Lucid Group (NASDAQ:LCID) Shares Down 6.2% - Here's Why

Key Points

• Lucid shares fell 6.2% to $4.55 in mid-day trading, well below their 50-day and 200-day moving averages of $6.26 and $7.30, respectively.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with one Buy, eight Hold, and three Sell ratings, and an average price target of $9.22.
• Lucid’s latest quarterly results showed a wider-than-expected loss of $2.78 per share, despite revenue of $405.35 million beating estimates; the company continues to report deeply negative margins and return on equity.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares were down 6.2% during mid-day trading on Tuesday . The company traded as low as $4.53 and last traded at $4.55. 11,628,350 shares traded hands during trading, a decline of 16% from the average daily volume of 13,801,656 shares. The stock had previously closed at $4.85.

Analyst Ratings Changes

Several research analysts recently commented on the company. Zacks Research raised Lucid Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 18th. Robert W. Baird set a $6.00 price target on shares of Lucid Group in a report on Wednesday, May 6th. Weiss Ratings restated a "sell (e+)" rating on shares of Lucid Group in a research note on Wednesday, June 24th. Citigroup reduced their price objective on shares of Lucid Group from $14.00 to $11.00 and set a "buy" rating for the company in a report on Wednesday, August 19th. Finally, William Blair lowered shares of Lucid Group to a "market perform" rating in a research report on Monday, August 3rd. One investment analyst has rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average target price of $9.22.

Lucid Group Stock Performance

The company has a current ratio of 1.14, a quick ratio of 0.57 and a debt-to-equity ratio of 3.00. The stock has a fifty day moving average price of $6.26 and a 200-day moving average price of $7.30. The firm has a market capitalization of $1.79 billion, a price-to-earnings ratio of -0.33 and a beta of 0.83.

Lucid Group (NASDAQ:LCID - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($2.78) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.36) by ($0.42). The company had revenue of $405.35 million for the quarter, compared to the consensus estimate of $381.59 million. Lucid Group had a negative net margin of 249.21% and a negative return on equity of 1,391.51%. The firm's revenue was up 56.2% compared to the same quarter last year. During the same period in the previous year, the business posted ($0.24) earnings per share. As a group, analysts anticipate that Lucid Group, Inc. will post -12.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lucid Group

A number of large investors have recently modified their holdings of the stock. Royal Bank of Canada grew its stake in shares of Lucid Group by 9.5% during the first quarter. Royal Bank of Canada now owns 110,716 shares of the company's stock valued at $267,000 after purchasing an additional 9,578 shares during the last quarter. AQR Capital Management LLC lifted its holdings in Lucid Group by 89.9% during the 1st quarter. AQR Capital Management LLC now owns 537,801 shares of the company's stock worth $1,226,000 after buying an additional 254,551 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Lucid Group by 103.2% during the 1st quarter. NewEdge Advisors LLC now owns 37,987 shares of the company's stock worth $92,000 after buying an additional 19,294 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in Lucid Group by 112.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 5,440,620 shares of the company's stock valued at $13,166,000 after buying an additional 2,874,603 shares during the last quarter. Finally, Empowered Funds LLC boosted its position in Lucid Group by 11.3% in the 1st quarter. Empowered Funds LLC now owns 110,844 shares of the company's stock valued at $268,000 after buying an additional 11,252 shares during the last quarter. 75.17% of the stock is currently owned by institutional investors and hedge funds.

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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