Trading Strategies For Rivian Stock Before And After Q1 Earnings

Rivian Automotive, Inc RIVN was trading slightly higher on Tuesday as the company heads into its first-quarter earnings print after the market close.

Analysts expect the company to report EPS of negative $1.58 on revenues of $642.22 million for the quarter ending March 31.

On Tuesday, Truist Securities analyst Jordan Levy maintained a Buy rating on Rivian and cut the price target from $44 to $28. The new price target suggests about 100% upside for the stock. Wells Fargo analyst Colin Langan maintained an Equal-Weight rating on the stock and dropped the price target from $18 to $14, which is in line with Rivian’s current share price.

When Rivian printed its fourth-quarter earnings report on Feb. 28, the stock plunged about 18% the following day before continuing in its downtrend, which brought Rivian to an April 26 low of $11.68.

For that quarter, Rivian reported earnings per share of $1.73, missing a Street estimate of $1.94 per share. The company also posted a top-line miss, reporting revenues of $633 million, compared to the $742.39 million consensus estimate.

From a technical perspective, Rivian looks bullish heading into the event, trading in an uptrend. Of course, holding a position in a stock over earnings can be akin to gambling, as stocks can rise following an earnings miss and fall after reporting a beat.

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The Rivian Chart: Rivian reversed into its most recent uptrend on April 26 and has been making a consistent series of higher highs and higher lows. The stock’s most recent higher low was formed on May 4 at $12.59 and the most recent confirmed higher high was printed at the $13.13 mark the day prior.

• On Monday, Rivian printed a bullish Marubozu candlestick, which suggested higher prices could come on Tuesday. On Tuesday, the stock opened lower but was working to print a second consecutive Marubozu candlestick, which indicates higher prices could come Wednesday.
• If Rivian receives a bullish reaction to its earnings print and pops higher, the stock will regain the 50-day simple moving average, which would give bullish traders more confidence going forward. If the stock drops following the news, the downtrend could be negated and the stock could retrace to back-test the April 26 low.
• Rivian has resistance above at $15.80 and $21 and support below at $11.68 and the psychologically important $10 mark.

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Photo: Rivian