Lucid Group (NASDAQ:LCID) Stock Falls 11.2% on Analyst Downgrade

Lucid Group, Inc. (NASDAQ:LCID)’s share price fell 11.2% during mid-day trading on Thursday after Citigroup lowered their price target on the stock from $11.00 to $9.00. Citigroup currently has a buy rating on the stock. Lucid Group traded as low as $3.25 and last traded at $3.26. Approximately 12,135,767 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 13,340,486 shares. The stock had previously closed at $3.67.

Several other brokerages have also recently commented on LCID. Zacks Research upgraded shares of Lucid Group from a “strong sell” rating to a “hold” rating in a research report on Tuesday, August 18th. Needham & Company LLC restated a “hold” rating on shares of Lucid Group in a report on Tuesday. TD Cowen reaffirmed a “hold” rating and issued a $4.00 price objective (down from $7.00) on shares of Lucid Group in a research note on Tuesday. Morgan Stanley lowered their target price on shares of Lucid Group from $5.00 to $3.00 and set an “underweight” rating for the company in a report on Thursday, October 15th. Finally, Royal Bank Of Canada cut their price target on shares of Lucid Group from $7.00 to $4.00 and set a “sector perform” rating on the stock in a research report on Monday, October 12th. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce” and a consensus target price of $7.11.

Key Headlines Impacting Lucid Group

Investors following LCID have been watching these headlines:

• Neutral Sentiment: Analyst views are mixed: RBC maintained a Hold rating, while Citigroup kept a Buy rating but lowered its price target from $11 to $9. RBC maintains Hold rating Citigroup target change
• Negative Sentiment: Q3 revenue of $350.3 million fell short of the roughly $395.7 million consensus, and adjusted earnings per share of negative $2.30 also missed estimates. The shortfall reinforces concerns about ongoing losses and cash consumption. Q3 revenue results
• Negative Sentiment: Analysts including Cantor Fitzgerald, Robert W. Baird and TD Cowen lowered price targets, with TD Cowen citing higher-than-expected cash burn. Separately, a report highlighted the recall of 4,400 Gravity SUVs and a delay to the Cosmos SUV, raising execution risks and the possibility Lucid may need more capital if its planned vehicles do not gain traction. TD Cowen target and cash-burn concerns Gravity recall and Cosmos delay

Institutional Investors Weigh In On Lucid Group

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. EverSource Wealth Advisors LLC boosted its stake in shares of Lucid Group by 1,574.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company’s stock valued at $28,000 after buying an additional 2,740 shares during the period. IFP Advisors Inc grew its position in Lucid Group by 1,231.3% during the second quarter. IFP Advisors Inc now owns 3,781 shares of the company’s stock worth $25,000 after buying an additional 3,497 shares in the last quarter. Allworth Financial LP grew its position in Lucid Group by 249.9% during the second quarter. Allworth Financial LP now owns 4,010 shares of the company’s stock worth $27,000 after buying an additional 2,864 shares in the last quarter. Nykredit A S bought a new position in Lucid Group during the 2nd quarter worth $47,000. Finally, Meeder Advisory Services Inc. bought a new position in Lucid Group during the 1st quarter worth $98,000. 75.17% of the stock is currently owned by institutional investors and hedge funds.

Lucid Group Stock Performance

The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of -0.25 and a beta of 0.80. The company has a fifty day simple moving average of $3.79 and a two-hundred day simple moving average of $6.61.

Lucid Group (NASDAQ:LCID) last announced its quarterly earnings data on Monday, November 9th. The company reported ($2.30) earnings per share for the quarter, missing the consensus estimate of ($2.27) by ($0.03). The business had revenue of $350.32 million for the quarter, compared to the consensus estimate of $395.67 million. Lucid Group had a negative return on equity of 1,391.51% and a negative net margin of 253.58%. Lucid Group’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($2.65) earnings per share. As a group, equities analysts anticipate that Lucid Group, Inc. will post -12.15 earnings per share for the current year.

About Lucid Group

Lucid Group, Inc. designs, engineers and manufactures electric vehicles and related technologies. Its lineup includes the Lucid Air luxury electric sedan and the Lucid Gravity luxury SUV, which combine electric powertrains with software and battery systems developed by the company. The company was founded in 2007 as Atieva, initially focusing on electric-vehicle battery technology, and adopted the Lucid Motors name in 2016 as it expanded into vehicle development. Lucid is headquartered in Newark, California, and manufactures vehicles in Arizona, with additional production and assembly operations in Saudi Arabia.