Lucid Group (NASDAQ:LCID) Shares Down 7.3% Following Analyst Downgrade

Key Points

• Shares dropped 7.3% to about $10.05 after Royal Bank of Canada cut its price target from $20 to $14, with intraday volume jumping roughly 80% above average.
• Lucid reported weaker-than-expected results—EPS of -$2.65 missed the consensus and revenue of $336.6M trailed estimates—leaving the company materially unprofitable with deeply negative margins and ROE.
• Analyst sentiment is tepid: MarketBeat shows an average rating of "Reduce" and a $18.92 target, amid several recent downgrades; the stock has a market cap of about $3.26B and ~75% institutional ownership.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report)'s stock price traded down 7.3% on Thursday after Royal Bank Of Canada lowered their price target on the stock from $20.00 to $14.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Lucid Group traded as low as $10.03 and last traded at $10.05. 12,549,625 shares traded hands during mid-day trading, an increase of 80% from the average session volume of 6,988,717 shares. The stock had previously closed at $10.84.

A number of other analysts have also commented on LCID. Weiss Ratings reiterated a "sell (e+)" rating on shares of Lucid Group in a report on Monday, December 29th. Morgan Stanley lowered shares of Lucid Group from a "buy" rating to an "underweight" rating and lowered their price objective for the stock from $30.00 to $10.00 in a research report on Monday, December 8th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Lucid Group in a research note on Wednesday, November 19th. Stifel Nicolaus decreased their price target on shares of Lucid Group from $21.00 to $17.00 and set a "hold" rating for the company in a research note on Monday, November 17th. Finally, Robert W. Baird set a $14.00 price objective on Lucid Group in a research note on Tuesday, January 6th. Two equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $18.92.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Cigna Investments Inc. New bought a new position in shares of Lucid Group in the second quarter worth $25,000. Valeo Financial Advisors LLC grew its position in Lucid Group by 9.7% during the second quarter. Valeo Financial Advisors LLC now owns 11,926 shares of the company's stock worth $25,000 after buying an additional 1,055 shares in the last quarter. Tyche Wealth Partners LLC bought a new position in Lucid Group in the 2nd quarter worth about $26,000. Concurrent Investment Advisors LLC bought a new position in Lucid Group in the 2nd quarter worth about $29,000. Finally, Kingsview Wealth Management LLC purchased a new stake in shares of Lucid Group in the 2nd quarter valued at about $30,000. 75.17% of the stock is owned by institutional investors.

Lucid Group Trading Down 7.3%

The stock has a market cap of $3.26 billion, a P/E ratio of -0.94 and a beta of 0.89. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.34 and a current ratio of 1.81. The stock has a 50-day moving average price of $12.70 and a 200-day moving average price of $18.69.

Lucid Group (NASDAQ:LCID - Get Free Report) last posted its quarterly earnings data on Wednesday, November 5th. The company reported ($2.65) earnings per share for the quarter, missing the consensus estimate of ($2.32) by ($0.33). Lucid Group had a negative return on equity of 85.13% and a negative net margin of 224.99%.The company had revenue of $336.58 million during the quarter, compared to the consensus estimate of $378.44 million. During the same quarter last year, the company posted ($2.76) earnings per share. The firm's revenue for the quarter was up 68.3% on a year-over-year basis. On average, equities research analysts expect that Lucid Group, Inc. will post -1.25 EPS for the current year.

About Lucid Group

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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