Three Stocks: Rivian Auto, Carnival Cruise Lines and SolarEdge

Rivian Automotive

Rivian Automotive (RIVN) shares had their best trading day in years, followed by the stock trading almost 50% higher in after-hours trading on Tuesday.

Shares of the EV manufacturer had a great day during the normal trading session on Tuesday after the company saw Guggenheim initiate shares with a “buy” recommendation.  At the close, Rivian stock was almost 9% higher on news of the buy recommendation, but that was only the beginning.

Shortly after the close, the headline hit that Volkswagen AG is investing an initial $1.0 billion in Rivian Automotive.  The two companies are establishing a joint venture to create industry-leading vehicle software technology.

The news sent Rivian stock almost 50% higher in heavy after-hours trading to a price of nearly $18.

On a side note, shares of Ludic Group (LCID) traded 13% higher in late trading in sympathy of the positive news.

The $18 price on Rivian will almost reverse the year-to-date losses on the stock and likely draw some comments from Wall Street analysts over the coming days that may push prices to the $20 mark.

That $20 price will break through the stock’s bearish intermediate-term trend and shift sentiment towards the stock into a neutral to bullish trend.

Carnival Cruise Lines

Carnival Cruise Lines (CCL) reported their quarterly earnings this morning resulting in a 9% rally for the stock.  The move placed Carnival Cruise Lines’ stock as the best performing stock in the S&P 500 for the day.

Investors were cautious ahead of the report as consumer spending appears to be slowing, but management’s view on the cruise industry suggests that travelers are still willing to open their wallets for experiences.

For the quarter, the company posted earnings that beat expectations by $0.12.  The results also beat quarterly revenue projections.

Additionally, Carnival Cruise Line’s management raised fiscal year 2024 earnings per share above Wall Street’s consensus.

Today’s rally almost puts Carnival Cruise Lines’ shares in positive territory for the year, but there’s more.

Shares have been rallying for the last two months from their 2024 lows around $14.  That rally has shifted Carnival’s 50-day moving average into a bullish trend.

In addition, that 50-day moving average is crossing above the longer-term 200-day moving average to form a “Golden Cross” pattern.  These patterns are indicative of long-term bullish momentum.

The intermediate-term price target for Carnival Cruise Lines’ stock is $20 based on the shift in technical momentum.

CCL Price Chart

SolarEdge Technologies, Inc.

SolarEdge (SEDG) shares traded 20% lower today after the company confirmed their second quarter revenue guidance a month away from the company’s earnings report.

A revenue confirmation is normally good news for a company’s stock, but investors were focused on the additional details that came from SolarEdge’s management.

The company also announced that they would be raising cash through a convertible offering worth $300 million.

The company also alerted investors to the fact that the company had informed certain investors that PM&M Electric, Inc. - a customer that owes the SolarEdge approximately $11.4 million under a secured promissory note - recently filed for Chapter 7 bankruptcy.

The flurry of bad news resulted in Canaccord Genuity lowering their price target from $58 to $38.  Currently the average Wall Street price target for SolarEdge sits at $61.50.

Expect to see more analysts weigh in on the stock as the company’s earnings approach on July 30.

The stock remains in a long-term bearish pattern with a price target of $25.

SEDG Price Chart