Rivian Automotive, Inc. ( RIVN ) shares are trading slightly lower with the broader market Friday. The stock remains up by nearly 50% over the past month. 

The Details:

A recent report from Recurrent Auto shows that electric vehicles are on pace to reach 50% of all vehicles on the road in the United States by 2030, which some view as a gateway to more widespread adoption of EVs. 

According to data from the California New Car Dealers Association, Rivian has seen its vehicle registrations increase in the state by 76.7% this year, while Tesla, Inc. ( TSLA ) registrations have fallen 17% compared to last year. 

Cooler June inflation data, an increase in jobless claims and flat U.S. retail sales data have pushed Fed futures to indicate a likely interest rate cut in September, while traders estimate an 88% chance for a 25-basis-point cut. A lower rate environment would be favorable for the EV sector by improving debt conditions and reducing the discount rate applied to future earnings. 

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Several analysts updated coverage on Rivian this week: 

Wells Fargo analyst Colin Langan maintained an Equal-Weight rating on Rivian and raised the price target from $10 to $18. 

Morgan Stanley maintained its Overweight rating and raised the price target from $13 to $17. 

Cantor Fitzgerald reiterated its Overweight rating and maintained a $19 price target.

Mizuho analyst Vijay Rakesh maintained a Neutral on the stock and raised the price target from $11 to $15 last Friday. 

According to data from Benzinga Pro, Rivian shares are up nearly 50% over the past month and are trading well-above the stock’s 50-day moving average of $12.42. 

Is RIVN A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Rivian Automotive ( RIVN )‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Rivian Automotive ( RIVN ) does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 6.11%, you'll need to buy a share of DYNAMIC ACTIVE ENHANCED YIELD COVER UNITS by July 26, 2024. Once done, you can expect to receive a nominal payout of $0.12 on July 31, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Rivian Automotive ( RIVN ) will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

RIVN Price Action: According to Benzinga Pro, Rivian shares are down 1.18% at $16.70 at the time of publication Friday.

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Image: Courtesy of Rivian Automotive, Inc. ( RIVN )