Lucid Group (NASDAQ:LCID) Trading Down 2% - Should You Sell?

Lucid Group, Inc. (NASDAQ:LCID) experienced a 2% drop in its share price during trading on Tuesday. The stock hit a low of $1.99 before closing at $2.04. In total, about 45,715,866 shares were traded, which marks a significant decline of 48% compared to its average daily volume of 88,320,000 shares. The previous closing price was $2.08.

Wall Street Analysts Forecast Growth

There has been considerable discussion regarding Lucid Group among financial analysts recently. Bank of America adjusted its rating for Lucid Group from "neutral" to "underperform", significantly lowering their price target from $3.00 to $1.00 in a note published on February 26. Similarly, Stifel Nicolaus changed their price target for the stock from $3.50 to $3.00, maintaining a "hold" rating. In contrast, Cantor Fitzgerald upheld a "neutral" rating with a target price set at $3.00. Needham & Company LLC also reaffirmed a "hold" status on Lucid Group shares. Additionally, Redburn Atlantic downgraded the stock from "neutral" to "sell", reducing its target price from $3.50 to $1.13 during the same week. Currently, the consensus among analysts shows that three classify the stock as a sell, while eight maintain a hold rating, and two analysts suggest a buy. According to MarketBeat.com, the general consensus rating stands at "Hold" with a target price of $2.69.

Lucid Group Stock Market Data

The company's fifty-day moving average sits at $2.83, while the two-hundred-day moving average is recorded at $2.90. Lucid Group has a market capitalization of approximately $6.34 billion, with a price-to-earnings ratio of -1.56 and a beta value of 0.97. The financial metrics reveal a quick ratio of 3.26, a current ratio of 3.71, and a debt-to-equity ratio of 0.77, indicating reasonable short-term financial health.

Institutional Investments in Lucid Group

Recent activity among institutional investors reveals a trend of increasing holdings in Lucid Group. The Public Investment Fund enhanced its stake by 28.8% throughout the fourth quarter, now owning 1,770,888,684 shares valued at roughly $5.35 billion after acquiring an additional 396,188,386 shares. Vanguard Group Inc. also expanded its investments by 31.1%, now holding 110,318,727 shares worth about $333 million. Notably, Two Sigma Investments LP boosted its stake by an impressive 4,320.7%, controlling 15,851,907 shares valued at around $47.87 million. In terms of significant recent changes, Renaissance Technologies LLC increased its holdings by 342.7% during the same quarter, now owning 16,539,862 shares valued at about $50 million. Furthermore, Two Sigma Advisers LP entered the scene by acquiring a new position in Lucid Group worth approximately $34.12 million. Currently, institutional investors collectively own about 75.17% of the company’s stock.

About Lucid Group

Lucid Group, Inc. is a technology firm specializing in the design, engineering, manufacturing, and sale of electric vehicles (EVs), EV powertrains, and battery systems. The company is also known for developing proprietary software in-house specifically for its vehicles. Lucid Group markets its vehicles directly to consumers via both retail sales networks and direct online channels, in addition to providing Lucid Financial Services.

Considerations Before Selling or Holding

Before making a decision on whether to sell or hold Lucid Group stocks, investors should carefully assess the current market conditions, analyst recommendations, and the company’s financial health. Given the mixed ratings from analysts and significant institutional investment, it is essential to weigh the potential risks and rewards of continuing to hold or to exit the position.

Stock, Trading, Investment