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Rivian Automotive (NASDAQ:RIVN) Chief Financial Officer Claire McDonough sold 7,247 shares of Class A Common Stock on August 18 at a price of $12.28, for a total value of $88,993. The electric vehicle maker, currently valued at $14.85 billion, maintains a strong liquidity position according to InvestingPro data, with more cash than debt on its balance sheet.
According to a Form 4 filing with the Securities and Exchange Commission, the transaction was executed under a Rule 10b5-1 trading plan, previously adopted by McDonough on August 16, 2024. Following the sale, McDonough directly owns 789,445 shares of Rivian. The stock has shown significant volatility recently, with InvestingPro analysis revealing multiple key insights about the company’s financial health and market position.
On August 15, McDonough also had 28,183 shares withheld by Rivian to cover tax obligations related to the vesting of 59,425 Restricted Stock Units. The shares were withheld at a price of $12.06, for a total value of $339,886. Following the transaction, McDonough directly owns 796,692 shares of Rivian. The company maintains a healthy current ratio of 3.44, indicating strong ability to meet short-term obligations, according to detailed metrics available on InvestingPro.
In other recent news, Rivian Automotive Inc is experiencing a delay in $100 million in revenue due to the rollback of fuel economy rules in the U.S. under the Trump administration. This policy change has impacted Rivian’s ability to finalize credits linked to national fuel economy regulations. Meanwhile, Benchmark has reiterated its Buy rating on Rivian, maintaining an $18 price target, expressing confidence in the company’s growth and production capabilities. However, Morgan Stanley (NYSE:MS) has lowered its price target for Rivian to $12 from $13, citing concerns about the R2 vehicle launch and the challenges posed by the demand conditions for electric vehicles.
DA Davidson also adjusted its price target to $13 from $15, noting profitability challenges and the impact of tariffs on per-vehicle profits. Stifel has reduced its price target to $16 from $18, maintaining a Buy rating but highlighting concerns about tariffs, the end of EV tax credits, and production line preparations for the R2 launch. These developments reflect the varied perspectives of analysts on Rivian’s financial outlook and operational challenges.
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