CEO RJ Scaringe Just Bought Rivian (RIVN) Stock. Here’s Why.

  • Rivian (NASDAQ:RIVN) CEO RJ Scaringe purchased 41,000 shares of RIVN stock on May 16
  • This was Scaringe’s first insider transaction since Nov. 15
  • The CEO now directly owns 169,175 shares
rivn stock sign outside the company's HQ in Silicon Valley
Source: Michael Vi / Shutterstock

Shares of Rivian (NASDAQ:RIVN) are in full focus after CEO RJ Scaringe disclosed a $1 million insider purchase. RIVN stock has had a volatile past week, as May 11 marked the initial public offering (IPO) lockup expiration date for early investors and insiders. Ford (NYSE:F), an early investor, reporting selling 7 million shares at an average price of $26.88 per share on May 13. Before that, the legacy automaker reported selling 8 million shares at an average price of $26.80 per share. After the sales, Ford still owns 86.94 million shares.

Despite the IPO lockup expiration, Scaringe seems confident in buying up more shares. Let’s get into the details.

CEO RJ Scaringe Buys RIVN Stock

On May 16, Scaringe purchased 41,000 shares at an average price of $25.77 per share. Scaringe may have also been waiting for the lockup expiration to expire until buying shares at a lower price. After the purchase, the CEO now directly owns a total of 169,175 shares. Those shares are worth around $4.4 million at current prices. In addition, he owns 4.34 million shares through a trust and limited liability company.

The purchase on May 16 was Scaringe’s first purchase of RIVN since Nov. 15. On that day, he purchased 128,175 shares at an average price of $78. Several other insiders reported purchasing shares on Nov. 15 as well, such as CFO Claire McDonough.

Since Nov. 15, there have been no insider transactions besides Scaringe’s purchase and Ford’s sale.

Who Else Is Betting Big on Rivian?

Yesterday, May 16, marked the deadline for institutional investors to submit a Q1 13F filing. The 13F filing details institutional investors’ positions as of March 31. As a result, retail investors are able to see what these investors own, although with a delay. Several prominent funds reported selling shares of RIVN during Q1, such as Coatue Management, BlackRock (NYSE:BLK) and FMR. However, all three funds still own billion-dollar positions in the electric vehicle (EV) company.

Meanwhile, T. Rowe Price reported (NASDAQ:TROW) purchasing an additional 715,789 shares, making it the largest shareholder with a 162.79 million share position. On top of that, famed investor George Soros reported keeping his position of 19.83 million shares constant during the quarter.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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