Sign InSummary
Rivian's stock (RIVN) had a 2.09% decrease on July 21, 2023, but with increased trading volume and upward momentum, it is predicted to show an increase in trading value on July 24, and is evaluated as a Buy based on analyst targets, DCF, and MA trends; however, caution should be exercised due to potential volatility, the high RSI, attention from short sellers, and the company's lack of profitability and negative EPS.
Introduction
Rivian Automotive, Inc., under the ticker "RIVN," operates from the NASDAQ exchange. This electric vehicle maker's stock ended July 21, 2023, at a price of $25.27, marking a 2.09% decrease ($0.54). The day's trading fluctuated between $24.32 and $27.16, while the year's movement saw its value range from a low of $11.68 to a high of $40.86.
Volume Analysis
On July 21, the stock's volume reached 80.61 million compared to an average volume of 43.55 million. This increased trading activity could be indicative of heightened interest in the company, potentially due to recent news or financial reporting.
Performance Indicators
The 50-day moving average (MA) for RIVN is $16.85, and its 200-day MA stands at $20.40. Both MAs are lower than the last closing price, suggesting an upward trend. The company's RSI14 is 79, indicating the stock might be overbought. The MACD (3-month) of 4.03 further underlines this upward momentum.
Financial Ratios
RIVN's earnings per share (EPS) is -$7.4, and the price-to-earnings (PE) ratio is -3.41, signifying that the company is currently not profitable.
Market Capitalization and Outstanding Shares
Rivian has a market capitalization of $23.54 billion with 931.51 million shares outstanding.
Analyst Projections and Discounted Cash Flow (DCF)
Analysts show a wide range in their target prices for RIVN, from a low of $14 to a high of $147, with a consensus target of $53.95 and a median target of $35. These targets suggest potential growth based on the current trading price. Additionally, the company's DCF is $37.94, suggesting the stock might be undervalued.
Recent News
Multiple developments have influenced RIVN's stock. Tesla's Cybertruck's production rollout impacted Rivian's stock, contributing to the recent price decline. Despite a pullback, RIVN shares recovered towards a seven-month high. It's also worth considering that the company holds nearly $12 billion in cash, which is being reinvested into its early-stage business. Rivian shares have also attracted significant attention from short sellers, creating potential volatility.
Stock Prediction and Final Evaluation
Given these factors, RIVN may show an increase in trading value on July 24, 2023, based on its trending upward momentum. However, the high RSI may soon lead to a brief adjustment period as the stock could be seen as overbought. For the upcoming week, Rivian is expected to continue its upward trend but may experience some volatility due to short sellers' interest. The company's strong cash position provides some financial stability, potentially mitigating risk.
With analyst targets and DCF suggesting potential growth, and considering RIVN's upward momentum observed from the MAs, Rivian's stock is evaluated as a "Buy." Nonetheless, investors should remain cautious of potential volatility given the high RSI and attention from short sellers. The company's lack of profitability and the negative EPS should also be considered.
