Lucid Group (NASDAQ:LCID) Stock Price Down 3% - Here's Why

Key Points

• Lucid shares fell about 3% to $10.57 on Wednesday (intraday low $10.46), with trading volume slightly below the session average and the stock well under its 50- and 200-day moving averages ($14.16 and $19.50).
• Analyst sentiment has weakened: Morgan Stanley cut Lucid from "buy" to "underweight" and lowered its target to $10, Stifel trimmed its target to $17, and the consensus rating is "Reduce" with an average target of $21.54.
• Fundamentals disappointed last quarter — EPS of ($2.65) missed the ($2.32) estimate and revenue was $336.6M versus $378.4M expected, accompanied by a deeply negative net margin (224.99%) and negative ROE.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares traded down 3% on Wednesday . The company traded as low as $10.46 and last traded at $10.57. 10,161,724 shares changed hands during mid-day trading, a decline of 7% from the average session volume of 10,882,803 shares. The stock had previously closed at $10.90.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on LCID shares. Stifel Nicolaus lowered their price objective on shares of Lucid Group from $21.00 to $17.00 and set a "hold" rating for the company in a research report on Monday, November 17th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Lucid Group in a research note on Wednesday, November 19th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Lucid Group in a research report on Monday. Finally, Morgan Stanley cut shares of Lucid Group from a "buy" rating to an "underweight" rating and decreased their price target for the stock from $30.00 to $10.00 in a research note on Monday, December 8th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, Lucid Group presently has a consensus rating of "Reduce" and an average target price of $21.54.

Lucid Group Stock Performance

The stock has a market capitalization of $3.43 billion, a P/E ratio of -0.99 and a beta of 0.86. The stock has a 50 day simple moving average of $14.16 and a two-hundred day simple moving average of $19.50. The company has a quick ratio of 1.34, a current ratio of 1.81 and a debt-to-equity ratio of 1.19.

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

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of LCID. Tudor Investment Corp ET AL acquired a new stake in Lucid Group in the 3rd quarter valued at about $1,361,978,000. IFP Advisors Inc increased its position in Lucid Group by 315.0% during the third quarter. IFP Advisors Inc now owns 12,197 shares of the company's stock worth $290,000 after buying an additional 9,258 shares during the last quarter. Dark Forest Capital Management LP bought a new stake in Lucid Group in the third quarter valued at approximately $1,229,000. Uber Technologies Inc acquired a new stake in shares of Lucid Group in the third quarter valued at approximately $326,283,000. Finally, Paloma Partners Management Co bought a new position in shares of Lucid Group during the 3rd quarter worth approximately $1,368,000. 75.17% of the stock is currently owned by institutional investors and hedge funds.

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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