Lucid Group, Inc. (NASDAQ: LCID) continues to struggle in

the stock market as its share price dipped by 0.7% on Wednesday, trading as low as $2.09 before closing at the same level. This decline comes as trading volume plummeted by 66%, with 29.6 million shares changing hands compared to the average daily volume of 86.4 million.

Analyst Ratings: Bearish Sentiment Weighs on LCID

Several analysts have revised their ratings and price targets for Lucid Group, reflecting a cautious stance on the electric vehicle (EV) maker’s outlook.

• Stifel Nicolaus reduced its price target from $3.50 to $3.00, maintaining a “Hold” rating.
• Cantor Fitzgerald reiterated a “Neutral” rating, with a $3.00 price target.
• Royal Bank of Canada (RBC) cut its target price from $3.00 to $2.00, assigning a “Sector Perform” rating.
• Benchmark maintained a “Buy” rating, setting an optimistic $5.00 price target.
• Redburn Atlantic took a more bearish stance, downgrading Lucid to a “Sell” rating while slashing its price target from $3.50 to $1.13.

Overall, three analysts have issued a Sell rating, seven rate it as Hold, and two have Buy recommendations. MarketBeat data suggests an average price target of $2.69, indicating uncertainty regarding Lucid’s ability to rebound.

Lucid’s Stock Performance: A Slippery Slope

Lucid Group’s financials paint a challenging picture:

• Debt-to-equity ratio: 0.77, signaling moderate leverage.
• Current ratio: 3.71, suggesting strong short-term liquidity.
• Quick ratio: 3.26, reinforcing its ability to cover immediate obligations.
• Market capitalization: $6.48 billion.
• Price-to-earnings (P/E) ratio: -1.60, reflecting negative earnings.
• Beta: 0.97, indicating stock volatility in line with the broader market.

Lucid’s 50-day moving average sits at $2.87, while its 200-day moving average is $2.93, showing a consistent downtrend.

Institutional Investors Adjust Holdings

Institutional activity in Lucid Group remains dynamic, with several new investments and position adjustments:

• Newbridge Financial Services Group Inc. acquired a new stake in Q4 worth $28,000.
• Accredited Investors Inc. initiated a new position valued at $30,000.
• Proficio Capital Partners LLC entered Lucid’s stock with an investment of $31,000.
• DRW Securities LLC and First National Corp MA ADV also made small-scale investments of $31,000 and $32,000, respectively.

Despite its struggles, Lucid Group still holds institutional investor confidence, with 75.17% of its stock owned by hedge funds and large investors.

Lucid Group’s Business Overview

Lucid Group is a technology-driven EV company that designs, engineers, and manufactures electric vehicles, EV powertrains, and battery systems. The company also develops proprietary software for its vehicles and operates a direct-to-consumer sales model through its retail network and online platform, including Lucid Financial Services.

As the EV market faces competitive headwinds and economic pressures, Lucid’s ability to scale production, manage costs, and secure new financing will be critical to its long-term success. Investors will be closely watching how Lucid navigates these challenges in the coming months.