Lucid Group (NASDAQ:LCID) Trading 1.5% Higher - Time to Buy?

Key Points

• Lucid Group shares rose 1.5% on Monday, briefly reaching $6.95 as trading volume came in above average. The move came even as the stock remained well below its 50-day and 200-day moving averages.
• Leadership is now more settled after Lucid completed its transition and named Silvio Napoli as permanent CEO. That may help investor confidence, but the company is still dealing with a shareholder class action tied to alleged misleading statements and supplier quality issues.
• Fundamentals and analyst sentiment remain weak after Lucid reported a wider-than-expected quarterly loss and revenue below estimates, though sales still rose year over year. Analysts mostly rate the stock Hold or Sell, with an average target price of $9.67.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shot up 1.5% during trading on Monday . The company traded as high as $6.95 and last traded at $6.65. 13,080,971 shares changed hands during mid-day trading, an increase of 12% from the average session volume of 11,644,558 shares. The stock had previously closed at $6.55.

Key Stories Impacting Lucid Group

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

• Positive Sentiment: Lucid completed its leadership transition and named Silvio Napoli as permanent CEO, which could reassure investors looking for clearer execution and stability. Silvio Napoli Assumes Role as CEO of Lucid Following Completion of Leadership Transition
• Neutral Sentiment: Multiple law firms issued investor alerts after a shareholder class action was filed against Lucid over alleged misleading statements and undisclosed supplier quality issues that may have disrupted Lucid Gravity deliveries. These notices add legal overhang, but they are largely repetitive updates around the same lawsuit. LCID INVESTOR ALERT: Class Action Lawsuit Filed on Behalf of Lucid Group, Inc. Investors
• Neutral Sentiment: Robbins LLP and Bernstein Liebhard also reminded investors about the same class action, reinforcing concerns about possible damages and litigation risk for Lucid. LCID Stockholder Alert: Shareholder Rights Law Firm Robbins LLP Reminds Investors of the Class Action Lawsuit Against Lucid Group, Inc.
• Negative Sentiment: The class action allegations suggest Lucid may have overstated manufacturing and delivery capabilities while a supplier issue hurt Gravity deliveries, which could pressure sentiment if investors expect operational and financial weakness. LUCID GROUP, INC. (LCID) INVESTOR ALERT

Analysts Set New Price Targets

A number of analysts have recently issued reports on LCID shares. TD Cowen dropped their price objective on shares of Lucid Group from $10.00 to $7.00 and set a "hold" rating for the company in a report on Wednesday, May 6th. Zacks Research raised Lucid Group from a "strong sell" rating to a "hold" rating in a research note on Thursday, March 5th. Evercore set a $6.00 price target on Lucid Group in a research report on Monday, May 11th. Citigroup reaffirmed a "buy" rating and set a $14.00 price target (down from $17.00) on shares of Lucid Group in a research note on Friday, May 15th. Finally, Morgan Stanley set a $5.00 price objective on Lucid Group in a research report on Wednesday, May 6th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $9.67.

Lucid Group Stock Up 1.5%

The stock has a market capitalization of $2.60 billion, a P/E ratio of -0.50 and a beta of 0.89. The stock has a 50 day moving average price of $7.55 and a 200-day moving average price of $10.02. 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 issued its earnings results on Tuesday, May 5th. The company reported ($2.82) earnings per share for the quarter, missing the consensus estimate of ($2.53) by ($0.29). The company had revenue of $282.47 million for the quarter, compared to analysts' expectations of $358.46 million. Lucid Group had a negative net margin of 248.09% and a negative return on equity of 304.01%. The company's revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.20) earnings per share. As a group, research analysts expect that Lucid Group, Inc. will post -10.75 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Tudor Investment Corp ET AL bought a new position in Lucid Group in the third quarter worth $1,361,978,000. SG Americas Securities LLC boosted its holdings in shares of Lucid Group by 65.9% during the 4th quarter. SG Americas Securities LLC now owns 181,153 shares of the company's stock valued at $1,915,000 after buying an additional 71,966 shares in the last quarter. Vanguard Group Inc. boosted its holdings 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 valued at $127,488,000 after buying an additional 701,826 shares in the last quarter. Calamos Advisors LLC purchased a new stake in shares of Lucid Group in the 4th quarter worth about $1,586,000. Finally, R Squared Ltd bought a new position in shares of Lucid Group in the 4th quarter worth about $248,000. Institutional investors 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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