Lucid Group, Inc. (NASDAQ: LCID) shares soared 11.7% in Tuesday’s trading session, reaching an intraday high of $2.48 before closing at $2.41. This marked a 40% spike in trading volume, with 74.3 million shares exchanged—well above the 52.9 million average daily volume. The surge came on the heels of analyst upgrades and increasing interest from institutional investors, fueling optimism around the EV maker’s recovery prospects.
⚡ Lucid Stock Gets a Boost From Analyst Upgrades
Several major equity research analysts recently revised their outlook on Lucid Group, contributing to the stock’s rally.
- Morgan Stanley upgraded LCID from an “underweight” rating to “equal weight”, assigning a $3.00 price target, signaling a more neutral stance on the stock’s future performance.
- Needham & Company LLC reaffirmed its “hold” rating on February 26, maintaining a cautious but stable outlook.
- Cantor Fitzgerald echoed the sentiment, reiterating a “neutral” rating with a $3.00 price objective in its latest research note.
- Benchmark stood out with a “buy” rating and a $5.00 price target, indicating a bullish stance on Lucid’s long-term potential.
- Cowen initiated coverage on March 6 with a “hold” rating, reflecting broader market uncertainty in the EV sector.
According to MarketBeat, Lucid Group currently holds a consensus rating of “Hold” with an average price target of $2.69, reflecting a mixed sentiment from Wall Street.
📊 Institutional Investors Increase Their Stakes
Institutional investors are upping their positions in Lucid Group, signaling potential long-term confidence in the company despite its recent struggles.
- Newbridge Financial Services Group Inc. initiated a new position in Q4 2024, investing $28,000.
- Accredited Investors Inc. and Proficio Capital Partners LLC followed suit, adding $30,000 and $31,000 worth of shares, respectively.
- DRW Securities LLC and First National Corp MA ADV also entered the fray with $31,000 and $32,000 investments.
These additions contribute to the 75.17% institutional ownership of Lucid’s outstanding shares, highlighting growing confidence among hedge funds and financial institutions.
💰 Lucid’s Financial Snapshot
Lucid Group maintains a solid liquidity position despite its recent struggles.
- The company has a quick ratio of 3.26 and a current ratio of 3.71, indicating strong short-term solvency.
- Its debt-to-equity ratio stands at 0.77, reflecting a moderate level of debt relative to shareholder equity.
- The EV maker holds a market capitalization of $7.4 billion, but its -1.82 P/E ratio underscores the company’s unprofitability amid ongoing losses.
⚙️ Lucid’s Stock Performance and Technicals
Lucid’s recent price action reflects a rebound from its previous close of $2.16, showcasing renewed investor interest.
- The stock’s 50-day simple moving average (SMA) is $2.70, slightly above the current price, indicating mild downward pressure in the short term.
- Its 200-day SMA of $2.82 suggests the stock is still trading below its long-term trend, signaling cautious optimism.
🚦 What’s Driving Lucid’s Stock Movement?
Lucid’s recent analyst upgrades and increased institutional backing have fueled a positive momentum shift. With Morgan Stanley’s upgrade and Benchmark’s bullish outlook, the stock could see further upside if Lucid continues to execute on its growth plans.
As the EV sector faces rising competition and capital challenges, Lucid Group’s liquidity, institutional backing, and analyst support could play a pivotal role in shaping its market trajectory.
