After hitting their all-time low earlier this week, shares of Rivian Automotive (RIVN 8.50%) are bouncing higher today. The stock gained as much as 11.4% today, and still sits 9.7% above yesterday’s closing share price, as of 2:42 p.m. ET.
The rebound comes as some investors seem to feel the recent low marked a bottom for the stock. One big stock buy this week was reported by Rivian CEO RJ Scaringe. Following that news, Deutsche Bank analyst Emmanuel Rosner reiterated a buy rating on the stock, with a price target representing 153% upside to Rivian’s closing price on Wednesday.
Rosner’s current price target for Rivian stock is $69. In a comment shared by Yahoo! Finance, Rosner stated his case for buying Rivian shares now, saying “We continue to believe the company offers attractive product and a well-thought-out business plan to become a large EV player, with unique characteristics in both hardware and software.”
Scaringe likely believes the same things. He added 41,000 shares to his Rivian holdings, worth over $1 million at the $25.78 share price for his purchase. Scaringe already held more than 4 million shares, so his additional buy represented about 1% of what he already owned.
Investors who want to follow his lead should do so with the right approach. Rivian is just beginning production, and has already lowered production guidance for this year due to supply chain difficulties. It is also battling rising raw material costs just as it tries to focus on ramping up its manufacturing process. While it shouldn’t be considered a safe stock, risk-tolerant investors may find it has a place in a portfolio.