Shares of Rivian Automotive, Inc. RIVN dipped over 3% in premarket trading on Monday, giving up some of last week’s gains.
The decline appears to stem from profit-taking activities following a nearly 7% climb in the week ending Feb. 9. Additionally, negative analyst sentiment may have contributed to the sell-off. Barclays analyst Dan Levy downgraded Rivian from Overweight to Equal-Weight, as reported by StreetInsider.
In late January, Levy also reduced his price target for the stock from $27 to $25. This shift marks a departure from the firm’s previous stance in November, when Rivian was considered the sole electric vehicle stock worthy of a bullish recommendation, hailed as an “underappreciated winner in the ICE to EV transition.”
Last week, Rivian announced a reduction in the entry-level pricing for its R1S SUV and R1T electrified pickup truck. Concurrently, the company paused deliveries in Canada to await a software update aimed at enhancing the brightness of its daytime running lamps.
Looking ahead, Rivian faces several upcoming catalysts, including its quarterly earnings report scheduled for Feb. 21 and the global launch of its second-generation EV platform, codenamed R2, on March 7.
In premarket trading, the stock fell 3.24% to $16.14, according to Benzinga Pro data.