Lucid Group, Inc. (NASDAQ: LCID) experienced a decline of 3.9% on Tuesday, with shares trading as low as $9.50 before closing at $9.73. This drop is notable given that the stock had closed at $10.12 the previous day. During mid-day trading, approximately 10,323,134 shares exchanged hands, marking a significant increase of 38% compared to the average daily volume of 7,488,839 shares.
Analysts Provide Mixed Ratings
The recent performance of Lucid Group has prompted various analysts to revisit their recommendations. In a research note dated December 29, Weiss Ratings reaffirmed a “sell (e+)” rating on the company’s shares. Additionally, Stifel Nicolaus reduced its target price from $21.00 to $17.00, maintaining a “hold” rating. Similarly, the Royal Bank of Canada lowered its price target from $20.00 to $14.00, assigning a “sector perform” rating.
Other notable changes include Morgan Stanley, which downgraded its rating from “buy” to “underweight,” while also slashing the target price from $30.00 to $10.00. Out of the analysts covering Lucid Group, two have issued a Buy rating, six have designated it as a Hold, and four have recommended selling the stock. According to data from MarketBeat, the stock currently holds a consensus rating of “Reduce” with a target price of $18.92.
Quarterly Earnings Fall Short of Expectations
Lucid Group’s financial results released on November 5 revealed a challenging quarter. The company reported earnings per share (EPS) of ($2.65), missing the consensus estimate of ($2.32) by ($0.33). Revenue for the quarter stood at $336.58 million, which fell short of analysts’ expectations of $378.44 million. Despite the disappointing figures, the company reported a year-over-year revenue increase of 68.3%. Notably, Lucid Group recorded a negative return on equity of 85.13% and a negative net margin of 224.99%.
Looking ahead, analysts predict that Lucid Group is likely to post an EPS of ($1.25) for the current fiscal year.
Institutional Investment Trends
Recent activity among hedge funds indicates a fluctuating interest in Lucid Group. SG Americas Securities LLC increased its stake by 65.9% in the fourth quarter, acquiring an additional 71,966 shares, bringing its total to 181,153 shares valued at approximately $1.9 million. Other significant movements include Tudor Investment Corp, which established a new position worth nearly $1.36 billion in Lucid Group during the third quarter.
Additionally, IFP Advisors Inc. raised its stake by 315.0%, now holding 12,197 shares valued at $290,000. Notably, Uber Technologies Inc. also acquired a new stake valued at approximately $326.28 million. Overall, hedge funds and institutional investors currently hold 75.17% of Lucid Group’s stock.
Lucid Group, based in California, is an electric vehicle manufacturer that specializes in luxury electric sedans, with its flagship model being the Lucid Air. The company, founded in 2007, initially focused on battery technology and electric powertrains before venturing into its own branded vehicles. As it continues to navigate market challenges, stakeholders will be closely watching future developments and performance metrics.
