Companies

Lucid Group (NASDAQ:LCID) Shares Gap Down - Here's Why

Published October 17, 2024

On Thursday, shares of Lucid Group, Inc. (NASDAQ:LCID) experienced a noticeable drop, gapping down as trading began. The stock, which had closed the previous day at $3.28, opened significantly lower at $2.74. As of the last trade, Lucid Group shares had rebounded slightly to $2.79, with an impressive trading volume of 61,487,759 shares.

Wall Street Analysts Forecast Growth

Amid the stock's fluctuations, analysts from various research firms have weighed in on Lucid Group's performance and future outlook. The Royal Bank of Canada recently maintained a "sector perform" rating, accompanied by a target price of $3.00 for the stock. Similarly, Needham & Company LLC reiterated a "hold" rating, as did Robert W. Baird, which set a price target of $3.00 as well. Meanwhile, Cantor Fitzgerald maintained a neutral stance with a higher price expectation of $4.00.

Currently, one analyst has issued a sell rating, while eight others have opted for hold ratings. According to data compiled from MarketBeat, the consensus rating for Lucid Group rests at "Hold" with an average price target positioned at $3.71.

Lucid Group Stock Performance

In terms of performance, Lucid Group has shown some areas of volatility. The stock's 50-day moving average is set at $3.55, with its 200-day moving average at $3.10. The company has a market capitalization of $6.39 billion and a negative price-to-earnings ratio of -2.20, exhibiting some risk in investment terms. Its beta stands at 1.04, indicating that the stock is slightly more volatile than the market.

When it comes to liquidity, Lucid maintains a robust current ratio of 3.96 and a quick ratio of 3.45, with a manageable debt-to-equity ratio of 0.59. Lucid Group’s last earnings announcement was on August 5, during which the company reported earnings per share (EPS) of ($0.29), falling short of analysts’ expectations of ($0.27) by $0.02. For the same quarter, revenue stood at $200.58 million, surpassing analyst predictions of $190.30 million. Despite these figures, Lucid reported a negative return on equity of 55.35% and a net margin of -390.39%. Year-on-year, the revenue increased 32.9%, compared to the same quarter last year when the company reported an EPS of ($0.40). Analysts forecast that Lucid Group will post an EPS of -1.28 in the current fiscal year.

Insider Buying and Selling at Lucid Group

Looking at insider trading, Senior Vice President Eric Bach sold 89,959 shares of Lucid stock on August 16, at an average price of $3.14, totaling approximately $282,471.26. After the sale, he retains ownership of 2,028,268 shares, valued around $6.37 million. Such sales can indicate confidence from insiders or uncertainty regarding the stock's future performance. Corporate insiders collectively own about 61.26% of Lucid Group's stock.

Institutional Trading of Lucid Group

Institutional investment behavior has also been noteworthy, with several large firms recently buying and selling shares in Lucid Group. For instance, Bleakley Financial Group LLC acquired a new position in the third quarter valued at roughly $49,000, while Tamar Securities LLC purchased shares worth approximately $45,000. Vontobel Holding Ltd. grew its position in Lucid by 39.6% over the quarter, bringing its total to 129,102 shares valued at $456,000. Similarly, Creative Planning increased its position by 54.3%, owning now 224,031 shares valued at $791,000. Notably, Wedmont Private Capital expanded its holdings by 128.2%, now holding 64,013 shares worth about $219,000. Overall, institutional investors hold approximately 75.17% of the company’s stock.

About Lucid Group

Lucid Group, Inc. is a technology company focused on the design, engineering, manufacturing, and sale of electric vehicles (EVs), along with EV powertrains and battery systems. The company also develops proprietary software for its vehicles. Sales are conducted through a network of retail locations and direct online avenues, including their own financial services.