Lucid Group (NASDAQ: LCID) Shares Decline Amid Heavy Trading Volume Drop
Lucid Group, Inc. (NASDAQ: LCID) experienced a 2% decline on Tuesday, with shares trading as low as $1.99 before closing at $2.04. This drop comes as trading volume decreased by 48% from the average daily volume, with approximately 45.7 million shares exchanged, significantly lower than the typical 88.3 million daily average.
Wall Street Analysts Lower Ratings and Price Targets
The decline in Lucid’s stock price follows a wave of analyst downgrades and price target reductions:
- Bank of America downgraded Lucid from “neutral” to “underperform,” slashing its price target from $3.00 to $1.00.
- Stifel Nicolaus reduced its price target from $3.50 to $3.00, maintaining a “hold” rating.
- Cantor Fitzgerald reaffirmed a “neutral” rating with a $3.00 target price.
- Needham & Company LLC continued its “hold” rating.
- Redburn Atlantic downgraded Lucid from “neutral” to “sell” and cut its price target from $3.50 to $1.13.
Currently, Lucid Group holds a consensus “hold” rating, with a price target of $2.69, according to MarketBeat.com. Among 13 analysts, three have issued “sell” ratings, eight have “hold” ratings, and two remain bullish with “buy” recommendations.
Key Financial Indicators and Market Performance
Lucid Group’s financial indicators reflect ongoing challenges:
- 50-day moving average: $2.83
- 200-day moving average: $2.90
- Market capitalization: $6.34 billion
- Price-to-earnings (P/E) ratio: -1.56 (negative earnings indicate losses)
- Beta: 0.97 (suggesting moderate market correlation)
- Quick ratio: 3.26 (strong short-term liquidity)
- Current ratio: 3.71 (indicating the company’s ability to cover short-term liabilities)
- Debt-to-equity ratio: 0.77 (manageable debt levels)
Institutional Investors Adjust Holdings
Despite the stock’s volatility, institutional investors remain active in Lucid Group’s shares:
- Public Investment Fund (PIF): Increased its stake by 28.8% in Q4, now owning 1.77 billion shares, valued at $5.35 billion.
- Vanguard Group Inc.: Increased holdings by 31.1%, reaching 110.3 million shares, worth $333.2 million.
- Two Sigma Investments LP: Boosted its stake by 4,320.7%, now owning 15.85 million shares, valued at $47.87 million.
- Renaissance Technologies LLC: Increased holdings by 342.7%, now controlling 16.5 million shares, worth $49.95 million.
- Two Sigma Advisers LP: Acquired a new position worth $34.1 million in Q4.
Institutional investors now hold 75.17% of Lucid’s outstanding shares, indicating ongoing institutional interest despite the recent stock downturn.
Lucid’s Market Outlook and Challenges
As Lucid Group navigates a volatile EV market, analysts remain cautious about the company’s near-term profitability. The significant stake held by institutional investors suggests confidence in the long-term potential, but downgraded ratings and reduced price targets highlight the challenges ahead. Investors will closely monitor Lucid’s next financial report and strategic moves to gauge future performance.
