TLDR
- Lucid Group’s stock rose 2.7% in recent trading, reaching $2.49 per share
- The company is strengthening its AI strategy under new leadership
- Morgan Stanley upgraded LCID to Equal Weight from Underweight with a $3 price target
- The company is exploring strategic alliances and AI integration in the automotive sector
- Analysts have mixed views with an average rating of “Hold” and price target of $2.69
Market Performance
Lucid Group’s stock recently gained attention when shares jumped 2.7% during trading. The electric vehicle manufacturer saw its stock trade as high as $2.51 before settling at $2.49.
This performance came amid declining trading volume. Only 20.8 million shares changed hands during the session.
This represented a substantial drop of 62% from the average session volume of 54.4 million shares. The stock had previously closed at $2.42 before the uptick.
Lucid Group currently has a market capitalization of approximately $7.34 billion. The company’s financial metrics show a price-to-earnings ratio of -1.81 and a beta of 0.97.
Liquidity indicators reveal a quick ratio of 3.26 and a current ratio of 3.71. The luxury EV maker also carries a debt-to-equity ratio of 0.77.
Strategic Direction
Under new leadership, Lucid is pivoting toward artificial intelligence as a core component of its business strategy. The company designs and develops proprietary software in-house for its vehicles.
Lucid remains focused on developing software-defined vehicle (SDV) architecture. This focus comes amid the growing trend of AI-enabled autonomy in the automotive sector.
The company is actively exploring strategic alliances that could expand its influence in both the EV and AI industries. This strategic shift appears to be gaining traction with some Wall Street analysts.
Analyst Perspectives
On March 18, Morgan Stanley upgraded Lucid’s stock to Equal Weight from Underweight. The firm set a $3 price target for the shares.
This upgrade reflects expectations that Lucid can achieve a higher valuation under its new leadership. The bank specifically cited the company’s pursuit of an artificial intelligence strategy as a positive factor.
Overall, analyst sentiment remains mixed on Lucid’s prospects. Two equity research analysts have rated the stock with a sell rating.
Nine analysts have issued a hold rating on the shares. Only two analysts currently recommend buying the stock.
According to MarketBeat, this gives Lucid Group an average rating of “Hold.” The average price target stands at $2.69 per share.
Cantor Fitzgerald maintained a “neutral” rating with a $3.00 target price in late February. Benchmark reaffirmed a “buy” rating with a $5.00 price target in early March.
Cowen initiated coverage with a “hold” rating around the same time.
Institutional Interest
Lucid has attracted attention from institutional investors in recent months. Several large investors have either initiated or adjusted their positions in the stock.
Pine Valley Investments increased its stake by 27.8% in the third quarter of last year. BI Asset Management boosted its holdings by 43.8% in the fourth quarter.
Sei Investments raised its stake by adding 4,431 shares in the fourth quarter. Voya Investment Management held 120,067 shares worth approximately $363,000.
Alpine Global Management increased its position by 7.4% in the fourth quarter. Institutional investors now own approximately 75.17% of Lucid’s stock.
This level of institutional ownership suggests professional investors see potential value despite the current challenges. The company’s stock has been trading in a relatively narrow range over recent months.
The 200-day moving average stands at $2.77, while the stock has averaged $2.64 over the last 30 days.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
