Lucid Group (NASDAQ:LCID) Trading Down 3.7% - What's Next?

Key Points

• Lucid Group shares fell 3.7% on Monday, trading as low as $5.07 as volume came in below average. The stock closed at $5.16 after finishing the prior session at $5.36.
• Investor sentiment remains pressured by another major workforce reduction and management shake-up, including the departure of COO Marc Winterhoff. Lucid said the cuts should generate about $158 million in annualized savings, but they also point to softer demand and slower production plans.
• Analysts remain cautious overall, with a consensus rating of “Reduce” and an average price target of $9.67. Recent reports have included downgraded targets and one analyst cut, reflecting ongoing concerns about Lucid’s profitability and execution.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) were down 3.7% during trading on Monday . The company traded as low as $5.07 and last traded at $5.16. 10,433,697 shares traded hands during mid-day trading, a decline of 13% from the average daily volume of 12,047,155 shares. The stock had previously closed at $5.36.

Lucid Group News Summary

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

• Negative Sentiment: The workforce reduction and management shake-up signal ongoing pressure at Lucid as it works to improve profitability and align output with weaker-than-expected demand. Lucid to lay off roughly 18% of U.S. workforce, COO Marc Winterhoff leaves
• Negative Sentiment: This is Lucid’s second major layoff round this year, reinforcing investor concerns that the EV maker is still struggling to scale efficiently. Lucid Motors' new CEO cuts 18% of staff to ‘simplify the company'
• Negative Sentiment: The company expects about $158 million in annualized cost savings, but the savings come alongside slower production plans and broader uncertainty around growth. Lucid slashes US workforce amid cost-cutting push
• Neutral Sentiment: Several investor-rights firms also highlighted an active securities class action and a July 28 lead-plaintiff deadline, which adds legal overhang but does not change the immediate operating story. LCID Investors Have Opportunity to Lead Lucid Group, Inc. Securities Fraud Lawsuit with the Schall Law Firm

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the stock. Citigroup reiterated a "buy" rating and set a $14.00 price objective (down from $17.00) on shares of Lucid Group in a research note on Friday, May 15th. Benchmark downgraded shares of Lucid Group from a "buy" rating to a "hold" rating in a report on Wednesday, May 6th. Robert W. Baird set a $6.00 price target on shares of Lucid Group in a research report on Wednesday, May 6th. Royal Bank Of Canada decreased their price objective on shares of Lucid Group from $10.00 to $8.00 and set a "sector perform" rating on the stock in a research note on Monday, April 13th. Finally, TD Cowen lowered their price objective on shares of Lucid Group from $10.00 to $7.00 and set a "hold" rating for the company 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 issued a Sell rating to the stock. According to data from MarketBeat, Lucid Group currently has a consensus rating of "Reduce" and a consensus price target of $9.67.

Lucid Group Stock Performance

The company has a debt-to-equity ratio of 3.00, a current ratio of 1.02 and a quick ratio of 0.48. The stock has a market cap of $2.01 billion, a P/E ratio of -0.39 and a beta of 0.89. The stock has a 50-day simple moving average of $6.24 and a 200-day simple moving average of $9.16.

Lucid Group (NASDAQ:LCID - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported ($2.82) EPS for the quarter, missing analysts' consensus estimates of ($2.53) by ($0.29). Lucid Group had a negative return on equity of 304.01% and a negative net margin of 248.09%.The company had revenue of $282.46 million during the quarter, compared to the consensus estimate of $358.46 million. During the same period last year, the company posted ($0.20) EPS. The firm's revenue was up 20.2% compared to the same quarter last year. Research analysts forecast that Lucid Group, Inc. will post -10.75 earnings per share for the current year.

Institutional Trading of Lucid Group

Hedge funds have recently added to or reduced their stakes in the stock. Jain Global LLC grew its stake in shares of Lucid Group by 13.3% during the fourth quarter. Jain Global LLC now owns 10,220 shares of the company's stock worth $108,000 after buying an additional 1,200 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in shares of Lucid Group by 3.7% in the 4th quarter. The Manufacturers Life Insurance Company now owns 37,146 shares of the company's stock valued at $393,000 after acquiring an additional 1,336 shares during the last quarter. Mercer Global Advisors Inc. ADV lifted its stake in shares of Lucid Group by 11.8% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 13,590 shares of the company's stock valued at $144,000 after acquiring an additional 1,430 shares during the last quarter. SBI Securities Co. Ltd. boosted its holdings in shares of Lucid Group by 9.6% during the 4th quarter. SBI Securities Co. Ltd. now owns 17,970 shares of the company's stock valued at $190,000 after acquiring an additional 1,569 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in shares of Lucid Group by 16.0% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 11,645 shares of the company's stock valued at $123,000 after acquiring an additional 1,604 shares in the last quarter. 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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