Lucid Group Stock Dips Following Disappointing Earnings Report

Lucid Group, Inc. (NASDAQ:LCID), a rising player in the electric vehicle industry, experienced a notable drop in its stock price in the pre-market trading session on Thursday as a result of a disappointing earnings report. The company's shares, which previously closed at $3.70, faced a downward gap, opening at $3.41 and later trading at $3.31. A total of 7,727,517 shares were exchanged during the trading session.

The earnings per share (EPS) reported by Lucid Group for the quarter was ($0.29), failing to meet the consensus estimate of ($0.28) by just ($0.01). Revenue-wise, the company brought in $157.20 million, falling short of the expected $179.88 million. Lucid's financial health appears stressed with a negative return on equity of 58.91% and a negative net margin of 380.45%. A comparison to the previous year's same quarter shows a significant revenue drop of 39.0%, although the previous year's EPS was a larger loss of ($0.40).

Analyst Insights and Price Targets

A number of analysts have recently shared their views on Lucid Group's stock. Stifel Nicolaus initiated coverage with a “hold” rating and a price target of $5.00, while Bank of America revised their price target from $7.00 to $4.50, maintaining a “neutral” stance. R. F. Lafferty downgraded the stock from “buy” to “hold” and cut their price target to $5.00 from $10.00. Similarly, Needham & Company shifted their recommendation from “buy” to “hold,” and Robert W. Baird reduced their price target from $6.00 to $4.00, also issuing a “neutral” rating. Aggregate rating data from MarketBeat.com indicates an average rating of “Hold” with a consensus target price of $5.00 for the stock.

Recent Institutional Investor Activity

Institutional investors and hedge funds have been actively adjusting their holdings in Lucid Group. Significant moves include 1832 Asset Management L.P. starting a new position valued at $25,000 and First Manhattan Co. increasing its stake by 666.7%, now owning shares worth $29,000. Moreover, Quent Capital LLC and Itau Unibanco Holding S.A. significantly raised their investments, while Psagot Value Holdings Ltd. Israel bolstered its Lucid shares by 84.0%.

Overview of Lucid Group’s Stock

The company is navigating with a debt-to-equity ratio of 0.38 and liquidity metrics at a relatively healthy state, with a quick ratio of 4.42 and a current ratio of 5.19. The stock's 50-day and two-hundred-day moving averages are $3.59 and $4.61 respectively. With a market capitalization of $7.05 billion, the stock is trading with a PE ratio of -2.22 and has a beta of 1.07, pointing to its high volatility relative to the market.

About Lucid Group

Founded in 2007 and headquartered in Newark, California, Lucid Group, Inc is an enterprise at the intersection of technology and automotive sectors, focusing on developing electric vehicles, powertrains, and battery systems. Also known as a subsidiary of Ayar Third Investment Company, Lucid aims to redefine sustainable transportation through its innovative approach to electric vehicle (EV) technology.

Lucid, Stock, Earnings