Lucid Group (NASDAQ:LCID) Shares Up 8.6% – Here’s Why

Lucid Group, Inc. (NASDAQ:LCID)’s share price shot up 8.6% during mid-day trading on Thursday . The stock traded as high as $6.87 and last traded at $6.46. Approximately 45,324,773 shares changed hands during mid-day trading, an increase of 226% from the average session volume of 13,903,753 shares. The stock had previously closed at $5.95.

Lucid Group News Summary

Here are the key news stories impacting Lucid Group this week:

• Positive Sentiment: Shares are rising after CEO Silvio Napoli forcefully pushed back on reports that Lucid was considering Chapter 11 bankruptcy or a take-private deal, saying the claims were “completely false” and “so far from the facts.” Investors appear to be buying back in as the denial eases some panic-selling pressure. Article Title
• Positive Sentiment: The stock is also getting support from commentary that Lucid still has enough liquidity to operate for a while, which helped fuel a second-day recovery after the steep selloff. Article Title
• Neutral Sentiment: Multiple law firms have announced or reminded investors about a securities class action tied to Lucid’s alleged concealment of a 29-day delivery halt, with a lead-plaintiff deadline of July 28. These notices add legal overhang, but they do not by themselves change fundamentals today. Article Title
• Neutral Sentiment: Coverage also notes that the recent rally comes after an extreme intraday collapse earlier in the week, so trading remains highly speculative and sentiment-driven. Article Title
• Negative Sentiment: The class-action lawsuits and investor alerts highlight allegations that Lucid misled shareholders about operational problems, which could weigh on the stock if legal risks grow. Article Title
• Negative Sentiment: Even with the rebound, analysts and commentators continue to flag dilution, debt, and weak underlying business performance as longer-term risks for LCID. Article Title

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Evercore set a $6.00 price target on Lucid Group in a report on Monday, May 11th. Robert W. Baird set a $6.00 target price on Lucid Group in a research note on Wednesday, May 6th. Royal Bank Of Canada reissued a “sector perform” rating and set a $7.00 price target (down from $8.00) on shares of Lucid Group in a research report on Monday. Benchmark downgraded shares of Lucid Group from a “buy” rating to a “hold” rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of Lucid Group in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Reduce” and a consensus price target of $9.56.

Lucid Group Stock Performance

The firm has a market cap of $2.52 billion, a price-to-earnings ratio of -0.49 and a beta of 0.83. The company has a quick ratio of 0.48, a current ratio of 1.02 and a debt-to-equity ratio of 3.00. The company has a 50 day moving average of $5.76 and a 200 day moving average of $8.32.

Institutional Trading of Lucid Group

A number of hedge funds have recently made changes to their positions in the stock. Handelsbanken Fonder AB increased its stake in shares of Lucid Group by 81.9% in the second quarter. Handelsbanken Fonder AB now owns 73,729 shares of the company’s stock worth $493,000 after buying an additional 33,200 shares during the last quarter. CX Institutional grew its holdings in Lucid Group by 69.6% during the 2nd quarter. CX Institutional now owns 13,207 shares of the company’s stock worth $88,000 after acquiring an additional 5,422 shares in the last quarter. Verus Capital Partners LLC bought a new stake in shares of Lucid Group in the 1st quarter worth about $108,000. Essential Partners LLC acquired a new stake in shares of Lucid Group in the 1st quarter valued at about $126,000. Finally, J. Derek Lewis & Associates Inc. lifted its position in shares of Lucid Group by 32.8% during the first quarter. J. Derek Lewis & Associates Inc. now owns 19,820 shares of the company’s stock worth $189,000 after purchasing an additional 4,896 shares during the last quarter. Institutional investors and hedge funds own 75.17% of the company’s stock.

About Lucid Group

Lucid Group, Inc is a California-based electric vehicle manufacturer specializing in the design, engineering and production of luxury electric sedans. Its flagship model, the Lucid Air, features a proprietary battery and powertrain architecture that emphasizes energy efficiency, extended driving range and high performance. In addition to passenger vehicles, Lucid offers charging solutions and software-enabled services aimed at optimizing the ownership experience and accelerating adoption of zero-emission transportation.

The company was founded in 2007 under the name Atieva, initially focusing on battery technology and electric powertrains for other automakers before transitioning to its own branded vehicles.