Lucid Group (NASDAQ:LCID) Stock Price Down 7% - Here's What Happened

Key Points

• Shares of Lucid Group fell about 7% intraday to $10.29, with roughly 7.98 million shares traded (about 3% below the average daily volume) after a prior close of $11.07.
• Several brokers have cut ratings and targets—including Morgan Stanley's downgrade to underweight with a $10 target—leaving a MarketBeat consensus rating of "Reduce" and a $18.92 consensus price target.
• Lucid reported a quarterly loss (EPS of -$2.65), missed revenue and EPS estimates, has a deeply negative net margin and ROE despite 68% year-over-year revenue growth, and carries a market cap of about $3.34 billion.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) were down 7% during mid-day trading on Monday . The stock traded as low as $10.25 and last traded at $10.29. Approximately 7,977,313 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 8,226,274 shares. The stock had previously closed at $11.07.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on LCID. Royal Bank Of Canada lowered their target price on Lucid Group from $20.00 to $14.00 and set a "sector perform" rating on the stock in a research note on Wednesday, January 14th. Stifel Nicolaus decreased their price target on Lucid Group from $21.00 to $17.00 and set a "hold" rating for the company in a report on Monday, November 17th. Cantor Fitzgerald reiterated an "overweight" rating on shares of Lucid Group in a research report on Wednesday, November 19th. Zacks Research cut shares of Lucid Group from a "hold" rating to a "strong sell" rating in a research note on Thursday, January 22nd. Finally, Morgan Stanley cut shares of Lucid Group from a "buy" rating to an "underweight" rating and reduced their target price 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 given a Hold rating and five have given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $18.92.

Lucid Group Price Performance

The stock has a fifty day moving average of $11.72 and a two-hundred day moving average of $17.77. The stock has a market cap of $3.34 billion, a price-to-earnings ratio of -0.96 and a beta of 1.16. 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 announced 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 firm's revenue for the quarter was up 68.3% on a year-over-year basis. During the same quarter last year, the business earned ($2.76) EPS. On average, equities research analysts anticipate that Lucid Group, Inc. will post -1.25 earnings per share for the current year.

Institutional Investors Weigh In On Lucid Group

Large investors have recently added to or reduced their stakes in the business. Valeo Financial Advisors LLC grew its holdings in Lucid Group by 9.7% during the 2nd quarter. Valeo Financial Advisors LLC now owns 11,926 shares of the company's stock valued at $25,000 after buying an additional 1,055 shares during the last quarter. Tyche Wealth Partners LLC purchased a new stake in shares of Lucid Group in the second quarter valued at $26,000. Concurrent Investment Advisors LLC acquired a new stake in shares of Lucid Group during the second quarter valued at $29,000. Kingsview Wealth Management LLC acquired a new stake in shares of Lucid Group during the second quarter valued at $30,000. Finally, Cypress Wealth Services LLC purchased a new stake in Lucid Group during the 2nd quarter worth about $32,000. 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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