Lucid Group (NASDAQ:LCID) Stock Falls 2.7% on Analyst Downgrade

Key Points

• Lucid shares fell 2.7% to $3.67 after Citigroup cut its price target from $11 to $9, while keeping a Buy rating; trading volume was 8% above average.
• Analyst views are mostly cautious: the stock has an average “Reduce” rating and a $7.11 average price target, with 10 Hold, three Sell, and one Buy ratings.
• Lucid’s latest quarter missed expectations, reporting an adjusted loss of $2.30 per share and revenue of $350.3 million versus forecasts of $395.7 million, despite 4.1% year-over-year revenue growth.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) traded down 2.7% during mid-day trading on Wednesday after Citigroup lowered their price target on the stock from $11.00 to $9.00. Citigroup currently has a buy rating on the stock. Lucid Group traded as low as $3.62 and last traded at $3.67. 14,379,069 shares traded hands during trading, an increase of 8% from the average session volume of 13,343,572 shares. The stock had previously closed at $3.77.

A number of other brokerages have also weighed in on LCID. William Blair lowered shares of Lucid Group to a "market perform" rating in a report on Monday, August 3rd. Zacks Research raised shares of Lucid Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 18th. TD Cowen reiterated a "hold" rating and issued a $4.00 target price (down from $7.00) on shares of Lucid Group in a research report on Tuesday. Royal Bank Of Canada lowered their price target on shares of Lucid Group from $7.00 to $4.00 and set a "sector perform" rating for the company in a research note on Monday, October 12th. Finally, Cantor Fitzgerald lowered their price target on shares of Lucid Group from $8.00 to $6.00 and set a "neutral" rating for the company in a research note on Tuesday. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $7.11.

Recent Lucid Group Headlines

Here are a few of the latest headlines about LCID:

• Positive Sentiment: Lucid secured a $1.75 billion expansion of its credit facility from Saudi Arabia’s Public Investment Fund, bringing reported pro forma liquidity to about $3.75 billion and extending its operating runway into the fourth quarter of 2027. Lucid expands PIF credit facility by $1.75bn
• Neutral Sentiment: RBC Capital maintained its Hold rating, citing early progress in Lucid’s operational reset while emphasizing that execution remains a key risk. Lucid's Operational Reset Shows Early Progress While Execution Stays Key Risk
• Negative Sentiment: Reports that Lucid recalled 4,400 Gravity SUVs and delayed its Cosmos midsize SUV add quality and launch-timing risks. The company may need additional financing if the upcoming model does not gain traction quickly. Lucid recalled Gravity SUVs and delayed the Cosmos

Institutional Trading of Lucid Group

A number of institutional investors have recently made changes to their positions in LCID. EverSource Wealth Advisors LLC increased its stake in shares of Lucid Group by 1,574.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company's stock worth $28,000 after buying an additional 2,740 shares during the period. IFP Advisors Inc raised its holdings in Lucid Group by 1,231.3% during the 2nd quarter. IFP Advisors Inc now owns 3,781 shares of the company's stock valued at $25,000 after buying an additional 3,497 shares during the last quarter. Allworth Financial LP raised its holdings in Lucid Group by 249.9% during the 2nd quarter. Allworth Financial LP now owns 4,010 shares of the company's stock valued at $27,000 after buying an additional 2,864 shares during the last quarter. Nykredit A S purchased a new stake in Lucid Group during the 2nd quarter valued at $47,000. Finally, Meeder Advisory Services Inc. purchased a new stake in Lucid Group during the 1st quarter valued at $98,000. Hedge funds and other institutional investors own 75.17% of the company's stock.

Lucid Group Stock Performance

The firm has a market cap of $1.45 billion, a PE ratio of -0.28 and a beta of 0.80. The company's 50-day simple moving average is $3.81 and its two-hundred day simple moving average is $6.65.

Lucid Group (NASDAQ:LCID - Get Free Report) last released its quarterly earnings data on Monday, November 9th. The company reported ($2.30) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($2.27) by ($0.03). The firm had revenue of $350.32 million during the quarter, compared to analysts' expectations of $395.67 million. Lucid Group had a negative net margin of 253.58% and a negative return on equity of 1,391.51%. Lucid Group's revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($2.65) EPS. On average, analysts expect that Lucid Group, Inc. will post -12.15 EPS for the current year.

Lucid Group Company Profile

Lucid Group, Inc. designs, engineers and manufactures electric vehicles and related technologies. Its lineup includes the Lucid Air luxury electric sedan and the Lucid Gravity luxury SUV, which combine electric powertrains with software and battery systems developed by the company. The company was founded in 2007 as Atieva, initially focusing on electric-vehicle battery technology, and adopted the Lucid Motors name in 2016 as it expanded into vehicle development. Lucid is headquartered in Newark, California, and manufactures vehicles in Arizona, with additional production and assembly operations in Saudi Arabia.

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