Lucid Group (NASDAQ:LCID) Stock Price Up 4.8% - Should You Buy?

Key Points

• Lucid Group shares rose 4.8% in Friday trading, reaching as high as $6.37 on volume above the daily average, but the stock remains well below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed to bearish. Recent coverage includes one Buy, several Hold ratings, and three Sell ratings, with a consensus rating of “Reduce” and an average price target of $10.50.
• Latest earnings disappointed. Lucid reported a larger-than-expected quarterly loss and revenue below estimates, though sales still grew 20.2% year over year. The company continues to post heavy losses and negative margins.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shot up 4.8% during trading on Friday . The company traded as high as $6.37 and last traded at $6.34. 12,891,153 shares traded hands during mid-day trading, an increase of 17% from the average session volume of 11,042,897 shares. The stock had previously closed at $6.05.

Wall Street Analysts Forecast Growth

LCID has been the topic of a number of recent research reports. Bank of America started coverage on shares of Lucid Group in a research note on Wednesday, March 4th. They set an "underperform" rating and a $10.00 price target on the stock. Zacks Research raised shares of Lucid Group from a "strong sell" rating to a "hold" rating in a report on Thursday, March 5th. TD Cowen lowered their target price on shares of Lucid Group from $10.00 to $7.00 and set a "hold" rating on the stock in a research note on Wednesday. Citigroup started coverage on shares of Lucid Group in a research report on Wednesday, March 18th. They issued a "buy" rating and a $17.00 price target for the company. Finally, Morgan Stanley set a $5.00 price objective on Lucid Group in a report on Wednesday. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $10.50.

Lucid Group Stock Performance

The company has a quick ratio of 0.83, a current ratio of 1.02 and a debt-to-equity ratio of 3.00. The stock has a market capitalization of $2.08 billion, a price-to-earnings ratio of -0.48 and a beta of 0.88. The stock's 50-day simple moving average is $8.85 and its 200 day simple moving average is $11.37.

Lucid Group (NASDAQ:LCID - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported ($3.46) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.53) by ($0.93). The firm had revenue of $282.47 million during the quarter, compared to the consensus estimate of $358.46 million. Lucid Group had a negative net margin of 248.09% and a negative return on equity of 304.01%. The business's revenue was up 20.2% on a year-over-year basis. During the same quarter last year, the firm posted ($0.20) EPS. Analysts expect that Lucid Group, Inc. will post -10.03 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lucid Group

A number of institutional investors and hedge funds have recently bought and sold shares of LCID. Brown Advisory Inc. increased its stake in shares of Lucid Group by 47.5% in the second quarter. Brown Advisory Inc. now owns 15,530 shares of the company's stock valued at $33,000 after buying an additional 5,000 shares in the last quarter. Jump Financial LLC acquired a new position in Lucid Group during the 2nd quarter worth about $41,000. Worldquant Millennium Advisors LLC acquired a new position in Lucid Group during the 2nd quarter worth about $59,000. Leonteq Securities AG bought a new stake in Lucid Group during the 4th quarter worth about $67,000. Finally, Caitong International Asset Management Co. Ltd acquired a new stake in Lucid Group in the 4th quarter valued at about $77,000. 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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