TLDR:
- Lucid Group stock rose 4.6% to $2.63 on Monday, trading above its previous close of $2.51
- The company reported Q1 revenue of $235.05 million, up 36.1% year-over-year, but missed analyst expectations
- Analysts have mixed views with a consensus “Hold” rating and average price target of $2.68
- The Gravity SUV launch represents a potential growth opportunity as production scales up
- Hedge fund interest remains relatively strong with 24 funds holding positions in Q4 2024
Lucid Group’s stock experienced a notable price jump this week, catching attention from investors despite mixed analyst sentiment. The luxury electric vehicle maker saw its shares rise 4.6% during Monday’s trading session, reaching $2.63 per share.
The stock movement comes after Lucid reported its quarterly earnings on May 6th. The company posted revenue of $235.05 million for the quarter, representing a 36.1% increase compared to the same period last year.
However, this figure fell short of analyst expectations, which had projected revenue of $250.50 million.
Lucid’s earnings per share came in at -$0.24, slightly missing the consensus estimate of -$0.23.
The company continues to face profitability challenges, with a negative net margin of 406.63% and negative return on equity of 74.67%.
Financial Position and Market Performance
Despite these challenges, Lucid maintains a market capitalization of approximately $8.37 billion.
The stock has shown some volatility in recent months, with a current price that sits close to its two-hundred day moving average of $2.55.
Lucid’s financial ratios include a price-to-earnings ratio of -2.06 and a beta of 0.88, indicating lower volatility compared to the broader market.
The company’s balance sheet shows a current ratio of 3.71 and a quick ratio of 3.26, suggesting adequate liquidity for short-term obligations.
However, Lucid also carries a debt-to-equity ratio of 0.77, which investors should monitor going forward.
Analyst Perspectives
Wall Street has shown divided opinions on Lucid’s prospects, with the stock currently carrying a consensus “Hold” rating.
Among the analysts covering the stock, two have issued “buy” ratings, eight maintain “hold” ratings, and two recommend “sell.”
Cantor Fitzgerald recently reiterated a “neutral” rating with a $3.00 price target following Lucid’s earnings report.
Benchmark takes a more optimistic view, maintaining a “buy” rating and setting a price target of $5.00, suggesting potential upside from current levels.
TD Cowen initiated coverage in March with a “hold” rating and a $2.30 price target, while Morgan Stanley upgraded Lucid from “underweight” to “equal weight” with a $3.00 price target.
New Product Momentum
A potential bright spot for Lucid is the introduction of its second vehicle, the Lucid Gravity SUV.
The company began taking orders for the Gravity in November 2024, opening a new market segment beyond its flagship Air sedan.
Needham analyst Chris Pierce highlighted the Gravity’s promising start, noting it gives Lucid an opportunity to attract new customers as production scales up.
The expansion into the SUV market could help Lucid capture additional market share in the growing electric vehicle space, which represented 8.1% of U.S. auto sales in 2024.
However, Pierce also expressed concerns about Lucid’s financial health due to the capital-intensive nature of its growth plans and ongoing losses.
Institutional Interest
Institutional investors have shown continued interest in Lucid, with 24 hedge funds holding positions as of Q4 2024.
Several large investors made changes to their holdings in recent months, including GAMMA Investing LLC, which increased its position by 73.7%.
Nisa Investment Advisors LLC made a substantial move, acquiring 255,300 shares valued at approximately $771,000.
Institutional ownership currently stands at approximately 75.17% of the company’s outstanding shares, suggesting confidence from professional investors despite the stock’s challenges.
Wall Street projects that Lucid will post earnings per share of -$1.25 for the current fiscal year, as the company continues to invest in scaling production and developing new models.
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