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

Key Points

• Lucid Group shares fell 7% in Tuesday trading, dipping as low as $6.38 before last trading around $6.19. Volume was below average, with about 13.1 million shares changing hands.
• The company is facing added legal pressure from a shareholder class-action lawsuit alleging misleading statements about production, deliveries, and a supplier-quality issue that affected Gravity deliveries. Several law firms have also issued investor alerts and deadline reminders tied to the case.
• Fundamentals remain weak: Lucid recently posted a larger-than-expected quarterly loss and revenue below estimates, while analysts overall rate the stock “Reduce” with a consensus price target of $9.67. The company also completed its leadership transition, naming Silvio Napoli as permanent CEO.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report)'s share price dropped 7% during trading on Tuesday . The company traded as low as $6.38 and last traded at $6.1850. Approximately 13,116,957 shares changed hands during trading, a decline of 15% from the average daily volume of 15,371,072 shares. The stock had previously closed at $6.65.

Lucid Group News Roundup

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

• Positive Sentiment: Lucid completed its leadership transition and appointed Silvio Napoli as permanent CEO, which may help provide more stable execution and strategic direction going forward. Silvio Napoli Assumes Role as CEO of Lucid Following Completion of Leadership Transition
• Neutral Sentiment: Several law firms issued investor alerts and deadline reminders tied to a recently filed class-action lawsuit, indicating that the stock remains under close legal scrutiny. Berger Montague PC Investigating Claims on Behalf of Lucid Group, Inc. NASDAQ: LCID Investors After Class Action Filing
• Neutral Sentiment: Pomerantz and other firms also announced investigations on behalf of Lucid investors, keeping attention on allegations rather than operating fundamentals. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Lucid Group, Inc. - LCID
• Negative Sentiment: A shareholder class action alleges Lucid made misleading statements about production, delivery capabilities, and a supplier-quality issue that disrupted Gravity deliveries, which could weigh on sentiment if the claims gain traction. LCID INVESTOR ALERT: Class Action Lawsuit Filed on Behalf of Lucid Group, Inc. Investors – Holzer & Holzer, LLC Encourages Investors With Losses to Contact the Firm

Analyst Ratings Changes

LCID has been the subject of a number of research reports. Robert W. Baird set a $6.00 target price on Lucid Group in a report on Wednesday, May 6th. Royal Bank Of Canada decreased their target price on Lucid Group from $10.00 to $8.00 and set a "sector perform" rating for the company in a report on Monday, April 13th. Bank of America initiated coverage on Lucid Group in a report on Wednesday, March 4th. They set an "underperform" rating and a $10.00 target price for the company. Evercore set a $6.00 target price on Lucid Group in a report on Monday, May 11th. Finally, TD Cowen decreased their price target on Lucid Group from $10.00 to $7.00 and set a "hold" rating for the company in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Lucid Group presently has an average rating of "Reduce" and a consensus price target of $9.67.

Lucid Group Price Performance

The company has a market capitalization of $2.41 billion, a price-to-earnings ratio of -0.47 and a beta of 0.89. The stock has a fifty day simple moving average of $7.47 and a 200-day simple moving average of $9.95. The company has a debt-to-equity ratio of 3.00, a current ratio of 1.02 and a quick ratio of 0.48.

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

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the business. Tudor Investment Corp ET AL acquired a new position in shares of Lucid Group during the 3rd quarter worth approximately $1,361,978,000. Uber Technologies Inc acquired a new position in shares of Lucid Group during the 3rd quarter worth approximately $326,283,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake 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 worth $25,973,000 after buying an additional 3,465,542 shares during the period. Vanguard Group Inc. raised its stake in shares of Lucid Group by 6.2% during the 4th quarter. Vanguard Group Inc. now owns 12,061,286 shares of the company's stock worth $127,488,000 after buying an additional 701,826 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake 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 worth $13,166,000 after buying an additional 2,874,603 shares during the period. 75.17% of the stock is 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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