Sign InRivian Automotive Inc. Stock Shows Mixed Signals Amidst Positive Outlook
Summary
Rivian Automotive Inc's stock shows mixed signals in terms of fundamentals and technical analysis, with a negative EPS and PE ratio but positive news regarding production targets, indicating a 'Hold' status, and investors should wait for improved financial health or overwhelmingly positive technical indicators before making a decision. (Analysis date: August 10, 2023)
Fundamental Analysis
Rivian Automotive Inc., with ticker information RIVN, is an automotive company trading on the NASDAQ. It ended its previous trading session on August 10, 2023, with a closing price of $21.91. Its price fell by $0.44 or 1.97% for the day, establishing a daily low of $21.51 and a high of $22.9. For the year, the company's stock has experienced a high of $40.86 while the lowest it has gone is $11.68. The stock currently holds a market capitalization of $20.41 billion -- a significant level indicating a larger size company.
The company's earnings per share (EPS) stands at -7.1, while its price-to-earnings (PE) ratio is -3.09. The negative values suggest that the company isn’t profitable yet, showing losses. Meanwhile, the shares outstanding equal around 931.51 million. The stock's most recent earnings announcement was on August 8, 2023. This information provides a necessary snapshot of the company's financial health, which is currently showing signs of struggle.
Recent news shows mixed sentiments towards Rivian Automotive Inc. Despite the share price falling about 10%, analysis reveals some bullish tendencies, with target price estimations being raised to $32. The company’s Q2 earnings were said to have surpassed Wall Street’s estimates, and their full-year production target was increased from 50,000 to 52,000 vehicles.
Technical Analysis
Looking into the technical data, Rivian Automotive Inc has a 14-day Relative Strength Index (RSI14) of 38. This figure suggests the stock is nearing oversold territory and may be poised for a price rebound. It is trading above its 50-day moving average of $20.18 and its 200-day moving average of $19.92, which are both positive signs.
The Moving Average Convergence Divergence (MACD) value is 1.80, a positive figure that suggests a bullish trend and a signal for potential buyers. In contrast, the Average True Range (ATR) value is at 8.33, indicating high levels of volatility expected in the future.
For price action, Rivian’s stock has a support level of $21.62 and resistance at $24.7. This information could prove useful in identifying potential exit and entry points for trading.
Prediction
Considering all these technical parameters, Rivian Automotive Inc's stock is showing mixed signals. It's trading above its moving averages, indicating a short-term positive trend but facing bearish tendencies concerning EPS and PE.
Despite the mixed signals, the most recent news indicates a favorable outlook. The increase in production targets suggests improved performance and increased investor confidence.
Considering the advancement above moving averages, it is predicted that the stock price might increase in the next trading day (August 11, 2023) and further in the upcoming trading week.
Final Evaluation
Given the fundamentals of Rivian Automotive Inc, the company's stock is categorized as a 'Hold' for now. While the firm displays promise in expected production, it has yet to turn around its financial struggle, as showcased by negative EPS and PE. It's advisable to wait until financial health improves or technical indicators become overwhelmingly positive.
