Lucid Group (NASDAQ:LCID) Shares Down 7.2% - Here's Why

Key Points

• Lucid shares fell 7.2% to approximately $5.77 in midday trading, with volume 41% below the stock’s average session volume.
• Analyst sentiment remains cautious: Lucid has a consensus “Reduce” rating, with one Buy, seven Hold, and four Sell ratings. The consensus price target is $9.56, while several firms recently lowered targets or issued bearish ratings.
• Lucid’s latest quarterly results showed a wider-than-expected loss of $2.78 per share, despite revenue of $405.35 million exceeding estimates and rising 56.2% year over year.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) were down 7.2% during mid-day trading on Tuesday . The company traded as low as $5.73 and last traded at $5.77. 8,160,136 shares traded hands during mid-day trading, a decline of 41% from the average session volume of 13,841,574 shares. The stock had previously closed at $6.22.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Zacks Research downgraded Lucid Group from a "hold" rating to a "strong sell" rating in a research note on Monday, July 20th. Morgan Stanley set a $5.00 target price on Lucid Group in a research note on Wednesday, May 6th. TD Cowen decreased their target price on Lucid Group from $10.00 to $7.00 and set a "hold" rating for the company in a research report on Wednesday, May 6th. Evercore set a $6.00 price target on Lucid Group in a research note on Monday, May 11th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Lucid Group in a research note on Wednesday, June 24th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $9.56.

Lucid Group Stock Down 7.2%

The company has a market capitalization of $2.27 billion, a P/E ratio of -0.42 and a beta of 0.83. The company has a quick ratio of 0.57, a current ratio of 1.14 and a debt-to-equity ratio of 3.00. The firm has a fifty day simple moving average of $6.23 and a 200-day simple moving average of $7.68.

Lucid Group (NASDAQ:LCID - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($2.78) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.36) by ($0.42). The business had revenue of $405.35 million during the quarter, compared to analyst estimates of $381.59 million. Lucid Group had a negative net margin of 249.21% and a negative return on equity of 1,391.51%. Lucid Group's revenue for the quarter was up 56.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.24) earnings per share. On average, equities research analysts expect that Lucid Group, Inc. will post -12.15 EPS for the current fiscal year.

Institutional Investors Weigh In On Lucid Group

Several institutional investors have recently added to or reduced their stakes in LCID. Lazard Asset Management LLC raised its stake in shares of Lucid Group by 192.6% in the 1st quarter. Lazard Asset Management LLC now owns 304,737 shares of the company's stock valued at $2,904,000 after purchasing an additional 200,604 shares during the period. Vanguard Group Inc. raised its position in Lucid Group by 6.2% in the 4th quarter. Vanguard Group Inc. now owns 12,061,286 shares of the company's stock valued at $127,488,000 after buying an additional 701,826 shares during the last quarter. Virtu Financial LLC bought a new stake in Lucid Group in the 4th quarter valued at approximately $1,355,000. Edgestream Partners L.P. bought a new stake in Lucid Group in the 1st quarter valued at approximately $976,000. Finally, Quantinno Capital Management LP boosted its position in Lucid Group by 246.0% during the 1st quarter. Quantinno Capital Management LP now owns 202,651 shares of the company's stock worth $1,931,000 after acquiring an additional 144,089 shares during the last quarter. 75.17% of the stock is owned by 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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