Lucid Group (NASDAQ:LCID) Shares Down 1.6% – Here’s Why

Lucid Group, Inc. (NASDAQ:LCID)’s stock price dropped 1.6% during mid-day trading on Friday . The stock traded as low as $4.95 and last traded at $5.01. Approximately 8,045,627 shares traded hands during mid-day trading, a decline of 42% from the average session volume of 13,832,136 shares. The stock had previously closed at $5.09.

Key Stories Impacting Lucid Group

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

• Positive Sentiment: Lucid announced three leadership appointments spanning commercial operations, finance, and marketing. Management said the hires are intended to improve execution, financial discipline, and customer engagement—areas that could support the company’s turnaround if the new team delivers. Lucid Adds New Leaders Across Commercial, Finance, and Marketing
• Positive Sentiment: The company’s Gravity strategy and recently unveiled three-row crossover provide potential growth catalysts, although investors have so far focused more on execution, demand, and funding risks than on the product announcement. Lucid Group: Is Its Gravity Strategy Taking Shape?
• Neutral Sentiment: Unusually heavy call-option activity—92,106 calls purchased, up 84% from average volume—signals increased speculative interest, but it does not establish a clear direction for the shares.
• Negative Sentiment: Lucid is recalling 27,185 Air sedans in the United States after the National Highway Traffic Safety Administration said an exterior lighting circuit could overheat and raise the risk of fire. The recall may increase costs and further weigh on consumer confidence in the brand. Lucid to recall more than 27,000 luxury sedans over fire risk
• Negative Sentiment: Lucid is also being pressured by broader weakness in electric-vehicle stocks, with investors reacting negatively to a major finance leadership departure at Rivian and reassessing the sector’s funding and production challenges. Rivian Falls as CFO Departs for GE Vernova; Lucid Slips
• Negative Sentiment: Recent commentary continues to highlight Lucid’s cash burn, large losses, limited scale, and competition from better-funded EV makers. Those concerns overshadowed the company’s product and turnaround announcements. Lucid Group Keeps Burning Cash While Rivals Scale Production

Analyst Ratings Changes

Several equities research analysts recently weighed in on LCID shares. Robert W. Baird set a $6.00 price objective on shares of Lucid Group in a report on Wednesday, May 6th. Benchmark cut shares of Lucid Group from a “buy” rating to a “hold” rating in a research note on Wednesday, May 6th. Cantor Fitzgerald restated a “neutral” rating on shares of Lucid Group in a research report on Monday, August 3rd. Citigroup reduced their price target on shares of Lucid Group from $14.00 to $11.00 and set a “buy” rating for the company in a research note on Wednesday, August 19th. Finally, TD Cowen decreased their price objective on shares of Lucid Group from $10.00 to $7.00 and set a “hold” rating for the company in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Lucid Group currently has an average rating of “Reduce” and an average price target of $9.22.

Lucid Group Price Performance

The company has a quick ratio of 0.57, a current ratio of 1.14 and a debt-to-equity ratio of 3.00. The company has a 50 day moving average of $6.27 and a two-hundred day moving average of $7.37. The firm has a market cap of $1.97 billion, a P/E ratio of -0.37 and a beta of 0.83.

Lucid Group (NASDAQ:LCID) last issued its quarterly earnings results on Tuesday, August 4th. The company reported ($2.78) earnings per share for the quarter, missing analysts’ consensus estimates of ($2.36) by ($0.42). Lucid Group had a negative net margin of 249.21% and a negative return on equity of 1,391.51%. The business had revenue of $405.35 million during the quarter, compared to analyst estimates of $381.59 million. During the same period in the previous year, the company posted ($0.24) earnings per share. Lucid Group’s revenue was up 56.2% compared to the same quarter last year. Sell-side analysts expect that Lucid Group, Inc. will post -12.15 EPS for the current year.

Institutional Trading of Lucid Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Jain Global LLC lifted its holdings in Lucid Group by 13.3% in the 4th quarter. Jain Global LLC now owns 10,220 shares of the company’s stock worth $108,000 after purchasing an additional 1,200 shares during the last quarter. The Manufacturers Life Insurance Company grew its holdings in Lucid Group by 3.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 37,146 shares of the company’s stock valued at $393,000 after purchasing an additional 1,336 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Lucid Group by 11.8% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 13,590 shares of the company’s stock valued at $144,000 after purchasing an additional 1,430 shares during the last quarter. SBI Securities Co. Ltd. raised its position in shares of Lucid Group by 9.6% in the fourth quarter. SBI Securities Co. Ltd. now owns 17,970 shares of the company’s stock valued at $190,000 after purchasing an additional 1,569 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH raised its position in shares of Lucid Group by 16.0% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 11,645 shares of the company’s stock valued at $123,000 after purchasing an additional 1,604 shares during the period. 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.