Lucid Group (NASDAQ:LCID) Stock Falls 2.6% - Time to Sell?

Key Points

• Lucid shares fell 2.6% to $3.31 during mid-day trading, with volume below the stock’s average daily activity. The stock remains well below its 50-day and 200-day moving averages of $4.27 and $7.07, respectively.
• Analyst sentiment is broadly negative: coverage includes one Buy, nine Hold, and three Sell ratings, producing a consensus “Reduce” rating. Morgan Stanley lowered its price target to $3, while the average analyst target is $8.67.
• Lucid continues to face substantial profitability challenges, reporting a quarterly EPS loss of $2.78 versus an expected loss of $2.36, alongside a negative net margin of 249.21%. Institutional investors nonetheless own 75.17% of the company’s shares.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) traded down 2.6% during mid-day trading on Tuesday. The company traded as low as $3.23 and last traded at $3.31. 10,830,451 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 13,265,601 shares. The stock had previously closed at $3.40.

Analyst Ratings Changes

LCID has been the subject of several recent research reports. Morgan Stanley cut their price target on Lucid Group from $5.00 to $3.00 and set an "underweight" rating for the company in a research note on Thursday, October 15th. Weiss Ratings restated a "sell (e+)" rating on shares of Lucid Group in a research note on Monday, September 21st. UBS Group reaffirmed a "hold" rating on shares of Lucid Group in a report on Tuesday, October 6th. Citigroup reduced their target price on Lucid Group from $14.00 to $11.00 and set a "buy" rating on the stock in a report on Wednesday, August 19th. Finally, Zacks Research raised shares of Lucid Group from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 18th. One investment analyst has rated the stock with a Buy rating, nine have given a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $8.67.

Lucid Group Price Performance

The stock has a market cap of $1.30 billion, a P/E ratio of -0.24 and a beta of 1.00. The stock has a 50-day simple moving average of $4.27 and a 200-day simple moving average of $7.07.

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

Institutional Trading of Lucid Group

A number of hedge funds and other institutional investors have recently modified their holdings of LCID. Bank of New York Mellon Corp bought a new position in shares of Lucid Group in the 2nd quarter valued at $3,125,000. Headlands Technologies LLC acquired a new stake in shares of Lucid Group during the 2nd quarter valued at $1,368,000. Lazard Asset Management LLC grew its position in Lucid Group by 192.6% during the 1st quarter. Lazard Asset Management LLC now owns 304,737 shares of the company's stock worth $2,904,000 after acquiring an additional 200,604 shares during the last quarter. Bank of America Corp DE grew its position in Lucid Group by 10.9% during the 1st quarter. Bank of America Corp DE now owns 1,919,073 shares of the company's stock worth $18,289,000 after acquiring an additional 189,134 shares during the last quarter. Finally, Quantinno Capital Management LP grew its position in Lucid Group by 246.0% during the 1st quarter. Quantinno Capital Management LP now owns 202,651 shares of the company's stock worth $1,931,000 after acquiring an additional 144,089 shares during the last quarter. Institutional investors own 75.17% of the company's stock.

Lucid Group Company Profile

Lucid Group, Inc is an electric vehicle and technology company headquartered in Newark, California. Through its Lucid Motors subsidiary, the company designs, engineers, and manufactures premium electric vehicles, with an emphasis on range, energy efficiency, performance, and advanced in-car technology.

Lucid's vehicle lineup includes the Lucid Air luxury electric sedan and the Lucid Gravity electric SUV. The company also develops electric powertrains, battery systems, software, and other technologies for its vehicles.

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