Positive week for Rivian Automotive, Inc. (NASDAQ:RIVN) institutional investors who lost 31% over the past year

In This Article:

Key Insights

  • Institutions' substantial holdings in Rivian Automotive implies that they have significant influence over the company's share price

  • A total of 7 investors have a majority stake in the company with 51% ownership

  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in Rivian Automotive, Inc. (NASDAQ:RIVN) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutional investors would probably welcome last week's 8.3% increase in the share price after a year of 31% losses as a sign that returns may to begin trending higher.

Let's take a closer look to see what the different types of shareholders can tell us about Rivian Automotive.

See our latest analysis for Rivian Automotive

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Rivian Automotive?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Rivian Automotive does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Rivian Automotive's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in Rivian Automotive. Our data shows that Amazon.com, Inc. is the largest shareholder with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 11% and 7.4%, of the shares outstanding, respectively. Additionally, the company's CEO Robert Scaringe directly holds 1.1% of the total shares outstanding.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.