Lucid Group (NASDAQ:LCID) Stock Price Down 8.2% - What's Next?

Key Points

• Shares fell 8.2% to about $9.53 on Thursday, with roughly 8.82 million shares traded (about 7% above average), after closing at $10.38 the prior session.
• Analyst sentiment has soured: Morgan Stanley downgraded Lucid to "underweight" and cut its price target from $30 to $10, and MarketBeat shows a consensus rating of "Reduce" with an average target near $18.92.
• Underlying fundamentals remain weak: Lucid missed recent EPS and revenue estimates (EPS of −$2.65 vs. −$2.32 expected; revenue $336.6M vs. $378.4M expected), posts large negative margins/ROE, and analysts project about −$1.25 EPS for the year.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) dropped 8.2% on Thursday . The company traded as low as $9.52 and last traded at $9.53. Approximately 8,821,031 shares were traded during mid-day trading, an increase of 7% from the average daily volume of 8,233,057 shares. The stock had previously closed at $10.38.

Analyst Upgrades and Downgrades

Several brokerages have weighed in on LCID. Morgan Stanley downgraded Lucid Group from a "buy" rating to an "underweight" rating and cut their price target for the stock from $30.00 to $10.00 in a research report on Monday, December 8th. Zacks Research lowered Lucid Group from a "hold" rating to a "strong sell" rating in a research report on Thursday, January 22nd. Robert W. Baird set a $14.00 target price on shares of Lucid Group in a report on Tuesday, January 6th. Weiss Ratings reissued a "sell (e+)" rating on shares of Lucid Group in a report on Monday, December 29th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Lucid Group in a report on Wednesday, November 19th. Two research analysts have rated the stock with a Buy rating, five have issued a Hold rating and five have given a Sell rating to the company. According to MarketBeat.com, Lucid Group currently has an average rating of "Reduce" and an average price target of $18.92.

Lucid Group Stock Down 8.2%

The company has a debt-to-equity ratio of 1.19, a current ratio of 1.81 and a quick ratio of 1.34. The business's 50 day moving average price is $11.56 and its 200 day moving average price is $17.51. The firm has a market cap of $3.09 billion, a PE ratio of -0.89 and a beta of 1.16.

Lucid Group (NASDAQ:LCID - Get Free Report) last posted its quarterly earnings data on Wednesday, November 5th. The company reported ($2.65) earnings per share (EPS) for the quarter, missing the consensus estimate of ($2.32) by ($0.33). The firm had revenue of $336.58 million during the quarter, compared to analyst estimates of $378.44 million. Lucid Group had a negative return on equity of 85.13% and a negative net margin of 224.99%.The company's quarterly revenue was up 68.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($2.76) earnings per share. On average, equities research analysts expect that Lucid Group, Inc. will post -1.25 earnings per share for the current year.

Hedge Funds Weigh In On Lucid Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LCID. Valeo Financial Advisors LLC raised its stake in Lucid Group by 9.7% during the second quarter. Valeo Financial Advisors LLC now owns 11,926 shares of the company's stock worth $25,000 after purchasing an additional 1,055 shares during the period. Tyche Wealth Partners LLC purchased a new stake in shares of Lucid Group during the 2nd quarter valued at approximately $26,000. Concurrent Investment Advisors LLC acquired a new position in Lucid Group in the second quarter valued at approximately $29,000. Kingsview Wealth Management LLC purchased a new position in Lucid Group in the second quarter worth approximately $30,000. Finally, Cypress Wealth Services LLC purchased a new position in Lucid Group in the second quarter worth approximately $32,000. Institutional investors and hedge funds own 75.17% of the company's stock.

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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