Lucid Group (NASDAQ:LCID) Shares Down 10% – Here’s What Happened

Lucid Group, Inc. (NASDAQ:LCID)’s share price dropped 10% during trading on Friday . The stock traded as low as $5.09 and last traded at $5.11. Approximately 24,246,451 shares changed hands during mid-day trading, an increase of 105% from the average daily volume of 11,805,322 shares. The stock had previously closed at $5.68.

Trending Headlines about Lucid Group

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

• Positive Sentiment: Lucid is also being linked to a broader electric-vehicle and autonomy ecosystem, with reports that Uber is committing capital to Nuro, which is part of a three-way agreement involving Uber and Lucid; that could support longer-term strategic interest in the company. Uber reportedly commits $500m to robotaxi startup Nuro
• Neutral Sentiment: Lucid shares have been the subject of repeated investor-alert articles and “what’s going on” coverage, reflecting elevated attention and uncertainty rather than a new operational announcement. Lucid shares pause Thursday: What’s going on?
• Negative Sentiment: Several law firms announced or renewed class-action claims alleging Lucid and certain executives violated federal securities laws, which tends to weigh on sentiment by increasing legal risk and potential costs. SHAREHOLDER ALERT Bernstein Liebhard LLP Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against Lucid Group, Inc. (LCID)
• Negative Sentiment: Analyst-style follow-up pieces highlighted that Lucid is down since its last earnings report, reinforcing concerns about execution after a disappointing quarter and keeping focus on whether the stock can rebound. Lucid Group (LCID) Down 7.6% Since Last Earnings Report: Can It Rebound?

Wall Street Analyst Weigh In

LCID has been the subject of several recent research reports. TD Cowen cut their price target on Lucid Group from $10.00 to $7.00 and set a “hold” rating for the company in a report on Wednesday, May 6th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Lucid Group in a report on Friday, March 27th. Citigroup reaffirmed a “buy” rating and issued a $14.00 price target (down from $17.00) on shares of Lucid Group in a report on Friday, May 15th. Benchmark cut Lucid Group from a “buy” rating to a “hold” rating in a report on Wednesday, May 6th. Finally, Royal Bank Of Canada cut their price target on Lucid Group from $10.00 to $8.00 and set a “sector perform” rating for the company in a report on Monday, April 13th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus target price of $9.67.

Lucid Group Stock Performance

The company has a current ratio of 1.02, a quick ratio of 0.48 and a debt-to-equity ratio of 3.00. The stock has a fifty day moving average price of $7.21 and a 200-day moving average price of $9.75. The firm has a market capitalization of $1.99 billion, a price-to-earnings ratio of -0.39 and a beta of 0.89.

Lucid Group (NASDAQ:LCID) last issued its earnings results on Tuesday, May 5th. The company reported ($2.82) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 company had revenue of $282.47 million during the quarter, compared to analyst estimates of $358.46 million. During the same period in the previous year, the company posted ($0.20) earnings per share. The company’s quarterly revenue was up 20.2% on a year-over-year basis. As a group, analysts anticipate 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 modified their holdings of the stock. EverSource Wealth Advisors LLC raised its holdings in shares of Lucid Group by 1,574.7% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company’s stock worth $28,000 after buying an additional 2,740 shares in the last quarter. Brown Advisory Inc. raised its holdings in shares of Lucid Group by 47.5% in the 2nd quarter. Brown Advisory Inc. now owns 15,530 shares of the company’s stock worth $33,000 after buying an additional 5,000 shares in the last quarter. Jump Financial LLC acquired a new position in shares of Lucid Group in the 2nd quarter worth approximately $41,000. Worldquant Millennium Advisors LLC bought a new stake in Lucid Group during the 2nd quarter worth approximately $59,000. Finally, Leonteq Securities AG bought a new stake in Lucid Group during the 4th quarter worth approximately $67,000. 75.17% of the stock is owned by institutional investors and hedge funds.

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.