Lucid Group, Inc. (NASDAQ:LCID) Given Average Rating of "Reduce" by Brokerages

Key Points

• Broker consensus is "Reduce": Eleven brokerages covering Lucid issued a consensus rating of "Reduce" (3 sell, 7 hold, 1 buy) with an average 12-month price target of $10.50.
• Q1 results missed and guidance suspended: Lucid reported a large EPS loss of ($3.46) (missed by $0.93) and revenue of $282.5M (vs. $358.5M expected), drove inventory write-downs, widened losses and prompted management to suspend full-year production guidance and launch a business review.
• Analysts have cut targets and downgraded the stock (e.g., Morgan Stanley to $5, TD Cowen to $7, RBC to $8), while investor litigation and production/inventory overhangs add further near-term uncertainty for the stock trading around $6 and a market cap near $2B.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) has been assigned a consensus rating of "Reduce" from the eleven brokerages that are presently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $10.50.

LCID has been the topic of a number of research reports. TD Cowen cut their price objective on Lucid Group from $10.00 to $7.00 and set a "hold" rating on the stock in a report on Wednesday. Citigroup started coverage on Lucid Group in a research report on Wednesday, March 18th. They issued a "buy" rating and a $17.00 target price on the stock. Royal Bank Of Canada cut their price target on shares of Lucid Group from $10.00 to $8.00 and set a "sector perform" rating on the stock in a report on Monday, April 13th. Bank of America initiated coverage on shares of Lucid Group in a research report on Wednesday, March 4th. They set an "underperform" rating and a $10.00 price target for the company. Finally, Zacks Research upgraded shares of Lucid Group from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 5th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LCID. Tudor Investment Corp ET AL acquired a new position in shares of Lucid Group during the 3rd quarter valued at about $1,361,978,000. Y Intercept Hong Kong Ltd acquired a new stake in Lucid Group during the third quarter worth about $2,248,000. SG Americas Securities LLC increased its position in Lucid Group by 65.9% during the fourth quarter. SG Americas Securities LLC now owns 181,153 shares of the company's stock worth $1,915,000 after purchasing an additional 71,966 shares during the last quarter. Calamos Advisors LLC purchased a new position in Lucid Group during the fourth quarter worth about $1,586,000. Finally, Prakash Investment Advisors LLC raised its stake in Lucid Group by 49.4% during the fourth quarter. Prakash Investment Advisors LLC now owns 15,100 shares of the company's stock worth $160,000 after purchasing an additional 4,990 shares during the period. 75.17% of the stock is currently owned by institutional investors and hedge funds.

Lucid Group News Summary

Here are the key news stories impacting Lucid Group this week:

• Positive Sentiment: Liquidity boost — management discussed cash-raising efforts that improve near-term runway, which partially offsets concern about losses. TipRanks: Lucid’s Earnings Call: Cash Raised, Losses Deepen
• Positive Sentiment: Top-line growth year-over-year — revenue rose roughly 20% YoY, showing demand progress even as margins deteriorated. Seeking Alpha: Q1 Results Presentation
• Neutral Sentiment: Analyst price-target moves mixed — TD Cowen cut its target to $7 and set a Hold rating (limited upside vs. earlier targets), reflecting greater near-term uncertainty but not a consensus sell signal. AmericanBankingNews: TD Cowen PT Lowered to $7
• Negative Sentiment: Q1 miss and wider loss — Lucid reported a significantly larger loss and missed revenue/earnings estimates, driven by inventory write-downs, higher costs and supplier issues, which directly pressure valuation and near-term cash burn forecasts. Zacks: LCID Q1 Earnings Miss on Inventory Write-Downs
• Negative Sentiment: Guidance suspended — management paused full-year production guidance and announced a business review under incoming leadership, adding uncertainty about volumes and cost cuts this year. Yahoo Finance: Lucid Slides After Suspending Full-Year Production Outlook
• Negative Sentiment: Analyst downgrades and steep target cuts — Benchmark downgraded LCID from Buy to Hold and Morgan Stanley halved its target to $5, reflecting heightened execution risk and prompting selling pressure. MSN: Benchmark Downgrades Lucid 247WallSt: Morgan Stanley Slashes Lucid PT
• Negative Sentiment: Bloated inventory & production cuts — Lucid says it will adjust production after ending Q1 with excess inventory, which can weigh on near-term margins and require deeper discounts or slower builds. Electrek: Lucid Will Adjust EV Production After Bloated Inventory
• Negative Sentiment: Investor litigation risk — Pomerantz launched an investor investigation alleging potential disclosure issues, which adds legal overhang and could increase future costs. PR Newswire: Pomerantz Investor Alert

Lucid Group Trading Down 2.3%

NASDAQ:LCID opened at $6.05 on Friday. The company has a market capitalization of $1.98 billion, a P/E ratio of -0.46 and a beta of 0.88. The company has a current ratio of 1.02, a quick ratio of 0.83 and a debt-to-equity ratio of 3.00. Lucid Group has a 12 month low of $5.62 and a 12 month high of $33.70. The firm has a fifty day simple moving average of $8.85 and a 200-day simple moving average of $11.37.

Lucid Group (NASDAQ:LCID - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported ($3.46) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.53) by ($0.93). Lucid Group had a negative return on equity of 304.01% and a negative net margin of 248.09%.The firm had revenue of $282.47 million during the quarter, compared to analysts' expectations of $358.46 million. During the same quarter last year, the business earned ($0.20) EPS. The business's revenue was up 20.2% on a year-over-year basis. On average, equities research analysts anticipate that Lucid Group will post -10.03 earnings per share for the current year.

Lucid Group Company Profile

Lucid Group, Inc is a California-based electric vehicle manufacturer specializing in the design, engineering and production of luxury electric sedans. Its flagship model, the Lucid Air, features a proprietary battery and powertrain architecture that emphasizes energy efficiency, extended driving range and high performance. In addition to passenger vehicles, Lucid offers charging solutions and software-enabled services aimed at optimizing the ownership experience and accelerating adoption of zero-emission transportation.

The company was founded in 2007 under the name Atieva, initially focusing on battery technology and electric powertrains for other automakers before transitioning to its own branded vehicles.

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