Lucid Group (NASDAQ:LCID) Stock Price Down 7.3% – Here’s Why

Lucid Group, Inc. (NASDAQ:LCID)’s share price traded down 7.3% on Wednesday . The stock traded as low as $5.70 and last traded at $5.72. 15,632,267 shares changed hands during trading, an increase of 34% from the average session volume of 11,693,881 shares. The stock had previously closed at $6.17.

Key Stories Impacting Lucid Group

Here are the key news stories impacting Lucid Group this week:

• Positive Sentiment: One note argued Lucid is deeply oversold and suggested the stock could rebound sharply if sentiment improves. Lucid Stock Is Deeply Oversold and We See 45% Gains Ahead
• Positive Sentiment: Lucid shareholders approved expanded 2021 equity incentive plans at the annual meeting, which may help the company retain and motivate employees. Lucid Shareholders Approve Expanded 2021 Equity Incentive Plans
• Neutral Sentiment: Lucid remains part of a three-way robotaxi agreement involving Uber and Nuro, which keeps its EV platform in a strategic mobility story, though the immediate stock impact is unclear. Uber reportedly commits $500m to robotaxi startup Nuro
• Negative Sentiment: A series of law firms, including Rosen, Wolf Haldenstein, Howard G. Smith, Pomerantz, Bernstein Liebhard, and others, announced or promoted class-action lawsuits and investigation notices against Lucid, creating a significant legal overhang and signaling possible investor concern about prior disclosures and financial results. Pomerantz Law Firm Announces the Filing of a Class Action Against Lucid Group, Inc. and Certain Officers – LCID
• Negative Sentiment: Recent commentary also highlighted leadership-transition and execution risks after Lucid appointed Silvio Napoli as CEO, with the stock facing renewed scrutiny over transparency and operational issues. Lucid Group CEO Shift Tests Execution, Transparency And Legal Risk

Analyst Ratings Changes

LCID has been the topic of a number of research reports. TD Cowen cut their price target on Lucid Group from $10.00 to $7.00 and set a “hold” rating on the stock in a report on Wednesday, May 6th. Morgan Stanley set a $5.00 price target on shares of Lucid Group in a research report on Wednesday, May 6th. Evercore set a $6.00 price target on shares of Lucid Group in a research report on Monday, May 11th. Cantor Fitzgerald reissued a “neutral” rating and set a $14.00 price target on shares of Lucid Group in a research report on Monday, May 4th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Lucid Group in a research report on Friday, March 27th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Reduce” and an average price target of $9.67.

Lucid Group Stock Performance

The company has a market cap of $1.99 billion, a P/E ratio of -0.39 and a beta of 0.89. The stock has a 50 day moving average price of $7.21 and a two-hundred day moving average price of $9.75. The company has a quick ratio of 0.48, a current ratio of 1.02 and a debt-to-equity ratio of 3.00.

Lucid Group (NASDAQ:LCID) last announced its earnings results on Tuesday, May 5th. The company reported ($2.82) EPS for the quarter, missing the consensus estimate of ($2.53) by ($0.29). Lucid Group had a negative return on equity of 304.01% and a negative net margin of 248.09%.The business had revenue of $282.47 million for the quarter, compared to the consensus estimate of $358.46 million. During the same period in the prior year, the business posted ($0.20) earnings per share. The firm’s revenue for the quarter was up 20.2% compared to the same quarter last year. On average, research analysts predict that Lucid Group, Inc. will post -10.75 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Lucid Group

Hedge funds have recently bought and sold shares of the company. Tudor Investment Corp ET AL bought a new stake in Lucid Group during the 3rd quarter worth $1,361,978,000. Uber Technologies Inc bought a new stake in shares of Lucid Group in the third quarter worth $326,283,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Lucid Group by 39.2% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 12,309,476 shares of the company’s stock worth $25,973,000 after purchasing an additional 3,465,542 shares during the last quarter. Vanguard Group Inc. grew its stake in shares of Lucid Group by 6.2% in the fourth quarter. Vanguard Group Inc. now owns 12,061,286 shares of the company’s stock worth $127,488,000 after purchasing an additional 701,826 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its stake 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 worth $13,166,000 after purchasing an additional 2,874,603 shares during the last quarter. 75.17% of the stock is owned by institutional investors.

About Lucid Group

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.