Sign InSummary
Rivian's stock (RIVN) ended at $21.57 on August 11, 2023, experiencing a slight decrease, but with positive news on their Q2 earnings and raised production guidance, there may be an expected rise in stock price for the next trading day.
Stock Overview
Rivian Automotive, Inc. (RIVN) is an electric vehicle manufacturer, publicly traded on the NASDAQ exchange. As of the last close on August 11, 2023, the stock ended at $21.57, evidencing a decrease of $0.34 (-1.55%) from the previous day's close. The stock performed within the range of $21.28 and $21.97. The market capitalization at the close was $20.09B. Trading volume was approximately 30.85M shares, lower than the average volume of 50.62M shares.
Indicator Analysis
The relative strength index (RSI14) suggests that the stock currently stands somewhat on the oversold side at 34. On the Moving Average front, the current price is above the 50-day (20.32) and 200-day (19.87) averages, which could warrant a potential upside. Nevertheless, the MACD of 1.43 suggests potentially bullish territory. Meanwhile, the ATR indicates volatility has been notably high, measuring at 8.08. The share has a support level at $20.43 and resistance at $24.7.
Fundamental Analysis
Rivian's P/E ratio is currently at -3.04 with the company reporting an EPS of -7.1. This indicates the firm is not making a profit on its current operations, which is not uncommon for emerging growth companies like Rivian. The company's outstanding shares are approximately 931.51M.
The discounted cash flow analysis pegs Rivian's value at $34.24, much higher than the current trading price. However, note that DCF valuations are subject to many assumptions. Analyst consensus on the other front suggests a target stock price of $52.85, with a range from the low target of $14 to a high target of $147.
News and Earnings
There seems to be buoyant news around Rivian. The company beat its Q2 revenue and earnings expectations and revised upward its 2023 production guidance. The recent earnings announcement showed a narrower Q2 loss than expected with a year-on-year sales increase. Despite the stock's recent dip after the earnings announcement, the production boost and upgraded production guidance have been encouraging for the market.
Price Prediction and Recommendation
Based on the data, there may be an expected rise in Rivian's stock price for the next trading day, August 14, 2023. Considering the positive news around their Q2 results and raised production guidance, the week ahead could see a positive trend.
Based on the fundamental analysis, the future prospects of Rivian seem promising with its recent production boost and upward revision of its production guidance for 2023. However, a negative EPS and the current stock price below the DCF and consensus target price suggest caution.
Ultimately, considering the technical and fundamental factors, it can be categorized as a Hold. Further positive affirmation in operational progress could make it a significant potential buy candidate in the future.
