NEW YORK – Shares of electric vehicle manufacturer Rivian Automotive, Inc. (NASDAQ: RIVN) posted a solid gain in the latest trading session, closing on a positive note. The stock ended the day at 0.20 or 1.55%.
The trading day for Rivian was marked by a dramatic surge in the morning. After opening at $12.90, the stock rocketed to a session high of $13.45. While it gave back some of those initial gains, it successfully managed to consolidate at a higher level for the remainder of the day, closing well above its previous close of $12.87. The upward momentum continued modestly in after-hours trading.
Interestingly, today’s significant price move occurred on relatively light trading volume. Approximately 21.2 million shares were traded, which is below the stock’s three-month average volume of over 30.6 million shares.
Key Financial Metrics Under the Hood
A look at Rivian’s financial data provides important context for investors:
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Profitability Status: Rivian is still in its growth phase and is not yet profitable. This is reflected in its negative Earnings Per Share (EPS TTM) of -3.69 and the absence of a P/E Ratio.
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Analyst Outlook: Wall Street analysts have a 1-year target estimate of $14.88 for RIVN. This target suggests a potential upside of approximately 13.8% from the current closing price.
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Volatility: With a Beta of 1.86, Rivian’s stock is considered highly volatile, exhibiting price swings that are theoretically almost twice as large as the overall market.
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Market Position: The stock is trading near the middle of its 52-week range of $9.50 to $18.85, indicating it has recovered from its lows but is still well off its yearly highs.
Should You Buy or Sell RIVN Stock Today?
The day’s performance and underlying data offer points for both bullish and bearish investors.
The Bullish View (Buying or Holding): Those optimistic about Rivian would highlight the strong upward price move and the stock’s ability to hold its gains. The analyst consensus price target of $14.88 provides a clear case for potential short-to-medium-term upside. This could be seen as a sign of renewed investor confidence.
The Bearish View (Selling or Waiting): Cautious investors would point to the company’s lack of profitability and high volatility as significant risks. The fact that today’s price surge occurred on below-average volume could also be a concern, potentially suggesting the move lacked broad market conviction.
Our Opinion
Rivian (RIVN) remains a quintessential high-risk, high-reward investment in the competitive electric vehicle space. Its valuation is heavily dependent on its future production, delivery numbers, and eventual path to profitability, rather than current earnings.
Today’s price action is technically constructive, showing strength and resilience. However, the fundamentals, particularly the negative EPS, underscore the speculative nature of the stock. RIVN is most appropriate for investors with a long-term time horizon and a high tolerance for volatility who are betting on the company’s vision and execution in the EV market.
Frequently Asked Questions (FAQ) about RIVN Stock
1. What was the closing price of Rivian (RIVN) stock today?
Rivian stock closed at $13.07, up 1.55% for the day.
2. Is Rivian a profitable company?
No. According to the data, Rivian has a negative EPS (TTM) of -3.69 and is not currently profitable.
3. What is the 1-year analyst price target for Rivian stock?
The 1-year analyst target estimate for RIVN is $14.88.
4. How volatile is RIVN stock?
The stock is considered highly volatile, with a Beta of 1.86, indicating it tends to move more than the general market.
5. What was the day’s trading range for Rivian?
The stock traded in a range between $12.90 and $13.45.
6. Was today’s trading volume for RIVN considered high?
No, today’s trading volume of about 21.2 million shares was below its three-month average of over 30.6 million shares.
