Lucid Group (NASDAQ:LCID) Stock Price Down 7.7% - Should You Sell?

Key Points

• Lucid shares fell 7.7% intraday to about $12.58 on Monday, trading roughly 9.4 million shares (≈16% below average) after a prior close of $13.63.
• The company missed estimates with quarterly EPS of -$2.65 versus -$2.32 expected and revenue of $336.6M vs $378.4M expected, reporting a negative net margin (224.99%) and negative ROE despite 68.3% YoY revenue growth.
• Analyst sentiment is mixed: MarketBeat shows an average rating of "Reduce" and an average target price of $24.04, with recent price targets ranging roughly from $17 to $30 across brokers.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares dropped 7.7% during mid-day trading on Monday . The stock traded as low as $12.43 and last traded at $12.58. Approximately 9,426,143 shares changed hands during mid-day trading, a decline of 16% from the average daily volume of 11,212,181 shares. The stock had previously closed at $13.63.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on LCID shares. Morgan Stanley increased their price target on Lucid Group to $30.00 and gave the stock an "equal weight" rating in a research note on Tuesday, September 2nd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Lucid Group in a report on Wednesday, November 19th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Lucid Group in a research report on Tuesday, November 25th. Finally, Stifel Nicolaus lowered their price target on shares of Lucid Group from $21.00 to $17.00 and set a "hold" rating on the stock in a research report on Monday, November 17th. Two investment analysts have rated the stock with a Buy rating, six have given a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $24.04.

Lucid Group Trading Down 7.7%

The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.34 and a current ratio of 1.81. The firm has a market cap of $4.08 billion, a P/E ratio of -1.17 and a beta of 0.87. The firm has a 50 day simple moving average of $18.62 and a 200 day simple moving average of $21.45.

Lucid Group (NASDAQ:LCID - Get Free Report) last announced its quarterly earnings results on Wednesday, November 5th. The company reported ($2.65) earnings per share for the quarter, missing the consensus estimate of ($2.32) by ($0.33). The company had revenue of $336.58 million for the quarter, compared to the consensus estimate 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% on a year-over-year basis. During the same quarter in the prior year, the company earned ($2.76) earnings per share. On average, equities research analysts predict that Lucid Group, Inc. will post -1.25 EPS for the current fiscal year.

Institutional Investors Weigh In On Lucid Group

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Swiss National Bank grew its holdings in shares of Lucid Group by 26.9% during the first quarter. Swiss National Bank now owns 2,334,000 shares of the company's stock worth $5,648,000 after purchasing an additional 495,000 shares in the last quarter. Vanguard Group Inc. lifted its position in Lucid Group by 0.6% during the first quarter. Vanguard Group Inc. now owns 110,933,835 shares of the company's stock valued at $268,460,000 after purchasing an additional 615,108 shares during the last quarter. Rockefeller Capital Management L.P. grew its stake in Lucid Group by 11.1% in the 2nd quarter. Rockefeller Capital Management L.P. now owns 340,533 shares of the company's stock worth $719,000 after buying an additional 34,116 shares in the last quarter. Highbridge Capital Management LLC bought a new position in shares of Lucid Group in the 2nd quarter worth $3,245,000. Finally, HBK Investments L P bought a new position in shares of Lucid Group in the 2nd quarter worth $2,658,000. Hedge funds and other institutional investors own 75.17% of the company's stock.

Lucid Group Company Profile

Lucid Group, Inc a technology company, designs, engineers, manufactures, and sells electric vehicles (EV), EV powertrains, and battery systems. It also designs and develops proprietary software in-house for Lucid vehicles. The company sells vehicles directly to consumers through its retail sales network and direct online sales, including Lucid Financial Services.

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