Shares of Lucid Group, Inc. (NASDAQ: LCID) inched up 0.7% during mid-day trading on Monday, with the stock trading as high as $2.25 before settling at $2.17. The session saw approximately 33.9 million shares exchanged, marking a 61% decline from its average daily trading volume of 87.2 million shares. The stock had previously closed at $2.15.
Analyst Ratings Signal Uncertainty for Lucid
Several analysts have recently weighed in on Lucid’s outlook, with mixed reviews shaping investor sentiment. Cantor Fitzgerald reaffirmed a “neutral” rating and maintained a $3.00 price target on February 26. However, some firms have grown increasingly bearish on the stock.
- Royal Bank of Canada lowered its price target from $3.00 to $2.00, citing a “sector perform” rating in a report from November 19.
- Redburn Atlantic took an even more pessimistic stance, downgrading Lucid from “neutral” to “sell” while slashing its price target from $3.50 to $1.13 on February 24.
- TD Cowen initiated coverage on March 7, assigning a “hold” rating with a $2.30 price objective.
- Needham & Company LLC reaffirmed a “hold” rating on February 26.
Overall, Lucid Group holds an average analyst rating of “Hold,” with three analysts issuing “sell” ratings, eight giving “hold” ratings, and two maintaining “buy” ratings. MarketBeat.com reports an average price target of $2.69.
Lucid’s Stock Performance Amid Market Volatility
Despite recent challenges, Lucid continues to attract institutional interest. The stock has a market capitalization of $6.34 billion, with a price-to-earnings (P/E) ratio of -1.56 and a beta of 0.97. Its 50-day moving average stands at $2.81, while the 200-day moving average sits slightly higher at $2.89.
Institutional Investors and Hedge Funds Adjust Positions
Institutional investors and hedge funds have recently modified their holdings in Lucid Group:
- Axim Planning & Wealth acquired a new position in Q3 valued at $48,000.
- Caprock Group LLC increased its stake by 7.4%, now holding 189,961 shares worth $671,000.
- Charles Schwab Investment Management Inc. expanded its position by 84.6%, acquiring 2.3 million additional shares to bring its total to 5.1 million shares valued at $18 million.
- The Manufacturers Life Insurance Company raised its holdings by 2.5% to 263,401 shares worth $930,000.
- FMR LLC boosted its stake by 47.5%, increasing its total holdings to 149,987 shares valued at $529,000.
Currently, 75.17% of Lucid’s stock is owned by institutional investors and hedge funds, signaling continued interest despite the company’s volatile price action.
With analysts lowering expectations and institutions adjusting their positions, Lucid’s stock remains at a critical juncture. Investors will be closely watching upcoming developments to determine whether the EV maker can regain momentum in an increasingly competitive sector.
