Lucid Group (NASDAQ:LCID) Shares Down 5.1% - Here's Why

Key Points

• Shares fell 5.1% intraday to about $9.40 (low $9.38) on Friday, with ~6.0M shares traded—roughly 17% below the stock's average daily volume.
• Analyst sentiment is weak: MarketBeat shows a consensus "Reduce" with a $13.14 target and mixed brokerage action, including Morgan Stanley's downgrade to "underweight" and a $10 price target.
• Balance-sheet and valuation concerns: Lucid has a negative P/E, high leverage (debt-to-equity ~3.0) and a sub-1 quick ratio (0.83), indicating liquidity and profitability pressures despite a $3.08B market cap.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) dropped 5.1% during mid-day trading on Friday . The stock traded as low as $9.38 and last traded at $9.40. Approximately 6,005,235 shares traded hands during trading, a decline of 17% from the average daily volume of 7,192,427 shares. The stock had previously closed at $9.91.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on LCID. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $10.00 price target on shares of Lucid Group in a research note on Wednesday, February 25th. Morgan Stanley lowered shares of Lucid Group from a "buy" rating to an "underweight" rating and reduced their price objective for the company from $30.00 to $10.00 in a report on Monday, December 8th. Benchmark reaffirmed a "buy" rating on shares of Lucid Group in a research report on Thursday, February 19th. Robert W. Baird set a $14.00 target price on shares of Lucid Group in a research note on Tuesday, January 6th. Finally, Citigroup began coverage on shares of Lucid Group in a research report on Wednesday, March 18th. They set a "buy" rating and a $17.00 price target for the company. Two analysts have rated the stock with a Buy rating, five have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, Lucid Group currently has an average rating of "Reduce" and a consensus price target of $13.14.

Lucid Group Stock Performance

The company has a quick ratio of 0.83, a current ratio of 1.25 and a debt-to-equity ratio of 3.00. The firm has a 50-day moving average price of $10.30 and a 200 day moving average price of $14.20. The firm has a market capitalization of $3.08 billion, a PE ratio of -0.77 and a beta of 1.12.

Hedge Funds Weigh In On Lucid Group

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Royal Bank of Canada lifted its position in shares of Lucid Group by 9.5% during the first quarter. Royal Bank of Canada now owns 110,716 shares of the company's stock worth $267,000 after purchasing an additional 9,578 shares in the last quarter. AQR Capital Management LLC grew its holdings in shares of Lucid Group by 89.9% in the first quarter. AQR Capital Management LLC now owns 537,801 shares of the company's stock valued at $1,226,000 after purchasing an additional 254,551 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of Lucid Group by 103.2% in the first quarter. NewEdge Advisors LLC now owns 37,987 shares of the company's stock valued at $92,000 after purchasing an additional 19,294 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in Lucid Group by 112.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 5,440,620 shares of the company's stock worth $13,166,000 after buying an additional 2,874,603 shares during the period. Finally, Empowered Funds LLC increased its stake in Lucid Group by 11.3% during the 1st quarter. Empowered Funds LLC now owns 110,844 shares of the company's stock worth $268,000 after buying an additional 11,252 shares during the period. 75.17% of the stock is currently owned by hedge funds and other institutional investors.

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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