5 Investors Betting Big on Rivian (RIVN) Stock in 2023


  • An internal email showed that Rivian (RIVN) will lay off about 6% of its workforce.
  • Amazon (AMZN) is the largest shareholder of the company, with a 158.36 million share stake.
  • RIVN stock is up 13.5% year-to-date.
RIVN stock - 5 Investors Betting Big on Rivian (RIVN) Stock in 2023

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Rivian (NASDAQ:RIVN) stock closed higher by 1.5% after the electric vehicle (EV) company informed employees that it would lay off about 6% of its workforce. Rivian employs about 14,000 employees, so about 840 employees will be affected by the layoffs.

In an internal email obtained by Reuters, CEO RJ Scaringe explained that the layoffs were enacted to increase operating efficiency and profitability and to prepare for a ramp-up in production. Scaringe also added that the workforce reduction would not affect manufacturing jobs at Rivian’s facility in Normal, Illinois. The company is currently producing the R1T, R1S and electric delivery van (EDV), with plans to create a smaller R2 vehicle platform in 2026.

Meanwhile, investors are speculating that Rivian may soon lower the prices for the R1T and R1S following Tesla (NASDAQ:TSLA) and Ford (NYSE:F) price cuts. The company will report its fourth-quarter earnings on Feb. 28, so more details may be released by then or before. Analysts are expecting revenue of $746.38 million, up 1,282% year over year, and an earnings per share (EPS) loss of $1.93. That would bring total 2022 revenue and EPS to $1.73 billion and a loss of $6.72, respectively.

The 5 Top Shareholders of RIVN Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 565 13F filers disclosed ownership of RIVN, an increase of 35 filers from the prior quarter. Meanwhile, the institutional put/call ratio sits at 0.73, up from 0.53. That’s equivalent to 16.89 million puts and 23.10 million calls, implying a bullish options stance. With that in mind, let’s take a look at the top shareholders of Rivian:

  1. Amazon (NASDAQ:AMZN): 158.36 million shares. Amazon’s stake is accurate as of Dec. 31 and remained unchanged during Q4.
  2. T Rowe Price (NASDAQ:TROW): 116.6 million shares. T. Rowe’s stake is accurate as of Dec. 31. The firm sold 24.02 million shares during Q4.
  3. BlackRock (NYSE:BLK): 46.56 million shares. BlackRock purchased 14.38 million shares during Q3.
  4. Capital Research Global Investors: 43.37 million shares. Capital Research sold 1.54 million shares during Q3.
  5. Vanguard: 36.23 million shares. Vanguard purchased 11.48 million shares during Q3.

Please note that this list only includes investors who have filed at least a Q3 position update. For example, Ford owns 101.94 million shares, although that figure is only accurate as of Q4 of 2021.

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 InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/02/5-investors-betting-big-on-rivian-rivn-stock-in-2023/.

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