Lucid Group (NASDAQ:LCID) Trading Down 2.8% – Should You Sell?

Shares of Lucid Group, Inc. (NASDAQ:LCID) fell 2.8% on Wednesday . The stock traded as low as $5.75 and last traded at $5.82. 8,150,840 shares changed hands during trading, a decline of 34% from the average session volume of 12,342,494 shares. The stock had previously closed at $5.99.

Key Stories Impacting Lucid Group

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

• Negative Sentiment: Several law firms announced or promoted securities class action claims against Lucid Group, with allegations of investor harm and a looming lead plaintiff deadline, adding legal overhang for the stock.
• Negative Sentiment: One complaint alleges Lucid overstated its manufacturing and delivery capabilities and failed to disclose a supplier quality problem that disrupted Gravity deliveries, which could weigh on confidence in execution.
• Neutral Sentiment: Lucid also disclosed an $800 million liquidity draw, which may help near-term funding flexibility but reinforces the company’s capital-intensive business model and ongoing financing needs. Article link
• Negative Sentiment: Broader EV-sector weakness also appears to be a factor, with reports that the rally reversed and Lucid fell alongside Rivian, suggesting investors are rotating out of the group.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on LCID. Citigroup reiterated a “buy” rating and issued a $14.00 target price (down from $17.00) on shares of Lucid Group in a report on Friday, May 15th. Cantor Fitzgerald reissued a “neutral” rating and issued a $14.00 target price on shares of Lucid Group in a research report on Monday, May 4th. Benchmark lowered shares of Lucid Group from a “buy” rating to a “hold” rating in a report on Wednesday, May 6th. Robert W. Baird set a $6.00 price target on shares of Lucid Group in a research report on Wednesday, May 6th. Finally, Royal Bank Of Canada decreased their price objective on shares of Lucid Group from $10.00 to $8.00 and set a “sector perform” rating for the company in a research note on Monday, April 13th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus target price of $9.67.

Lucid Group Stock Performance

The firm has a 50-day simple moving average of $5.82 and a two-hundred day simple moving average of $8.59. The company has a market capitalization of $2.27 billion, a price-to-earnings ratio of -0.44 and a beta of 0.83. The company has a current ratio of 1.02, a quick ratio of 0.48 and a debt-to-equity ratio of 3.00.

Hedge Funds Weigh In On Lucid Group

Several institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada boosted its stake in shares of Lucid Group by 9.5% during the 1st quarter. Royal Bank of Canada now owns 110,716 shares of the company’s stock worth $267,000 after acquiring an additional 9,578 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Lucid Group by 89.9% in the 1st quarter. AQR Capital Management LLC now owns 537,801 shares of the company’s stock valued at $1,226,000 after acquiring an additional 254,551 shares in the last quarter. NewEdge Advisors LLC lifted its holdings in Lucid Group by 103.2% in the 1st quarter. NewEdge Advisors LLC now owns 37,987 shares of the company’s stock worth $92,000 after purchasing an additional 19,294 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in Lucid Group by 112.0% during the first quarter. Goldman Sachs Group Inc. now owns 5,440,620 shares of the company’s stock worth $13,166,000 after purchasing an additional 2,874,603 shares during the period. Finally, Empowered Funds LLC boosted its position in Lucid Group by 11.3% during the first quarter. Empowered Funds LLC now owns 110,844 shares of the company’s stock worth $268,000 after purchasing an additional 11,252 shares during the period. 75.17% of the stock is currently owned by institutional investors.

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.