Lucid Group (NASDAQ:LCID) Shares Down 9.9% – Should You Sell?

Lucid Group, Inc. (NASDAQ:LCID) shares were down 9.9% during trading on Tuesday . The stock traded as low as $5.99 and last traded at $6.00. 12,446,774 shares changed hands during trading, an increase of 1% from the average session volume of 12,364,580 shares. The stock had previously closed at $6.66.

Key Stories Impacting Lucid Group

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

• Positive Sentiment: Lucid said it strengthened liquidity with an $800 million draw, which may ease concerns about funding its capital-intensive EV business. Lucid Group strengthens liquidity with $800 million draw
• Positive Sentiment: Investors are digesting Q2 production and deliveries plus a broad executive shakeup, which could be viewed as an effort to improve operational execution and reset strategy. Lucid Stock Steady Thursday as Management Reorganizes C-Suite: What Investors Need to Know
• Neutral Sentiment: Multiple law firms are urging LCID shareholders to act before the July 28 lead-plaintiff deadline in an existing securities-fraud class action, keeping the stock in the headlines but not adding new legal developments. Deadline Alert for CALX, AVAV, ZTS, LCID
• Neutral Sentiment: Additional notices from firms including Schall, Bernstein Liebhard, Kaplan Fox, Rosen, Faruqi & Faruqi, Berger Montague, and Pomerantz are reinforcing the same class-action theme around Lucid’s February-April class period. LCID Investors Have Opportunity to Lead Lucid Group, Inc. Securities Fraud Lawsuit with the Schall Law Firm
• Negative Sentiment: Ongoing securities-fraud lawsuit headlines could continue to weigh on sentiment because they raise legal overhang and potential liability concerns for Lucid Group, Inc. (NASDAQ: LCID). Pomerantz Law Firm Announces the Filing of a Class Action Against Lucid Group, Inc. and Certain Officers – LCID
• Negative Sentiment: Recent EV-sector weakness also hurt LCID sentiment, as Lucid fell alongside Rivian when the broader electric-vehicle rally reversed. Rivian Craters 14% on 75M Share Offering, Lucid Falls 9% as EV Rally Reverses

Analyst Ratings Changes

A number of research analysts have commented on the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of Lucid Group in a research report on Wednesday, June 24th. Citigroup reiterated a “buy” rating and issued a $14.00 price objective (down from $17.00) on shares of Lucid Group in a research report on Friday, May 15th. TD Cowen reduced their target price on shares of Lucid Group from $10.00 to $7.00 and set a “hold” rating on the stock in a research note 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, Benchmark downgraded shares of Lucid Group from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Reduce” and a consensus target price of $9.67.

Lucid Group Stock Up 0.1%

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 firm’s fifty day moving average price is $5.82 and its 200-day moving average price is $8.55. The company has a market cap of $2.27 billion, a price-to-earnings ratio of -0.44 and a beta of 0.83.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC grew its position 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 valued at $28,000 after purchasing an additional 2,740 shares during the period. Brown Advisory Inc. lifted its stake in Lucid Group by 47.5% in the second quarter. Brown Advisory Inc. now owns 15,530 shares of the company’s stock valued at $33,000 after buying an additional 5,000 shares in the last quarter. Jump Financial LLC bought a new position in Lucid Group in the second quarter valued at approximately $41,000. Worldquant Millennium Advisors LLC acquired a new position in shares of Lucid Group in the second quarter valued at approximately $59,000. Finally, Leonteq Securities AG acquired a new position in shares of Lucid Group in the fourth quarter valued at approximately $67,000. 75.17% of the stock is owned by institutional investors and hedge funds.

Lucid Group Company Profile

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.