Lucid Group (NASDAQ:LCID) Trading Down 7.8% - Should You Sell?

Key Points

• Lucid shares fell 7.8% to $4.27 in heavy trading, well below their 50-day and 200-day moving averages of $6.12 and $7.08, respectively.
• Analyst sentiment remains cautious: one analyst rates the stock Buy, eight Hold and three Sell, producing a consensus “Reduce” rating and an average price target of $9.22.
• Lucid reported quarterly revenue of $405.35 million, up 56.2% year over year and above estimates, but its $2.78 per-share loss missed expectations; analysts project a full-year loss of $12.15 per share.

Lucid Group, Inc. (NASDAQ:LCID - Get Free Report) shares fell 7.8% during trading on Wednesday . The stock traded as low as $4.21 and last traded at $4.27. Approximately 14,550,207 shares traded hands during mid-day trading, an increase of 6% from the average daily volume of 13,710,621 shares. The stock had previously closed at $4.63.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on LCID shares. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $7.00 price objective (down from $8.00) on shares of Lucid Group in a research report on Monday, July 13th. Cantor Fitzgerald reissued a "neutral" rating on shares of Lucid Group in a research report on Monday, August 3rd. Weiss Ratings restated a "sell (e+)" rating on shares of Lucid Group in a report on Wednesday, June 24th. Zacks Research raised shares of Lucid Group from a "strong sell" rating to a "hold" rating in a research report on Tuesday, August 18th. Finally, William Blair downgraded shares of Lucid Group to a "market perform" rating in a research report on Monday, August 3rd. One research analyst has rated the stock with a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $9.22.

Lucid Group Stock Down 7.8%

The company's 50-day moving average is $6.12 and its 200 day moving average is $7.08. The stock has a market capitalization of $1.68 billion, a PE ratio of -0.31 and a beta of 0.81. The company has a current ratio of 1.14, a quick ratio of 0.57 and a debt-to-equity ratio of 3.00.

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

Institutional Trading of Lucid Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LCID. Bank of America Corp DE boosted its stake in shares of Lucid Group by 10.9% in the first quarter. Bank of America Corp DE now owns 1,919,073 shares of the company's stock worth $18,289,000 after buying an additional 189,134 shares during the last quarter. Lazard Asset Management LLC raised its position in Lucid Group by 192.6% during the first quarter. Lazard Asset Management LLC now owns 304,737 shares of the company's stock valued at $2,904,000 after acquiring an additional 200,604 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Lucid Group in the second quarter valued at approximately $3,125,000. Vanguard Group Inc. lifted its holdings in Lucid Group by 6.2% in the fourth quarter. Vanguard Group Inc. now owns 12,061,286 shares of the company's stock valued at $127,488,000 after acquiring an additional 701,826 shares during the period. Finally, Virtu Financial LLC purchased a new stake in Lucid Group in the 4th quarter worth approximately $1,355,000. Institutional investors and hedge funds own 75.17% of the company's stock.

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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