CEO RJ Scaringe stepped up and dipped his company’s stock by buying 41,000 shares of the electric car start-up on Monday.
The buyout, released late Monday, is expected to help the stock on Tuesday.
(Ticker: RIVN) The stock has risen about 3.8% in premarket trading.
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Futures rose about 1.8% and 1.5%, respectively.
Tuesday’s jump gives investors some return from the previous day’s fall. Monday’s trading stock fell 6.9%. There were several reasons for the fall.
Decreased by 1.2%. And
(TSLA) stock fell 5.9%.
Trading can affect stocks of other electric vehicle manufacturers.
Probably a factor as to why they’re doing so poorly
(F). Ford has sold 15 million shares since May 9, when an insider’s ban on selling shares after the IPO expired.
Ford Sales takes ownership of Revian below the 10% threshold. That means investors won’t see more sales submitted by traditional automakers. Investors need to hear about Ford sales at the company’s quarterly conference call.
Not knowing what Ford is doing may not be a bad thing. The IPO lockup period was a significant overhang for Rivian shares. In the month leading up to the lockup, Revian stock was 26% lower than the 11% drop in Nasdaq.
With Scaringe’s recent purchase, he owns about 4.5 million shares of Rivian stock. He has about 27 million stock options based on time and business performance.
Now investors must decide whether Scaringe’s purchase represents the lower part of the Rivian stock.
Shares have been hit hard by inflation, supply chain challenges and Rivian’s own challenge to increase production. Coming into trading on Tuesday, the shares are down about 76% year over year.
The stock fall has left the company’s enterprise value, which in this case is basically less than the cash on Revien’s market capitalization balance sheet, about $ 7.5 billion. At the beginning of 2021, the value of the enterprise was close to $ 75 billion.
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