Lucid Group (NASDAQ:LCID) Shares Climb 4.7% – Here’s Why

Lucid Group, Inc. (NASDAQ:LCID)’s stock price rose 4.7% during mid-day trading on Tuesday. The company traded as high as $4.20 and last traded at $3.77. 29,752,615 shares changed hands during trading, an increase of 123% from the average daily volume of 13,331,790 shares. The stock had previously closed at $3.60.

More Lucid Group News

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

• Positive Sentiment: Lucid secured an additional $1.75 billion in liquidity through an expanded credit facility from Saudi Arabia’s Public Investment Fund, its largest shareholder. The financing supports plans for future vehicles, including a lower-priced SUV, and helped reassure investors about the company’s runway. Reuters: Lucid expands credit line from top investor
• Positive Sentiment: Quarterly cash consumption fell 30% sequentially, with Lucid pointing to cost and operating changes. Investors appear to be rewarding the improved cash discipline even though the quarterly results fell short. The Motley Fool: Why Lucid Stock Keeps Going Up
• Positive Sentiment: Lucid is expanding its service network and reported a 20% global reduction in service wait times in Q3, which could improve the ownership experience as it seeks to grow sales. Lucid expands service network
• Neutral Sentiment: The new funding is a credit facility—not simply cash without obligations—and reports flag conditions and continued reliance on the Saudi investor. That makes the added liquidity helpful, but not a substitute for achieving sustainable cash flow. Saudi Arabia Just Gave Lucid Another $1.75 Billion
• Negative Sentiment: Lucid reported a Q3 loss of $2.30 per share versus a $2.27 consensus loss, while revenue of about $350 million also missed expectations of roughly $396 million. Revenue was up year over year, but production cuts and lower deliveries underline the challenge of matching output to demand. CNBC: Lucid misses expectations and expands Saudi loan
• Negative Sentiment: Cantor Fitzgerald and Baird lowered their price targets and maintained neutral ratings, reflecting continued analyst caution after the results. Cantor Fitzgerald recommendations

Analysts Set New Price Targets

LCID has been the subject of a number of research analyst reports. Citigroup cut their price target on shares of Lucid Group from $14.00 to $11.00 and set a “buy” rating for the company in a report on Wednesday, August 19th. Morgan Stanley lowered their price objective on shares of Lucid Group from $5.00 to $3.00 and set an “underweight” rating on the stock in a research note on Thursday, October 15th. Royal Bank Of Canada dropped their target price on shares of Lucid Group from $7.00 to $4.00 and set a “sector perform” rating on the stock in a report on Monday, October 12th. Robert W. Baird cut their target price on shares of Lucid Group from $6.00 to $5.00 and set a “neutral” rating for the company in a research note on Tuesday. Finally, UBS Group restated a “hold” rating on shares of Lucid Group in a report on Tuesday, October 6th. One research analyst has rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $7.33.

Lucid Group Trading Up 4.7%

The stock has a fifty day moving average of $3.83 and a 200-day moving average of $6.69. The firm has a market capitalization of $1.49 billion, a price-to-earnings ratio of -0.28 and a beta of 0.80.

Lucid Group (NASDAQ:LCID) last announced its earnings results on Monday, November 9th. The company reported ($2.30) EPS for the quarter, missing the consensus estimate of ($2.27) by ($0.03). Lucid Group had a negative net margin of 249.21% and a negative return on equity of 1,391.51%. The company had revenue of $350.32 million for the quarter, compared to analysts’ expectations of $395.67 million. During the same period in the prior year, the company earned ($2.65) earnings per share. The company’s revenue for the quarter was up 4.1% on a year-over-year basis. As a group, equities research analysts forecast that Lucid Group, Inc. will post -12.15 earnings per share for the current fiscal year.

Institutional Trading of Lucid Group

A number of hedge funds have recently bought and sold shares of LCID. EverSource Wealth Advisors LLC increased its position in shares of Lucid Group by 1,574.7% in the first quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company’s stock worth $28,000 after acquiring an additional 2,740 shares in the last quarter. IFP Advisors Inc boosted its stake in Lucid Group by 1,231.3% in the 2nd quarter. IFP Advisors Inc now owns 3,781 shares of the company’s stock worth $25,000 after purchasing an additional 3,497 shares during the period. Allworth Financial LP grew its position in Lucid Group by 249.9% during the 2nd quarter. Allworth Financial LP now owns 4,010 shares of the company’s stock worth $27,000 after purchasing an additional 2,864 shares in the last quarter. Nykredit A S purchased a new position in Lucid Group during the 2nd quarter worth approximately $47,000. Finally, Meeder Advisory Services Inc. acquired a new stake in Lucid Group during the 1st quarter valued at $98,000. 75.17% of the stock is owned by hedge funds and other institutional investors.

About Lucid Group

Lucid Group, Inc. designs, engineers and manufactures electric vehicles and related technologies. Its lineup includes the Lucid Air luxury electric sedan and the Lucid Gravity luxury SUV, which combine electric powertrains with software and battery systems developed by the company. The company was founded in 2007 as Atieva, initially focusing on electric-vehicle battery technology, and adopted the Lucid Motors name in 2016 as it expanded into vehicle development. Lucid is headquartered in Newark, California, and manufactures vehicles in Arizona, with additional production and assembly operations in Saudi Arabia.