Lucid Group Inc. (NASDAQ: LCID) shares soared by 11.7% on Tuesday, with the stock reaching an intraday high of $2.48 before closing at $2.41. The EV maker’s trading volume spiked by 40% above its average daily volume, with 74.27 million shares changing hands, compared to the typical 52.9 million shares. This surge comes as analyst ratings and institutional moves continue to shape market sentiment around the stock.
Lucid Group’s Institutional Investors Ramp Up Holdings
Institutional investors significantly increased their Lucid Group holdings during Q4 2024, signaling renewed confidence in the company’s potential despite recent challenges:
Public Investment Fund (PIF) expanded its position by 28.8%, adding 396.2 million shares. The Saudi-backed fund now holds a whopping 1.77 billion shares, valued at approximately $5.35 billion, making it Lucid’s largest stakeholder.
Vanguard Group Inc. grew its stake by 31.1%, acquiring 26.17 million shares for a total of 110.3 million shares, valued at $333 million.
Two Sigma Investments LP increased its holdings by a massive 4,320.7%, buying 15.49 million shares to reach 15.85 million shares, worth $47.9 million.
Renaissance Technologies LLC also made a bold move, increasing its position by 342.7%, adding 12.8 million shares to hold a total of 16.5 million shares valued at $49.9 million.
Two Sigma Advisers LP bought a new stake in Lucid Group, valued at $34.1 million.
Institutional ownership now accounts for 75.17% of Lucid’s outstanding shares, highlighting the strong backing from major financial players.
Wall Street Analysts Issue Mixed Ratings on Lucid Group
Analysts remain divided on Lucid’s stock, with a mix of buy, hold, and sell ratings creating uncertainty:
- Benchmark maintained a “buy” rating with a $5.00 price target, indicating significant upside potential.
- Bank of America downgraded Lucid to “underperform”, slashing its price target from $3.00 to $1.00, citing growth concerns.
- Morgan Stanley upgraded Lucid from “underweight” to “equal weight”, with a $3.00 price target, offering a more neutral outlook.
- Redburn Atlantic downgraded Lucid to “sell”, reducing its target price from $3.50 to $1.13, signaling bearish sentiment.
- Cowen initiated coverage with a “hold” rating, showing caution around the stock’s near-term prospects.
Overall, MarketBeat data shows Lucid Group holds a “Hold” consensus rating with an average price target of $2.69.
Lucid’s Financials and Price Action
Lucid Group’s market cap now stands at $7.33 billion, with the stock displaying a P/E ratio of -1.80 and a beta of 0.97.
- Quick ratio: 3.26
- Current ratio: 3.71
- Debt-to-equity ratio: 0.77
- 50-day moving average: $2.72
- 200-day moving average: $2.83
The recent stock movement indicates heavy buying interest, but with Lucid trading below its 50-day and 200-day moving averages, the stock is still facing bearish technical pressure.
Lucid Group’s Outlook: EV Market Volatility and Institutional Backing
With PIF’s increased stake and Wall Street’s mixed ratings, Lucid Group remains a highly-watched EV player. The company’s next moves, including production targets and market expansion, will be crucial in determining its stock trajectory.
