Lucid Group, Inc. (NASDAQ: LCID) saw its stock price increase by 5.5% on Friday, closing at $11.15 after reaching a high of $11.26 during the trading session. Approximately 6,656,888 shares changed hands, which represents a 5% decline from its average daily trading volume of 7,032,931. The stock previously closed at $10.57.
Analyst Ratings and Market Sentiment
Recent evaluations from several equities analysts provide a mixed perspective on Lucid Group’s future. On November 19, 2023, Cantor Fitzgerald reaffirmed an “overweight” rating on the company’s shares, which indicates a positive outlook. Conversely, Weiss Ratings maintained a “sell (e+)” rating. In a significant shift, Morgan Stanley downgraded Lucid from a “buy” to an “underweight” rating, slashing their target price from $30.00 to $10.00 in a report issued on December 8, 2023.
Additionally, Stifel Nicolaus lowered its price target for Lucid Group from $21.00 to $17.00, while also issuing a “hold” rating. Overall, the current consensus from analysts includes two “buy” ratings, five “hold” ratings, and four “sell” ratings. According to MarketBeat.com, the average rating for the stock stands at “Reduce,” with an average price target of $21.54.
Quarterly Earnings and Financial Performance
Lucid Group’s latest quarterly earnings report, released on November 5, 2023, revealed a loss of ($2.65) per share, which fell short of analysts’ expectations of ($2.32) by ($0.33). The company reported revenues of $336.58 million, significantly below the consensus estimate of $378.44 million. Despite these disappointing figures, Lucid Group’s revenue showed a year-over-year increase of 68.3%. The firm reported a negative net margin of 224.99% and a negative return on equity of 85.13%. Analysts predict that Lucid Group will post an earnings per share (EPS) of ($1.25) for the current fiscal year.
Several institutional investors have recently adjusted their positions in Lucid Group. Tudor Investment Corp ET AL made a notable entry into the company in the third quarter, acquiring shares valued at approximately $1.36 billion. Other significant investments include IFP Advisors Inc, which increased its holdings by 315% during the same period, bringing their total to 12,197 shares worth $290,000. Additionally, Uber Technologies Inc acquired a new position valued at around $326.28 million. Currently, institutional investors own 75.17% of Lucid Group’s stock.
Founded in 2007 and based in California, Lucid Group specializes in manufacturing electric vehicles, focusing on luxury electric sedans. The company’s flagship model, the Lucid Air, showcases advanced battery and powertrain technology, emphasizing energy efficiency and high performance. Lucid Group also provides charging solutions and software services designed to enhance the ownership experience and promote zero-emission transportation.
As the electric vehicle market continues to evolve, Lucid Group’s performance and strategic decisions will be closely monitored by investors and analysts alike.
