What's Going On With Rivian Stock?

Rivian Automotive, Inc. RIVN shares are trading slightly lower with the broader market Friday. The stock remains up by nearly 50% over the past month. 

The Details:

A recent report from Recurrent Auto shows that electric vehicles are on pace to reach 50% of all vehicles on the road in the United States by 2030, which some view as a gateway to more widespread adoption of EVs. 

According to data from the California New Car Dealers Association, Rivian has seen its vehicle registrations increase in the state by 76.7% this year, while Tesla, Inc. TSLA registrations have fallen 17% compared to last year. 

Cooler June inflation data, an increase in jobless claims and flat U.S. retail sales data have pushed Fed futures to indicate a likely interest rate cut in September, while traders estimate an 88% chance for a 25-basis-point cut. A lower rate environment would be favorable for the EV sector by improving debt conditions and reducing the discount rate applied to future earnings. 

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Several analysts updated coverage on Rivian this week: 

• Wells Fargo analyst Colin Langan maintained an Equal-Weight rating on Rivian and raised the price target from $10 to $18. 
• Morgan Stanley maintained its Overweight rating and raised the price target from $13 to $17. 
• Cantor Fitzgerald reiterated its Overweight rating and maintained a $19 price target.
• Mizuho analyst Vijay Rakesh maintained a Neutral on the stock and raised the price target from $11 to $15 last Friday. 

According to data from Benzinga Pro, Rivian shares are up nearly 50% over the past month and are trading well-above the stock’s 50-day moving average of $12.42. 

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 6.11%, you'll need to buy a share of DYNAMIC ACTIVE ENHANCED YIELD COVER UNITS by July 26, 2024. Once done, you can expect to receive a nominal payout of $0.12 on July 31, 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.

RIVN Price Action: According to Benzinga Pro, Rivian shares are down 1.18% at $16.70 at the time of publication Friday.

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Image: Courtesy of Rivian Automotive, Inc.