Lucid Group (NASDAQ:LCID) Stock Price Down 7.7% - What's Next?

Key Points

• Lucid shares fell 7.7% to approximately $7.50 in Friday’s trading, with volume substantially below the stock’s average session volume.
• Investors remain focused on Lucid’s upcoming Aug. 4 earnings report, which is expected to address its cash position, production, demand and execution challenges. The stock has also been pressured by a broader EV-sector selloff and bankruptcy concerns.
• Analyst sentiment is cautious: MarketBeat’s consensus rating is “Reduce”, based on one Buy, six Hold and four Sell ratings, with an average price target of $9.56.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) traded down 7.7% during mid-day trading on Friday . The stock traded as low as $7.48 and last traded at $7.4950. Approximately 3,222,289 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 14,224,956 shares. The stock had previously closed at $8.12.

Key Headlines Impacting Lucid Group

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

• Positive Sentiment: Saudi billionaire Prince Alwaleed’s reported $129.5 million investment and 5% stake previously supported investor optimism about Lucid’s access to capital and strategic backing. However, the company must still demonstrate that this support can translate into stronger operations and vehicle deliveries. Lucid stock surges Tuesday following Prince Alwaleed's 5% stake disclosure
• Neutral Sentiment: Lucid’s next earnings update on Aug. 4 is likely to be the main near-term catalyst. Analysts and investors are expected to weigh the company’s substantial cash position against continued concerns about production, demand and execution. Should You Buy Lucid Stock Before Aug. 4?
• Negative Sentiment: Lucid shares have fallen roughly 96% over five years, highlighting the severity of the company’s value destruction. Reports that bankruptcy rumors are increasingly influencing trading add to concerns about Lucid’s ability to remain viable in a weakening U.S. EV market. Lucid Shares Down 96% In Five Years
• Negative Sentiment: A broad selloff in electric-vehicle stocks is weighing on Lucid, with the company declining alongside Rivian despite Rivian’s quarterly beat and higher guidance. The reaction suggests investors are reducing exposure to the sector amid concerns about EV demand, profitability and execution. Rivian Sinks 8% Despite Q2 Beat and Raised Guidance; Lucid Falls 6%
• Negative Sentiment: Historical analysis that Tesla tends to suffer outsized declines during market shocks reinforces the risk-off backdrop for high-volatility EV manufacturers such as Lucid, although it does not represent a company-specific development. Tesla Stock Falls More Than Twice as Far as the Market in a Shock

Analyst Ratings Changes

LCID has been the subject of a number of recent research reports. Cantor Fitzgerald reaffirmed a "neutral" rating and set a $14.00 price objective on shares of Lucid Group in a research report on Monday, May 4th. Evercore set a $6.00 target price on Lucid Group in a report on Monday, May 11th. Robert W. Baird set a $6.00 price target on Lucid Group in a research note on Wednesday, May 6th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Lucid Group in a report on Wednesday, June 24th. Finally, Morgan Stanley set a $5.00 price objective on shares of Lucid Group in a research report on Wednesday, May 6th. One analyst has rated the stock with a Buy rating, six have given a Hold rating and four have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Reduce" and an average target price of $9.56.

Lucid Group Price Performance

The company has a 50-day simple moving average of $6.01 and a 200-day simple moving average of $8.01. The stock has a market cap of $2.96 billion, a PE ratio of -0.58 and a beta of 0.83. The company has a debt-to-equity ratio of 3.00, a current ratio of 1.02 and a quick ratio of 0.48.

Hedge Funds Weigh In On Lucid Group

A number of large investors have recently made changes to their positions in the stock. EverSource Wealth Advisors LLC boosted its holdings in Lucid Group by 1,574.7% during the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company's stock worth $28,000 after buying an additional 2,740 shares in the last quarter. Leonteq Securities AG acquired a new stake in shares of Lucid Group during the 4th quarter valued at approximately $67,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Lucid Group during the 4th quarter worth approximately $77,000. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Lucid Group during the 4th quarter worth approximately $86,000. Finally, HITE Hedge Asset Management LLC acquired a new stake in shares of Lucid Group in the 3rd quarter worth approximately $212,000. Hedge funds and other institutional investors 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.

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