What's Going On With Rivian Stock?

Rivian Automotive Inc RIVN shares are trading lower by 7.7% to $15.08 during Tuesday’s session.
Shares of several stocks in the broader automotive sector are falling after inflation for January 2024 dipped slightly but missed economists’ forecasts.

In the latest report, the annual Consumer Price Index (CPI) inflation rate dropped to 3.1% from 3.4%, although it was higher than the anticipated 2.9%. Monthly CPI rose by 0.3%, exceeding the expected 0.2% increase. Core CPI, which excludes food and energy prices, remained unchanged at 3.8%, contrary to the expected decrease to 3.7%…Read More

Why This Matters

Rivian, as an electric vehicle manufacturer, could be affected by changes in inflation rates due to various factors. If inflation rates don’t fall as much as expected, it could signal ongoing or potentially increasing cost pressures for the company.

Higher inflation rates can lead to increased costs for raw materials, labor, and other operational expenses. This could potentially squeeze Rivian’s profit margins.

Investors may interpret the higher-than-expected inflation rate as a sign of potential challenges ahead for Rivian in terms of managing costs and maintaining profitability.

Consequently, investors might sell off Rivian stock, causing its price to fall.

See Also: Snapchat Previously Rejected Mark Zuckerberg’s $3B Buyout

Is RIVN A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Rivian Automotive‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Rivian Automotive does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 20.52%, you'll need to buy a share of Herzfeld Caribbean Basin by the 26th March, 2024. Once done, you can expect to receive a nominal payout of $0.14 on 10th May, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Rivian Automotive will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, RIVN has a 52-week high of $28.06 and a 52-week low of $11.68.