with an average price target of $16.25. Recent analyst activity reflects a range of opinions regarding the company's trajectory, with some caution due to the recall and earnings outlook, balanced by neutral or slightly optimistic price target adjustments.
Benzinga Edge Scorecard Insights
According to the Benzinga Edge rankings, Rivian demonstrates a bullish momentum score of 87.58, suggesting the stock is outperforming the broader market trend in terms of price movement. This profile is consistent with what is considered a 'High-Flyer' setup, highlighting strong momentum despite recent setbacks.
Exchange-Traded Fund (ETF) Exposure
Rivian holds significant weightings in several clean energy and technology-focused ETFs, including:
- First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) - 7.91% weighting
- iShares Self-Driving EV and Tech ETF (IDRV) - 4.40% weighting
- VanEck Low Carbon Energy ETF (SMOG) - 3.47% weighting
This ETF exposure means that any notable inflows or outflows into these funds could result in automatic buying or selling of Rivian shares, which may contribute to stock price volatility.
Current Price Action and Market Reaction
At the time of reporting, Rivian's stock was trading down 8.81% at $17.19, reflecting the immediate investor response to recent company developments and a cautious broader market environment. The decline underscores the challenges that the recall and mixed analyst stances pose to market confidence.