Lucid Group (NASDAQ:LCID) Shares Down 2.8% – Time to Sell?

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

Key Headlines 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 Analyst Weigh In

LCID has been the topic of a number of research analyst reports. Weiss Ratings reiterated a “sell (e+)” rating on shares of Lucid Group in a research note on Wednesday, June 24th. Citigroup reissued a “buy” rating and set a $14.00 target price (down from $17.00) on shares of Lucid Group in a research report on Friday, May 15th. Morgan Stanley set a $5.00 price target on shares of Lucid Group in a report on Wednesday, May 6th. Evercore set a $6.00 price target on Lucid Group in a research report on Monday, May 11th. Finally, TD Cowen dropped their price objective on Lucid Group from $10.00 to $7.00 and set a “hold” rating on the stock 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. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average price target of $9.67.

Lucid Group Stock Down 2.8%

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

Institutional Trading of Lucid Group

A number of hedge funds have recently bought and sold shares of LCID. EverSource Wealth Advisors LLC increased its holdings in Lucid Group by 1,574.7% during 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 in the last quarter. Brown Advisory Inc. raised its position in Lucid Group by 47.5% in the 2nd quarter. Brown Advisory Inc. now owns 15,530 shares of the company’s stock valued at $33,000 after purchasing an additional 5,000 shares during the last quarter. Jump Financial LLC acquired a new position in Lucid Group in the second quarter worth $41,000. Worldquant Millennium Advisors LLC acquired a new position in Lucid Group in the second quarter worth $59,000. Finally, Leonteq Securities AG bought a new stake in shares of Lucid Group during the fourth quarter worth $67,000. 75.17% of the stock is owned by institutional investors.

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.