Lucid Group (NASDAQ:LCID) Stock Price Down 2.3% After Analyst Downgrade

Key Points

• Shares fell 2.3% after TD Cowen cut its price target from $10 to $7 and put a hold rating on LCID, with intraday volume up ~44% as the stock traded near $6.05.
• Q1 results disappointed: Lucid reported EPS of -$3.46 (vs. -$2.53 expected) and revenue of $282.5M (vs. $358M expected), then suspended full-year production guidance amid supplier delays, inventory write-downs and an incoming CEO-led business review.
• Liquidity improved but margins strained: Management secured roughly $1.05 billion of financing (including $550M from a Saudi PIF affiliate and $200M from Uber), and production/revenue rose year-over-year, yet losses widened and analysts have lowered targets and ratings.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report)'s stock price fell 2.3% during mid-day trading on Thursday after TD Cowen lowered their price target on the stock from $10.00 to $7.00. TD Cowen currently has a hold rating on the stock. Lucid Group traded as low as $5.94 and last traded at $6.05. 15,834,820 shares changed hands during trading, an increase of 44% from the average session volume of 11,019,474 shares. The stock had previously closed at $6.19.

Other equities analysts have also issued research reports about the company. Benchmark lowered Lucid Group from a "buy" rating to a "hold" rating in a research report on Wednesday. Bank of America began coverage on Lucid Group in a research report on Wednesday, March 4th. They issued an "underperform" rating and a $10.00 price target for the company. Weiss Ratings reiterated a "sell (e+)" rating on shares of Lucid Group in a research report on Friday, March 27th. Morgan Stanley set a $5.00 target price on Lucid Group in a research note on Wednesday. Finally, Robert W. Baird set a $6.00 target price on Lucid Group in a research note on Wednesday. One analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Lucid Group presently has an average rating of "Reduce" and a consensus target price of $10.50.

Key Headlines Impacting Lucid Group

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

• Positive Sentiment: Large capital raise bolsters liquidity: Lucid announced roughly $1.05 billion of financing (including $550M convertible preferred from an affiliate of Saudi PIF, $300M registered common offering and $200M equity from Uber), which management says improves runway and reduces near-term financing risk. Lucid press release
• Positive Sentiment: Production and revenue growth versus prior year: Lucid produced ~5,500 vehicles (up 149% y/y), delivered ~3,093 in Q1 and reported revenue up about 20% year-over-year — signs the business is scaling even as margins worsen. Q1 results
• Neutral Sentiment: Analyst attention is heightened and views are diverging — some firms cut targets quickly while others still see upside on longer-term execution; expect continued headline-driven swings as coverage updates roll in. Analyst roundup
• Negative Sentiment: Q1 misses and wider-than-expected loss: Lucid reported EPS of -$3.46 vs. consensus around -$2.53 and revenue of ~$282.5M vs. ~$358M expected — a significant earnings and top-line miss that directly pressured the stock. Reuters: revenue miss
• Negative Sentiment: Guidance suspended and production uncertainty: Management paused full-year production guidance and said it no longer has a clear build target for the year while an incoming CEO conducts a business review — this raises execution risk and short-term uncertainty. TechCrunch: production guidance
• Negative Sentiment: Inventory, supplier problems and write-downs: The company flagged bloated inventory, supplier delays that hit Gravity SUV deliveries in February and inventory write-downs that widened losses and pressured margins. Electrek: inventory/production
• Negative Sentiment: Analyst downgrades and lower targets: Benchmark cut LCID to Hold; TD Cowen trimmed its target to $7; Morgan Stanley cut its target in half to $5 — these moves increase selling pressure and lower near-term analyst support. Benchmark downgrade TD Cowen PT cut
• Negative Sentiment: Investor litigation alert: Pomerantz has launched an investigation into potential claims on behalf of Lucid investors, adding legal risk and potential distraction. Pomerantz investor alert

Institutional Investors Weigh In On Lucid Group

Several institutional investors have recently made changes to their positions in LCID. Tudor Investment Corp ET AL acquired a new stake in shares of Lucid Group during the 3rd quarter valued at about $1,361,978,000. Uber Technologies Inc acquired a new stake in shares of Lucid Group during the 3rd quarter valued at about $326,283,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Lucid Group by 39.2% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,309,476 shares of the company's stock valued at $25,973,000 after buying an additional 3,465,542 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Lucid Group by 112.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 5,440,620 shares of the company's stock valued at $13,166,000 after buying an additional 2,874,603 shares during the last quarter. Finally, BNP Paribas Financial Markets lifted its holdings in shares of Lucid Group by 93.5% during the 2nd quarter. BNP Paribas Financial Markets now owns 4,485,715 shares of the company's stock valued at $9,465,000 after buying an additional 2,167,882 shares during the last quarter. 75.17% of the stock is currently owned by institutional investors and hedge funds.

Lucid Group Trading Down 2.3%

The firm has a market capitalization of $1.98 billion, a price-to-earnings ratio of -0.46 and a beta of 0.88. The company has a current ratio of 1.25, a quick ratio of 0.83 and a debt-to-equity ratio of 3.00. The company has a fifty day moving average price of $8.93 and a 200-day moving average price of $11.46.

Lucid Group (NASDAQ:LCID - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported ($3.46) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.53) by ($0.93). The firm had revenue of $282.47 million for the quarter, compared to analyst estimates of $358.46 million. Lucid Group had a negative net margin of 248.09% and a negative return on equity of 211.74%. The firm's quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.20) earnings per share. On average, equities research analysts predict that Lucid Group, Inc. will post -10.03 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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