Shares of struggling EV producer Rivian (RIVN) are rising today after Renaissance Capital announced a new share purchase. According to a recent Form 13F filing with the Securities & Exchange Commission (SEC), the investment firm increased its RIVN stock position by 20% in Q3 2024. After weeks of trending downward, RIVN stock has finally picked up some momentum, though trading has been volatile.
Interestingly, Renaissance isn’t the only Wall Street firm to up its bet on RIVN stock. Other institutional investors have also doubled down on the firm recently, reflecting an overall bullish outlook on the struggling stock.
What’s Happening with Rivian Stock
Despite struggling recently amid volatile market conditions, RIVN stock has risen 16% over the past six months. This suggests that the electric truck maker is strong enough to hold its own as economic tides shift against it. As of this writing, shares are up 1% and look primed to continue rising, while other EV stocks such as Lucid (LCID) continue to trend upward as well.
Renaissance Capital’s recent bet on Rivian indicates that the fund believes a rebound is likely. After previously owning 887,551 shares of RIVN stock, it has purchased an additional 48,197 shares. This position accounts for 6.6% of Renaissance’s holdings, which makes it the fund’s sixth-largest position.
Over the past year, other prominent investment management firms have also doubled down on RIVN stock. Baillie Gifford & Co purchased 22,194,018 news shares in Q1, and Mirae Asset Global Investments recently added 5,937,605 shares. During Q4, Vanguard Group, one of Rivian’s top institutional investors, added 4,467,881 shares, raising its stake in the EV company to 7%.
Is Rivian Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RIVN stock based on nine Buys, 10 Holds, and no Sells assigned in the past three months, as indicated by the graphic below. Even after a 47% decline in its share price over the past year, the average RIVN price target of $17.63 per share implies roughly 72.42% upside potential.
During the past week, analysts from Barclays, Truist Financial, and Wells Fargo have lowered their RIVN stock price targets while maintaining Hold ratings. However, all three price predictions still imply upside potential from the current Rivian stock price of $10.26 per share.
