Lucid Group (NASDAQ:LCID) Stock Falls 9.2% - Should You Sell?

Key Points

• Lucid shares fell 9.2% to $2.96 in Friday trading, with volume 51% above its average.
• Analysts have cut price targets, including TD Cowen’s reduction to $4 and Cantor Fitzgerald’s to $6. The consensus rating is “Reduce,” with a $7.11 average target.
• Lucid’s latest quarter missed expectations: it posted a $2.30-per-share loss and $350.32 million in revenue, below analyst forecasts, though revenue rose 4.1% year over year.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares dropped 9.2% during trading on Friday. The stock traded as low as $2.94 and last traded at $2.96. Approximately 20,133,205 shares were traded during mid-day trading, an increase of 51% from the average session volume of 13,373,601 shares. The stock had previously closed at $3.26.

Analyst Ratings Changes

Several research analysts have recently weighed in on LCID shares. TD Cowen reissued 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. Cantor Fitzgerald decreased their price objective 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. Robert W. Baird decreased their price objective on shares of Lucid Group from $6.00 to $5.00 and set a "neutral" rating for the company in a research note on Tuesday. Needham & Company LLC reiterated a "hold" rating on shares of Lucid Group in a research report on Tuesday. Finally, UBS Group reissued a "hold" rating on shares of Lucid Group in a research note on Tuesday, October 6th. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $7.11.

Lucid Group Stock Performance

The company has a market cap of $1.16 billion, a PE ratio of -0.22 and a beta of 0.80. The company has a 50 day simple moving average of $3.76 and a two-hundred day simple moving average of $6.57.

Lucid Group (NASDAQ:LCID - Get Free Report) last posted its quarterly earnings results on Monday, November 9th. The company reported ($2.30) earnings per share for the quarter, missing analysts' consensus estimates of ($2.27) by ($0.03). Lucid Group had a negative return on equity of 1,391.51% and a negative net margin of 253.58%. The company had revenue of $350.32 million during the quarter, compared to analyst estimates of $395.67 million. During the same period last year, the company posted ($2.65) earnings per share. The company's revenue was up 4.1% compared to the same quarter last year. As a group, analysts expect that Lucid Group, Inc. will post -11.56 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Bank of America Corp DE lifted its holdings in shares of 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 valued at $18,289,000 after buying an additional 189,134 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Lucid Group in the 2nd quarter valued at approximately $3,125,000. Lazard Asset Management LLC increased its holdings in Lucid Group by 192.6% in the first quarter. Lazard Asset Management LLC now owns 304,737 shares of the company's stock worth $2,904,000 after buying an additional 200,604 shares during the last quarter. Headlands Technologies LLC acquired a new position in Lucid Group in the second quarter worth approximately $1,368,000. Finally, Quantinno Capital Management LP raised its position in Lucid Group by 246.0% during the first quarter. Quantinno Capital Management LP now owns 202,651 shares of the company's stock valued at $1,931,000 after acquiring an additional 144,089 shares in the last quarter. 75.17% of the stock is owned by institutional investors and hedge funds.

About Lucid Group

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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