Lucid Group (NASDAQ:LCID) Trading Down 5.9% - Time to Sell?

Key Points

• Lucid shares fell 5.9% to $4.95 in heavy trading, with volume about 20% above its daily average.
• Analyst sentiment remains cautious: LCID has an average “Reduce” rating, with one Buy, eight Hold and three Sell ratings, and an average price target of $9.22.
• Lucid continues to report significant losses, including a quarterly EPS miss of $2.78 versus the $2.36 estimate, despite revenue rising 56.2% year over year to $405.35 million.

Shares of Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) dropped 5.9% during mid-day trading on Wednesday . The company traded as low as $4.83 and last traded at $4.95. Approximately 16,579,523 shares traded hands during trading, an increase of 20% from the average daily volume of 13,763,823 shares. The stock had previously closed at $5.26.

Wall Street Analysts Forecast Growth

LCID has been the subject of a number of recent research reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Lucid Group in a report on Wednesday, June 24th. William Blair lowered Lucid Group to a "market perform" rating in a research note on Monday, August 3rd. Zacks Research upgraded Lucid Group from a "strong sell" rating to a "hold" rating in a report on Tuesday, August 18th. Evercore set a $6.00 price objective on shares of Lucid Group in a report on Monday, May 11th. Finally, Robert W. Baird set a $6.00 target price on shares of Lucid Group in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average target price of $9.22.

Lucid Group Stock Performance

The firm has a market cap of $1.95 billion, a price-to-earnings ratio of -0.36 and a beta of 0.83. The company has a quick ratio of 0.57, a current ratio of 1.14 and a debt-to-equity ratio of 3.00. The company has a 50 day moving average of $6.28 and a 200 day moving average of $7.46.

Lucid Group (NASDAQ:LCID - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported ($2.78) EPS for the quarter, missing the consensus estimate 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 return on equity of 1,391.51% and a negative net margin of 249.21%.The business's revenue for the quarter was up 56.2% on a year-over-year basis. During the same period in the previous year, the business posted ($0.24) EPS. As a group, equities research analysts expect that Lucid Group, Inc. will post -12.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LCID. Royal Bank of Canada grew its stake in shares of Lucid Group by 9.5% in the 1st quarter. Royal Bank of Canada now owns 110,716 shares of the company's stock worth $267,000 after purchasing an additional 9,578 shares during the last quarter. AQR Capital Management LLC grew its position in Lucid Group by 89.9% in the first 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 during the last quarter. NewEdge Advisors LLC grew its position in Lucid Group by 103.2% in the first quarter. NewEdge Advisors LLC now owns 37,987 shares of the company's stock worth $92,000 after buying an additional 19,294 shares during the last quarter. Goldman Sachs Group Inc. increased its holdings in shares of Lucid Group by 112.0% in the first 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 in the last quarter. Finally, Empowered Funds LLC lifted its position in shares of Lucid Group by 11.3% during the 1st quarter. Empowered Funds LLC now owns 110,844 shares of the company's stock valued at $268,000 after acquiring an additional 11,252 shares during the last quarter. 75.17% of the stock is currently owned by institutional investors.

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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