Lucid Group (NASDAQ:LCID) Trading 1.6% Higher - Is It Time to Buy?

Lucid Group, Inc. (NASDAQ:LCID) saw its share price increase by 1.6% during Thursday's trading session. The stock reached a peak of $2.65 before closing at $2.57. During this trading period, 23,054,287 shares changed hands, reflecting a significant drop in volume, down 44% from the average of 40,860,926 shares. In the previous session, the stock closed at $2.53.

Analysts' Ratings Overview

Various brokerages have recently shared their insights regarding Lucid Group's stock. Needham & Company LLC maintained a "hold" rating on the company’s shares in a research note issued on November 8th. On October 8th, Cantor Fitzgerald also reiterated a "neutral" stance and set a target price of $4.00 for the stock. Robert W. Baird provided a similar update with a $3.00 price target on October 7th, while the Royal Bank of Canada lowered its target from $3.00 to $2.00, rating the stock as "sector perform" in a report on November 19th. Cfra assigned a target price of $2.00 for Lucid Group on October 17th. Currently, one analyst has issued a sell rating, seven have given holds, and one has recommended a buy. According to MarketBeat, the average consensus rating for the stock remains at "Hold," with a target price averaging $3.16.

Performance Metrics

Lucid Group's current financial ratios include a current ratio of 3.71, a quick ratio of 3.26, and a debt-to-equity ratio of 0.77. The company's market capitalization stands at $7.98 billion, with a price-to-earnings ratio of -1.98 and a beta of 1.08. The stock's 50-day moving average is $2.41, while the 200-day moving average is at $2.99.

Insider Transactions

In an interesting turn of events, Public Investment Fund, a director at Lucid Group, acquired a significant number of shares—374,717,927 shares on October 30th—at an average price of $2.59 each, totaling approximately $970,519,431. Following this transaction, the director directly owns 8,041,393 shares of the company, valued at around $20,827,208. This purchase marked a remarkable increase of -102.19% in their overall stake. The acquisition was duly reported to the SEC, and it is noted that 61.26% of Lucid Group's stock is held by insiders.

Hedge Fund Activity

Several hedge funds have recently adjusted their stakes in Lucid Group. Point72 Italy S.r.l. initiated a new investment in shares of Lucid during the third quarter, valued at about $3,209,000. Main Management ETF Advisors LLC also acquired a new stake worth approximately $863,000 during the same period. Notably, Charles Schwab Investment Management Inc. raised its ownership in Lucid by 84.6% in the third quarter, now holding 5,096,667 shares worth about $17,991,000 after acquiring an additional 2,335,452 shares. CWM LLC increased its stake by 24.6% in the same quarter, owning 34,350 shares valued at $121,000 thereafter. The Manufacturers Life Insurance Company also upped its holdings by 2.5%, now owning 263,401 shares worth $930,000 after buying 6,374 additional shares. Institutional investors currently hold 75.17% of Lucid Group's stock.

Company Overview

Lucid Group, Inc. specializes in designing, engineering, manufacturing, and selling electric vehicles (EVs), powertrains, and battery systems. Additionally, the company develops proprietary software for its vehicles. The business model includes selling directly to consumers via its retail sales network as well as through direct online channels with the support of Lucid Financial Services.

Final Thoughts

Before making any investment decisions regarding Lucid Group, investors are encouraged to review current analyst ratings and market movements closely. Currently, the stock has a "Hold" rating from most analysts, leading them to recommend exploring other investment opportunities. In the meantime, information about which stocks are favored by institutional investors is available for those interested in diversifying their portfolios.

Lucid, Stock, Investment