Lucid Group (NASDAQ:LCID) Shares Up 4.7% – Still a Buy?

Lucid Group, Inc. (NASDAQ:LCID) shot up 4.7% on Tuesday. The stock traded as high as $4.20 and last traded at $3.77. Approximately 29,752,615 shares traded hands during trading, an increase of 123% from the average session volume of 13,331,790 shares. The stock had previously closed at $3.60.

Lucid Group News Roundup

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

• Positive Sentiment: Lucid secured an additional $1.75 billion in liquidity through an expanded credit facility from Saudi Arabia’s Public Investment Fund, its largest shareholder. The financing supports plans for future vehicles, including a lower-priced SUV, and helped reassure investors about the company’s runway. Reuters: Lucid expands credit line from top investor
• Positive Sentiment: Quarterly cash consumption fell 30% sequentially, with Lucid pointing to cost and operating changes. Investors appear to be rewarding the improved cash discipline even though the quarterly results fell short. The Motley Fool: Why Lucid Stock Keeps Going Up
• Positive Sentiment: Lucid is expanding its service network and reported a 20% global reduction in service wait times in Q3, which could improve the ownership experience as it seeks to grow sales. Lucid expands service network
• Neutral Sentiment: The new funding is a credit facility—not simply cash without obligations—and reports flag conditions and continued reliance on the Saudi investor. That makes the added liquidity helpful, but not a substitute for achieving sustainable cash flow. Saudi Arabia Just Gave Lucid Another $1.75 Billion
• Negative Sentiment: Lucid reported a Q3 loss of $2.30 per share versus a $2.27 consensus loss, while revenue of about $350 million also missed expectations of roughly $396 million. Revenue was up year over year, but production cuts and lower deliveries underline the challenge of matching output to demand. CNBC: Lucid misses expectations and expands Saudi loan
• Negative Sentiment: Cantor Fitzgerald and Baird lowered their price targets and maintained neutral ratings, reflecting continued analyst caution after the results. Cantor Fitzgerald recommendations

Analyst Upgrades and Downgrades

Several analysts have commented on LCID shares. Citigroup lowered their price target on Lucid Group from $14.00 to $11.00 and set a “buy” rating for the company in a report on Wednesday, August 19th. Royal Bank Of Canada cut their price objective on shares of Lucid Group from $7.00 to $4.00 and set a “sector perform” rating on the stock in a report on Monday, October 12th. Weiss Ratings reissued a “sell (e+)” rating on shares of Lucid Group in a research report on Monday, September 21st. William Blair downgraded shares of Lucid Group to a “market perform” rating in a report on Monday, August 3rd. Finally, Morgan Stanley dropped their price target on shares of Lucid Group from $5.00 to $3.00 and set an “underweight” rating for the company in a research report on Thursday, October 15th. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Reduce” and an average price target of $7.33.

Lucid Group Stock Performance

The company has a market capitalization of $1.49 billion, a PE ratio of -0.28 and a beta of 0.80. The business has a fifty day moving average price of $3.83 and a 200 day moving average price of $6.69.

Lucid Group (NASDAQ:LCID) last issued its earnings results on Monday, November 9th. The company reported ($2.30) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($2.27) by ($0.03). The firm had revenue of $350.32 million for the quarter, compared to analysts’ expectations of $395.67 million. Lucid Group had a negative return on equity of 1,391.51% and a negative net margin of 249.21%. The firm’s revenue for the quarter was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($2.65) EPS. Research analysts forecast that Lucid Group, Inc. will post -12.15 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. The Manufacturers Life Insurance Company raised its holdings in Lucid Group by 6.8% during the first quarter. The Manufacturers Life Insurance Company now owns 39,666 shares of the company’s stock worth $378,000 after purchasing an additional 2,520 shares in the last quarter. EverSource Wealth Advisors LLC boosted its stake in Lucid Group by 1,574.7% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,914 shares of the company’s stock valued at $28,000 after purchasing an additional 2,740 shares in the last quarter. Voya Investment Management LLC boosted its stake in Lucid Group by 11.0% during the 3rd quarter. Voya Investment Management LLC now owns 28,127 shares of the company’s stock valued at $114,000 after purchasing an additional 2,786 shares in the last quarter. Allworth Financial LP increased its position in shares of Lucid Group by 249.9% during the 2nd quarter. Allworth Financial LP now owns 4,010 shares of the company’s stock valued at $27,000 after purchasing an additional 2,864 shares during the period. Finally, IFP Advisors Inc increased its position in shares of Lucid Group by 1,231.3% during the 2nd quarter. IFP Advisors Inc now owns 3,781 shares of the company’s stock valued at $25,000 after purchasing an additional 3,497 shares during the period. Institutional investors and hedge funds own 75.17% of the company’s stock.

About Lucid Group

Lucid Group, Inc. designs, engineers and manufactures electric vehicles and related technologies. Its lineup includes the Lucid Air luxury electric sedan and the Lucid Gravity luxury SUV, which combine electric powertrains with software and battery systems developed by the company. The company was founded in 2007 as Atieva, initially focusing on electric-vehicle battery technology, and adopted the Lucid Motors name in 2016 as it expanded into vehicle development. Lucid is headquartered in Newark, California, and manufactures vehicles in Arizona, with additional production and assembly operations in Saudi Arabia.