Lucid Group (NASDAQ:LCID) Stock Price Up 8.6% – Should You Buy?

Shares of Lucid Group, Inc. (NASDAQ:LCID) were up 8.6% during mid-day trading on Thursday . The company traded as high as $6.87 and last traded at $6.46. 45,324,773 shares were traded during mid-day trading, an increase of 226% from the average daily volume of 13,903,753 shares. The stock had previously closed at $5.95.

More Lucid Group News

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

• Positive Sentiment: Shares are rising after CEO Silvio Napoli forcefully pushed back on reports that Lucid was considering Chapter 11 bankruptcy or a take-private deal, saying the claims were “completely false” and “so far from the facts.” Investors appear to be buying back in as the denial eases some panic-selling pressure. Article Title
• Positive Sentiment: The stock is also getting support from commentary that Lucid still has enough liquidity to operate for a while, which helped fuel a second-day recovery after the steep selloff. Article Title
• Neutral Sentiment: Multiple law firms have announced or reminded investors about a securities class action tied to Lucid’s alleged concealment of a 29-day delivery halt, with a lead-plaintiff deadline of July 28. These notices add legal overhang, but they do not by themselves change fundamentals today. Article Title
• Neutral Sentiment: Coverage also notes that the recent rally comes after an extreme intraday collapse earlier in the week, so trading remains highly speculative and sentiment-driven. Article Title
• Negative Sentiment: The class-action lawsuits and investor alerts highlight allegations that Lucid misled shareholders about operational problems, which could weigh on the stock if legal risks grow. Article Title
• Negative Sentiment: Even with the rebound, analysts and commentators continue to flag dilution, debt, and weak underlying business performance as longer-term risks for LCID. Article Title

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on the company. Benchmark cut Lucid Group from a “buy” rating to a “hold” rating in a report on Wednesday, May 6th. Evercore set a $6.00 target price on shares of Lucid Group in a research note on Monday, May 11th. Weiss Ratings restated a “sell (e+)” rating on shares of Lucid Group in a report on Wednesday, June 24th. Citigroup reiterated a “buy” rating and set a $14.00 price target (down from $17.00) on shares of Lucid Group in a report on Friday, May 15th. Finally, Robert W. Baird set a $6.00 price objective on shares of Lucid Group in a research note on Wednesday, May 6th. One analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $9.56.

Lucid Group Trading Up 8.6%

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 stock has a market capitalization of $2.52 billion, a price-to-earnings ratio of -0.49 and a beta of 0.83. The business has a 50 day simple moving average of $5.76 and a 200-day simple moving average of $8.32.

Institutional Trading of Lucid Group

A number of institutional investors and hedge funds have recently made changes to their positions in LCID. EverSource Wealth Advisors LLC boosted its holdings in Lucid Group by 1,574.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company’s stock valued at $28,000 after acquiring an additional 2,740 shares during the last quarter. Leonteq Securities AG purchased a new position in shares of Lucid Group in the 4th quarter worth about $67,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Lucid Group in the 4th quarter valued at about $77,000. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Lucid Group during the 4th quarter worth about $86,000. Finally, HITE Hedge Asset Management LLC acquired a new stake in Lucid Group during the 3rd quarter worth approximately $212,000. 75.17% of the stock is currently owned by institutional investors and hedge funds.

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.