Lucid Group (NASDAQ:LCID) Stock Price Down 7.4% – Here’s Why

Lucid Group, Inc. (NASDAQ:LCID) traded down 7.4% during trading on Wednesday . The stock traded as low as $6.69 and last traded at $6.78. Approximately 16,992,930 shares changed hands during mid-day trading, an increase of 20% from the average daily volume of 14,217,721 shares. The stock had previously closed at $7.32.

Key Headlines Impacting Lucid Group

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

• Positive Sentiment: A Motley Fool article compares Lucid with Archer Aviation and notes that Lucid still has a major growth story through its luxury EV production ramp and a large purchase agreement with the Saudi government, which supports the long-term investment case. Article Title
• Neutral Sentiment: LCID was downgraded by Zacks Research from hold to strong sell, and other brokerage coverage shows an average rating of reduce, reinforcing cautious sentiment from analysts. Article Title
• Negative Sentiment: Multiple class-action notices may weigh on sentiment because they spotlight alleged investor harm, legal uncertainty, and the risk of further headlines around Lucid’s past disclosures and operating performance. Article Title

Analysts Set New Price Targets

LCID has been the topic of a number of research reports. TD Cowen cut 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. Benchmark lowered shares of Lucid Group from a “buy” rating to a “hold” rating in a report on Wednesday, May 6th. Citigroup reiterated a “buy” rating and set a $14.00 target price (down from $17.00) on shares of Lucid Group in a report on Friday, May 15th. Evercore set a $6.00 target price on Lucid Group in a research report on Monday, May 11th. Finally, Morgan Stanley set a $5.00 target price on Lucid Group in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, six have assigned a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, Lucid Group currently has an average rating of “Reduce” and an average target price of $9.56.

Lucid Group Stock Down 7.4%

The stock’s 50 day simple moving average is $5.84 and its two-hundred day simple moving average is $8.21. The firm has a market cap of $2.65 billion, a P/E ratio of -0.51 and a beta of 0.83. The company has a debt-to-equity ratio of 3.00, a current ratio of 1.02 and a quick ratio of 0.48.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LCID. Handelsbanken Fonder AB boosted its holdings in Lucid Group by 81.9% in the second quarter. Handelsbanken Fonder AB now owns 73,729 shares of the company’s stock worth $493,000 after acquiring an additional 33,200 shares in the last quarter. CX Institutional grew its stake in shares of Lucid Group by 69.6% in the second quarter. CX Institutional now owns 13,207 shares of the company’s stock worth $88,000 after acquiring an additional 5,422 shares during the last quarter. Verus Capital Partners LLC bought a new position in shares of Lucid Group during the first quarter valued at $108,000. Essential Partners LLC bought a new position in shares of Lucid Group during the first quarter valued at $126,000. Finally, J. Derek Lewis & Associates Inc. raised its position in shares of Lucid Group by 32.8% in the 1st quarter. J. Derek Lewis & Associates Inc. now owns 19,820 shares of the company’s stock worth $189,000 after purchasing an additional 4,896 shares during the last quarter. Institutional investors own 75.17% of the company’s stock.

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.