Lucid Group (NASDAQ: LCID) continues to garner attention from analysts and investors, with recent research reports presenting a divided outlook on the electric vehicle (EV) maker. According to a report from Benzinga, Cantor Fitzgerald reaffirmed a “neutral” rating on Lucid shares while maintaining a $3.00 price target. Additionally, the firm projected a FY2025 earnings per share (EPS) estimate of ($1.03), signaling continued losses in the near term.
Analyst Sentiment on Lucid Group
The latest research indicates a mix of optimism and skepticism regarding Lucid’s stock performance. Bank of America recently downgraded Lucid from “neutral” to “underperform” and slashed its price target from $3.00 to $1.00. On the other hand, Benchmark initiated coverage with a “buy” rating and a $5.00 price target, reflecting confidence in the company’s long-term potential.
Further complicating the outlook, R.F. Lafferty upgraded Lucid from a “hold” to a “buy” rating, setting a $4.00 price target. However, Redburn Atlantic downgraded the stock to “sell” and drastically reduced its target from $3.50 to $1.13. Meanwhile, Needham & Company LLC opted to reaffirm a “hold” rating, mirroring the cautious stance taken by other firms.
According to MarketBeat.com, Lucid Group currently has a consensus rating of “Hold,” with an average price target of $2.73. The breakdown consists of three “sell” ratings, six “hold” ratings, and two “buy” ratings, highlighting uncertainty in the company’s growth trajectory.
Stock Performance and Market Trends
Lucid Group’s stock has faced downward pressure in recent months. On Wednesday, shares declined by 0.4%, closing at $2.22. Trading volume stood at 135.86 million shares, significantly above the average volume of 87.22 million shares. Over the past year, the stock has fluctuated between a low of $1.93 and a high of $4.43.
Technical indicators present a challenging picture for Lucid investors. The stock’s 50-day moving average stands at $2.96, while its 200-day moving average remains at the same level, suggesting a lack of upward momentum. Lucid’s market capitalization currently sits at $6.69 billion, with a negative price-to-earnings (P/E) ratio of -1.66 and a beta of 0.93.
Institutional Investment Activity
Institutional investors continue to play a significant role in Lucid Group’s ownership structure. The Saudi Public Investment Fund (PIF), Lucid’s largest shareholder, increased its stake by 28.8% in Q4 2024, acquiring an additional 396.19 million shares. The fund now owns a staggering 1.77 billion shares, valued at approximately $5.35 billion.
Other major institutional investors have also adjusted their holdings:
- Vanguard Group Inc. increased its stake by 31.1%, bringing its total holdings to 110.32 million shares, valued at $333.16 million.
- Geode Capital Management LLC boosted its stake by 31.4%, now holding 20.26 million shares worth $61.21 million.
- Renaissance Technologies LLC saw a dramatic 342.7% increase in its holdings, now owning 16.54 million shares valued at $49.95 million.
- Two Sigma Investments LP recorded an impressive 4,320.7% increase, raising its stake to 15.85 million shares, worth approximately $47.87 million.
Overall, 75.17% of Lucid Group’s stock is owned by institutional investors, underscoring its significance in the investment landscape.
What Lies Ahead for Lucid?
Lucid Group remains a highly debated stock in the EV sector. While some analysts see promise in its premium EV offerings and strong backing from the Saudi PIF, others remain skeptical due to ongoing financial losses and price target downgrades. Investors will be closely watching Lucid’s future earnings reports and production milestones to assess whether the company can navigate its current challenges and drive sustainable growth.
