Lucid Group (NASDAQ:LCID) Stock Price Down 11.2% on Analyst Downgrade

Key Points

• Lucid shares fell 11.2% to $3.26 after Citigroup cut its price target from $11 to $9, while maintaining a Buy rating.
• Analyst sentiment is broadly cautious: Lucid has a consensus “Reduce” rating and a $7.11 average price target, with several firms recently lowering targets or ratings.
• Lucid’s latest quarter missed expectations, reporting a $2.30 loss per share and $350.3 million in revenue versus estimates of a $2.27 loss and $395.7 million in revenue.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares were down 11.2% on Thursday 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 $3.25 and last traded at $3.26. 12,135,767 shares were traded during trading, a decline of 9% from the average session volume of 13,340,486 shares. The stock had previously closed at $3.67.

A number of other research analysts also recently commented on the company. Royal Bank Of Canada reduced their target price on Lucid Group from $7.00 to $4.00 and set a "sector perform" rating on the stock in a report on Monday, October 12th. UBS Group reiterated a "hold" rating on shares of Lucid Group in a report on Tuesday, October 6th. Morgan Stanley dropped their price target on Lucid Group from $5.00 to $3.00 and set an "underweight" rating on the stock in a research report on Thursday, October 15th. William Blair cut Lucid Group to a "market perform" rating in a research note on Monday, August 3rd. Finally, 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 report on Tuesday. One investment analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus price target of $7.11.

Lucid Group News Roundup

Here's some of the latest news about LCID:

• Positive Sentiment: Lucid expanded its credit facility with Saudi Arabia’s Public Investment Fund by $1.75 billion, bringing pro forma liquidity to $3.75 billion and extending its stated operating runway into Q4 2027. The financing eases immediate cash concerns, though it is debt rather than a resolution of the company’s underlying profitability challenges. Lucid expands PIF credit facility
• Neutral Sentiment: Analyst views are mixed: RBC maintained a Hold rating, while Citigroup kept a Buy rating but lowered its price target from $11 to $9. RBC maintains Hold rating Citigroup target change
• Negative Sentiment: Analysts including Cantor Fitzgerald, Robert W. Baird and TD Cowen lowered price targets, with TD Cowen citing higher-than-expected cash burn. Separately, a report highlighted the recall of 4,400 Gravity SUVs and a delay to the Cosmos SUV, raising execution risks and the possibility Lucid may need more capital if its planned vehicles do not gain traction. TD Cowen target and cash-burn concerns Gravity recall and Cosmos delay

Hedge Funds Weigh In On Lucid Group

A number of hedge funds have recently modified their holdings of LCID. Bank of America Corp DE increased its stake in Lucid Group by 10.9% in 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 period. Bank of New York Mellon Corp acquired a new stake in shares of Lucid Group during the 2nd quarter valued at $3,125,000. Lazard Asset Management LLC boosted its stake in shares of Lucid Group by 192.6% during the 1st quarter. Lazard Asset Management LLC now owns 304,737 shares of the company's stock valued at $2,904,000 after buying an additional 200,604 shares during the period. Headlands Technologies LLC purchased a new position in shares of Lucid Group during the 2nd quarter valued at $1,368,000. Finally, Quantinno Capital Management LP grew its holdings in shares of Lucid Group by 246.0% during the 1st 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 currently owned by institutional investors and hedge funds.

Lucid Group Stock Down 11.2%

The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of -0.25 and a beta of 0.80. The stock's 50 day moving average price is $3.79 and its two-hundred day moving average price is $6.61.

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

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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