The 2023 holiday shopping season has been strong for retailers, spurred by retail promotions and a rise in online and restaurant spending. According to Mastercard SpendingPulse, U.S. retail sales increased 3.1% between Nov 1 and D
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We have multiple adages that have the same underlying message. "Look before you leap." "Haste makes waste." "Measure twice, cut once." The idea behind all of them is that you should think things through before doing something.
Shares of
EV (electric vehicle) maker Rivian (
NASDAQ:RIVN
) are up 28% year-to-date despite macro headwinds impacting EV demand. Additionally, the end of the exclusive agreement with Amazon (
NASDAQ:AMZN
) last month allows Rivian to broaden its customer base, which should positively impact its revenue. As Rivian is expected to benefit from the end of its exclusivity pact with AMZN, it led us to wonder: who owns RIVN?
Now, according to
TipRanks’ ownership page, RIVN is mostly owned by Other Institutional Investors at 35.78%, followed by insiders, Public Companies and individual investors, and mutual funds at 26.30%, 19.49%, and 18.43%, respectively.
Digging Deeper into Rivian’s Ownership Structure
Upon digging deeper into institutional ownership, Vanguard Index Funds stands out as the top shareholder of RIVN stock, holding a stake of approximately 6.50%. Following closely is Vanguard, with a notable ownership stake of 6.44% in the company.
Among the other institutions, the Hedge Fund Confidence Signal is Very Negative on RIVN stock based on the activity of 10 hedge funds. Of all the hedge fund managers tracked by TipRanks,
Daniel Sundheim of D1 Capital Partners has the largest position in RIVN on an absolute basis at roughly $327.4 million. This equates to about 4.72% of his total portfolio.
While the hedge fund confidence signal remains Very Negative, investor sentiment is Positive on Rivian stock in the short term. Moreover, of the 707,900 portfolios monitored by TipRanks, 2.5% have invested in RIVN stock.
Is Rivian Stock Expected to Rise?
Rivian stock is expected to increase by 8.65% over the next 12 months based on
analysts’ average price target of $25.63 per share. Further, analysts are cautiously optimistic about RIVN’s prospects.
It has received 13 Buy, seven Hold, and one Sell recommendations for a Moderate Buy consensus rating.
Bottom Line
The ownership structure of Rivian stock demonstrates a diversified mix of institutional, insider, and individual investors. Rivian is taking measures to ramp up production, improve cost efficiency, and
strengthen its balance sheet, which is positive. However, macro challenges keep analysts cautiously optimistic about its prospects.
Disclosure
When the going gets tough on Wall Street, professional and everyday investors have a tendency to seek out profitable, time-tested, industry-leading businesses to lead them through the storm.
Mastercard SpendingPulse’s preliminary insights showed that U.S. retail sales (excluding automotive) increased by 3.1% this holiday season (from November 1 through December 24). As consumers spend more, investors should keep a close watch on the shares of the e-commerce giant (
NASDAQ:AMZN
) and the world’s largest retailer, Walmart (
NYSE:WMT
).
Mastercard SpendingPulse assesses retail sales both in physical stores and online, encompassing various payment methods.
According to a
Goldman Sachs survey, Amazon and Walmart will likely emerge as top shopping destinations during this holiday season. With this background, let’s look at what analysts recommend for AMZN and WMT stocks.
What is the Prediction for Amazon Stock?
Amazon stock is up approximately 83% year-to-date. Moreover, Wall Street analysts see further upside in AMZN stock from current levels. Amazon’s focus on fast delivery and enhancing Prime membership benefits drive shoppers to its platform. Furthermore, strength in cloud and advertising business and investments in
Artificial Intelligence (AI) bodes well for future growth.
With 43 unanimous Buy recommendations, AMZN stock has a Strong Buy consensus rating. Further, the
analysts’ average price target is $180.67 on AMZN stock, implying 17.8% upside potential from current levels.
Is Walmart a Buy or Sell Right Now?
Walmart stock is a Buy right now based on analysts’ consensus rating. Its value pricing strategy drives shoppers to its stores and online platform. Moreover, the expansion of its pickup and store-fulfilled delivery service and initiatives such as early access to the best savings events throughout the holiday season is likely to boost its top line in Q4.
WMT stock has a Strong Buy consensus rating, reflecting 25 Buy and five Hold recommendations. Walmart stock has gained about 12% year-to-date. Moreover,
analysts’ average price target of $180.79 implies 15.59% upside potential from current levels.
Bottom Line
These retailers’ focus on offering value pricing and improving membership benefits makes them a favorite destination for shopping. Thus, they remain well-positioned to capitalize on higher holiday spending.
Disclosure
Artificial intelligence startup Anthropic has projected it will generate more than $850 million in annualized revenue by the end of 2024, the Information reported on Tuesday, citing two people with knowledge of the company's financial picture.
Fool.com contributor Parkev Tatevosian highlights one of Warren Buffett's best artificial intelligence (AI) stocks in his Berkshire Hathaway portfolio.