Lucid Group (NASDAQ:LCID) Shares Down 4.8% After Analyst Downgrade

Lucid Group, Inc. (NASDAQ:LCID)’s stock price fell 4.8% during mid-day trading on Tuesday after Royal Bank Of Canada lowered their price target on the stock from $10.00 to $8.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Lucid Group traded as low as $8.68 and last traded at $8.80. 32,057,761 shares traded hands during trading, an increase of 327% from the average session volume of 7,511,360 shares. The stock had previously closed at $9.24.

A number of other research analysts have also recently issued reports on LCID. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Lucid Group in a research note on Friday, March 27th. Benchmark reaffirmed a “buy” rating on shares of Lucid Group in a research note on Thursday, February 19th. Cantor Fitzgerald cut their target price on Lucid Group from $21.00 to $14.00 and set a “neutral” rating on the stock in a research note on Wednesday, February 25th. Zacks Research raised Lucid Group from a “strong sell” rating to a “hold” rating in a research note on Thursday, March 5th. Finally, Robert W. Baird set a $14.00 target price on Lucid Group in a research note on Tuesday, January 6th. Two equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Lucid Group has a consensus rating of “Reduce” and a consensus price target of $12.86.

Trending Headlines about Lucid Group

Here are the key news stories impacting Lucid Group this week:

• Positive Sentiment: Appointed Silvio Napoli as CEO, an experienced industrial executive brought in to accelerate production, cost control and commercial scaling. Lucid names auto industry outsider as CEO, expands Uber deal
• Positive Sentiment: Expanded partnership with Uber and secured material new investment commitments (Uber + PIF affiliate) and an enlarged robotaxi commitment (at least 35,000 vehicles), which support long‑term revenue pathways. Lucid to Receive New Investments from the PIF and Uber
• Positive Sentiment: Company says total financing package now roughly $1.05B (including $300M public offering), which materially extends runway versus prior expectations. Lucid Secures $750 Million in New Funding, Names New CEO
• Neutral Sentiment: Operational backdrop: Q1 production/delivery update showed 5,500 produced and 3,093 delivered; the company flagged a temporary supply disruption — a mixed signal for revenue ramp but not the primary driver of today’s move. Lucid Group (LCID) Reports Q1 Deliveries Impacted by Temporary Supply Disruption
• Negative Sentiment: Priced a $300M registered common‑stock offering (36,057,692 shares at ~$8.11 per the prospectus) — investors reacted to immediate dilution and potential share overhang. Lucid prices $300M stock offer as part of $1.05B capital raise
• Negative Sentiment: Financing structure includes $550M of convertible preferred to a PIF affiliate and $200M private placement to an Uber subsidiary plus a new S‑3 shelf — strengthens liquidity but increases conversion/dilution risk and creates an overhang. Lucid (LCID) slides as investors weigh fresh capital raise against dilution and share overhang
• Negative Sentiment: Legal risk: Pomerantz LLP launched an investor investigation into Lucid, which can increase uncertainty and selling pressure. Pomerantz investigates claims on behalf of investors of Lucid
• Negative Sentiment: Analyst/target pressure: recent target cuts and ‘reduce’ consensus add to near‑term negative sentiment. RBC cuts LCID price target to $8

Hedge Funds Weigh In On Lucid Group

Several large investors have recently made changes to their positions in LCID. Royal Bank of Canada lifted its holdings in shares of Lucid Group by 9.5% during the first quarter. Royal Bank of Canada now owns 110,716 shares of the company’s stock valued at $267,000 after purchasing an additional 9,578 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Lucid Group by 89.9% during the first quarter. AQR Capital Management LLC now owns 537,801 shares of the company’s stock valued at $1,226,000 after purchasing an additional 254,551 shares during the last quarter. NewEdge Advisors LLC lifted its holdings in shares of Lucid Group by 103.2% during the first quarter. NewEdge Advisors LLC now owns 37,987 shares of the company’s stock valued at $92,000 after purchasing an additional 19,294 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in shares of Lucid Group by 112.0% during the first quarter. Goldman Sachs Group Inc. now owns 5,440,620 shares of the company’s stock valued at $13,166,000 after purchasing an additional 2,874,603 shares during the last quarter. Finally, Empowered Funds LLC lifted its holdings in shares of Lucid Group by 11.3% during the first quarter. Empowered Funds LLC now owns 110,844 shares of the company’s stock valued at $268,000 after purchasing an additional 11,252 shares during the last quarter. 75.17% of the stock is currently owned by hedge funds and other institutional investors.

Lucid Group Stock Down 4.8%

The company’s fifty day moving average price is $9.91 and its 200-day moving average price is $13.05. The stock has a market capitalization of $2.88 billion, a PE ratio of -0.73 and a beta of 1.16. The company has a quick ratio of 0.83, a current ratio of 1.25 and a debt-to-equity ratio of 3.00.

About Lucid Group

Lucid Group, Inc is a California-based electric vehicle manufacturer specializing in the design, engineering and production of luxury electric sedans. Its flagship model, the Lucid Air, features a proprietary battery and powertrain architecture that emphasizes energy efficiency, extended driving range and high performance. In addition to passenger vehicles, Lucid offers charging solutions and software-enabled services aimed at optimizing the ownership experience and accelerating adoption of zero-emission transportation.

The company was founded in 2007 under the name Atieva, initially focusing on battery technology and electric powertrains for other automakers before transitioning to its own branded vehicles.