Lucid Group (NASDAQ:LCID) Shares Gap Down - Should You Sell?

Key Points

• Lucid Group shares gapped down at the open, falling from a prior close of $7.36 to $7.07 before later trading around $7.57 on heavy volume.
• Analyst sentiment remains weak overall: the stock has one Buy, seven Hold, and three Sell ratings, with MarketBeat showing an average rating of “Reduce” and a consensus price target of $9.56.
• Lucid’s financial profile remains challenged, with a $2.82 billion market cap, negative earnings, and leverage/liquidity metrics that include a 3.00 debt-to-equity ratio and a 0.48 quick ratio.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $7.36, but opened at $7.07. Lucid Group shares last traded at $7.5660, with a volume of 4,579,747 shares changing hands.

Wall Street Analyst Weigh In

LCID has been the subject of several analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Lucid Group in a research report on Wednesday, June 24th. Benchmark downgraded Lucid Group from a "buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Citigroup reaffirmed a "buy" rating and issued a $14.00 price target (down from $17.00) on shares of Lucid Group in a research note on Friday, May 15th. Cantor Fitzgerald reiterated a "neutral" rating and set a $14.00 price target on shares of Lucid Group in a report on Monday, May 4th. Finally, Royal Bank Of Canada reiterated a "sector perform" rating and set a $7.00 price target (down from $8.00) on shares of Lucid Group in a report on Monday, July 13th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $9.56.

Lucid Group Price Performance

The stock has a market capitalization of $2.82 billion, a price-to-earnings ratio of -0.55 and a beta of 0.83. The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.48 and a current ratio of 1.02. The company has a 50 day moving average of $5.79 and a 200 day moving average of $8.26.

Hedge Funds Weigh In On Lucid Group

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC raised its holdings in Lucid Group by 1,574.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company's stock valued at $28,000 after acquiring an additional 2,740 shares in the last quarter. Leonteq Securities AG acquired a new position in Lucid Group during the 4th quarter worth approximately $67,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Lucid Group in the 4th quarter valued at approximately $77,000. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Lucid Group in the 4th quarter valued at approximately $86,000. Finally, HITE Hedge Asset Management LLC acquired a new stake in shares of Lucid Group in the 3rd quarter valued at $212,000. 75.17% of the stock is owned by institutional investors and hedge funds.

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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