Lucid Group, Inc. (NASDAQ: LCID) saw its stock price rise by 5.5% on Friday, reaching a high of $11.26 before closing at $11.15. Approximately 6,656,888 shares changed hands, reflecting a decrease of 5% compared to the average daily trading volume of 7,032,931 shares. The stock had previously settled at $10.57.
Analyst Ratings Influence Market Performance
Recent analyst activity has significantly impacted investor sentiment regarding Lucid Group. On November 19, Cantor Fitzgerald reiterated an “overweight” rating, signaling optimism about the company’s potential. Conversely, Weiss Ratings maintained a “sell (e+)” rating, advising caution.
Notably, Morgan Stanley downgraded Lucid from a “buy” to an “underweight” rating and reduced its target price from $30.00 to $10.00 in a report issued on December 8. Stifel Nicolaus also revised its price target, lowering it from $21.00 to $17.00 while maintaining a “hold” rating. Currently, two analysts rate Lucid Group as a Buy, five as a Hold, and four as a Sell, according to MarketBeat.com. The stock carries an average rating of “Reduce” with a price target of $21.54.
Quarterly Earnings Report Highlights Challenges
Lucid Group recently reported its quarterly earnings on November 5, revealing a loss of ($2.65) earnings per share (EPS). This figure fell short of analysts’ expectations, which had projected a loss of ($2.32). The company generated revenue of $336.58 million, well below the consensus estimate of $378.44 million.
Despite these challenges, Lucid Group experienced a year-over-year revenue increase of 68.3%. The previous year’s EPS was ($2.76), indicating some improvement. Analysts anticipate that Lucid Group will report an EPS of ($1.25) for the current fiscal year.
Institutional Investment Trends
Institutional investors have recently adjusted their stakes in Lucid Group. Notably, Tudor Investment Corp ET AL acquired a new position valued at approximately $1.36 billion in the third quarter. Additionally, IFP Advisors Inc increased its holdings by 315%, now owning 12,197 shares after purchasing an additional 9,258 shares.
Other significant acquisitions include Dark Forest Capital Management LP, which purchased shares worth $1.23 million, and Uber Technologies Inc, which acquired a position valued at around $326.28 million. Currently, institutional investors hold approximately 75.17% of Lucid Group’s stock.
Lucid Group, based in California, specializes in the design and production of luxury electric vehicles, with its flagship model being the Lucid Air. This vehicle is noted for its energy efficiency, extended range, and performance capabilities. Founded in 2007 as Atieva, the company initially focused on battery technology before transitioning to its branded vehicles.
As the electric vehicle market continues to evolve, Lucid Group’s performance and strategic decisions will be closely monitored by investors and analysts alike.
