Lucid Group (NASDAQ:LCID) Trading Down 2% - Should You Sell?

Lucid Group, Inc. (NASDAQ:LCID) witnessed a 2% decline in its share price during trading on Tuesday, with the stock reaching a low of $1.99 and a final trading price of $2.04. The trading volume for the day was approximately 45,715,866 shares, a significant drop of 48% compared to its average daily volume of 88,320,000 shares. The stock had previously closed at $2.08.

Wall Street Analysts Forecast Growth

Lucid Group has garnered attention from a number of research firms lately. Bank of America downgraded Lucid Group from a "neutral" rating to an "underperform" rating, adjusting their target price from $3.00 to $1.00 in a note released on February 26. Similarly, Stifel Nicolaus reduced their price target from $3.50 to $3.00 and issued a "hold" rating on February 27. Cantor Fitzgerald maintained a "neutral" rating but set the target price at $3.00 in their report. Needham & Company LLC reaffirmed a "hold" rating on the stock during the same period. Moreover, Redburn Atlantic downgraded the stock from a "neutral" rating to a "sell" rating, decreasing the price target from $3.50 to $1.13 as of February 24. Currently, three research analysts have assigned a sell rating to Lucid, while eight have given it a hold rating and two have issued a buy rating. According to MarketBeat.com, Lucid now has a consensus rating of "Hold" with a target price of $2.69.

Lucid Group Stock Performance

The company's fifty-day moving average stands at $2.83 and the two-hundred-day moving average is $2.90. Lucid Group has a market capitalization of $6.34 billion, a negative price-to-earnings ratio of -1.56, and a beta of 0.97. Additionally, the firm boasts a quick ratio of 3.26 and a current ratio of 3.71, along with a debt-to-equity ratio of 0.77.

Institutional Trading Activity

Recently, significant changes have occurred in the holdings of large investors regarding Lucid Group. For instance, the Public Investment Fund increased their stake in Lucid by 28.8% during the fourth quarter, acquiring an additional 396,188,386 shares for a total hold of 1,770,888,684 shares worth approximately $5.35 billion. Vanguard Group Inc. also raised its holdings in Lucid by 31.1%, obtaining an additional 26,172,852 shares to bring their total to 110,318,727 shares, valued at about $333 million. Furthermore, Two Sigma Investments LP upped their stake by an impressive 4,320.7%, acquiring an additional 15,493,320 shares, bringing their total ownership to 15,851,907 shares worth $47.87 million. Renaissance Technologies LLC increased its holdings by 342.7%, with 16,539,862 shares now in their possession after purchasing an additional 12,803,987 shares. Additionally, Two Sigma Advisers LP entered a new position in Lucid Group valued at around $34.12 million. Overall, hedge funds and institutional investors control approximately 75.17% of Lucid's stock.

About Lucid Group

Lucid Group, Inc. is a technology company that specializes in designing, engineering, manufacturing, and selling electric vehicles (EVs), EV powertrains, and battery systems. It develops proprietary software for its vehicles in-house and sells directly to consumers through its retail network and online platforms, including Lucid Financial Services.

Conclusion

As investors consider their options regarding Lucid Group, it’s clear that the stock is experiencing fluctuations that warrant careful assessment. With varied analyst opinions and significant institutional investment activity, potential shareholders should weigh these factors before making a decision.

Lucid, Stocks, Analysis