Lucid Group (NASDAQ:LCID) Stock Price Down 4.4% - What's Next?

Key Points

• Lucid Group shares fell 4.4% on Tuesday, trading as low as $4.93 and ending near $5.02, below the prior close of $5.25. Trading volume was also lighter than usual.
• Legal risk is rising after a class action lawsuit was filed against Lucid and certain officers alleging federal securities law violations, with additional plaintiff-firm notices highlighting a July 28 lead-plaintiff deadline.
• Analysts remain cautious on the stock, with recent price target cuts from several firms and an overall average rating of “Reduce.” Lucid also reported a wider-than-expected quarterly loss and weaker-than-expected revenue in its latest earnings release.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) dropped 4.4% on Tuesday . The stock traded as low as $4.93 and last traded at $5.02. Approximately 10,363,967 shares traded hands during mid-day trading, a decline of 14% from the average daily volume of 11,990,626 shares. The stock had previously closed at $5.25.

Key Stories Impacting Lucid Group

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

• Positive Sentiment: LCID was mentioned in a broader market move higher after news of a Trump administration peace deal that could reopen the Strait of Hormuz, a development that lifted several stocks. General Motors, Lucid, and Goodyear Stocks Trade Up, What You Need To Know
• Neutral Sentiment: One article speculated on whether Lucid stock could double this year, citing improving vehicle deliveries, but it was opinion-based and did not include a fresh company catalyst. Prediction: Will Lucid Stock Double This Year?
• Negative Sentiment: A class action lawsuit has been filed against Lucid Group and certain officers, alleging violations of federal securities laws during the specified class period, adding a meaningful legal and reputational headwind for the stock. Pomerantz Law Firm Announces the Filing of a Class Action Against Lucid Group, Inc. and Certain Officers – LCID
• Negative Sentiment: Several follow-up notices from plaintiff firms are reminding investors of the July 28 deadline to seek lead-plaintiff status, reinforcing the ongoing litigation risk around Lucid. LCID Investors Have Opportunity to Lead Lucid Group, Inc. Securities Fraud Lawsuit

Analysts Set New Price Targets

LCID has been the subject of several research reports. Royal Bank Of Canada reduced their target price on shares of Lucid Group from $10.00 to $8.00 and set a "sector perform" rating for the company in a research note on Monday, April 13th. Robert W. Baird set a $6.00 target price on shares of Lucid Group in a research note on Wednesday, May 6th. Morgan Stanley set a $5.00 target price on shares of Lucid Group in a research note on Wednesday, May 6th. TD Cowen reduced their target price on shares of Lucid Group from $10.00 to $7.00 and set a "hold" rating for the company in a research note on Wednesday, May 6th. Finally, Bank of America initiated coverage on shares of Lucid Group in a research note on Wednesday, March 4th. They issued an "underperform" rating and a $10.00 target price for the company. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average price target of $9.67.

Lucid Group Price Performance

The company has a quick ratio of 0.48, a current ratio of 1.02 and a debt-to-equity ratio of 3.00. The stock has a market cap of $1.96 billion, a price-to-earnings ratio of -0.38 and a beta of 0.89. The company's 50-day moving average is $6.56 and its 200-day moving average is $9.38.

Lucid Group (NASDAQ:LCID - Get Free Report) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($2.82) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.53) by ($0.29). Lucid Group had a negative return on equity of 304.01% and a negative net margin of 248.09%.The business had revenue of $282.47 million during the quarter, compared to analyst estimates of $358.46 million. During the same period last year, the company earned ($0.20) EPS. The business's revenue for the quarter was up 20.2% on a year-over-year basis. Equities research analysts expect that Lucid Group, Inc. will post -10.75 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its holdings in shares of Lucid Group by 9.5% during the first quarter. Royal Bank of Canada now owns 110,716 shares of the company's stock worth $267,000 after buying an additional 9,578 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Lucid Group by 89.9% during the first quarter. AQR Capital Management LLC now owns 537,801 shares of the company's stock worth $1,226,000 after buying an additional 254,551 shares in the last quarter. NewEdge Advisors LLC increased its holdings in shares of Lucid Group by 103.2% during the first quarter. NewEdge Advisors LLC now owns 37,987 shares of the company's stock worth $92,000 after buying an additional 19,294 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Lucid Group by 112.0% during the first quarter. Goldman Sachs Group Inc. now owns 5,440,620 shares of the company's stock worth $13,166,000 after buying an additional 2,874,603 shares in the last quarter. Finally, Empowered Funds LLC increased its holdings in shares of Lucid Group by 11.3% during the first quarter. Empowered Funds LLC now owns 110,844 shares of the company's stock worth $268,000 after buying an additional 11,252 shares in the last quarter. Institutional investors and hedge funds own 75.17% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.