TLDR
- Lucid Group stock dropped 3.6% after Stifel cut price target from $3.00 to $2.10
- Q2 earnings missed estimates with $0.28 per share loss versus analyst forecasts
- Revenue grew 29.3% year-over-year but fell short of $288.10 million expectations
- 1-for-10 reverse stock split takes effect September 2nd for Nasdaq compliance
- Stock down 34.65% year-to-date with multiple analyst downgrades
Lucid Group shares fell 3.6% Friday after Stifel Nicolaus slashed its price target on the electric vehicle maker. The firm cut its target from $3.00 to $2.10 while maintaining a hold rating.
The stock traded as low as $1.99 before closing at $2.00. Trading volume reached 41.1 million shares, down 64% from the average session volume.
Earnings Disappoint Wall Street
The latest downgrade follows disappointing second-quarter results. Lucid reported a loss of $0.28 per share, missing analyst estimates by $0.08.
Revenue climbed 29.3% year-over-year to $259.43 million. However, this fell short of the $288.10 million consensus forecast.
Gross profit and adjusted EBITDA figures both missed expectations. These shortfalls raised concerns about the company’s cost efficiency and production outlook.
Analyst Stephen Gengaro cited ongoing challenges in cost structure and reduced production forecasts. The EV maker continues to struggle with profitability as it ramps up manufacturing.
Reverse Split Approved
Shareholders will see a 1-for-10 reverse stock split take effect Tuesday. The company announced this move August 21st to maintain Nasdaq listing requirements.
Every 10 shares will convert to one share under the split. The adjustment occurred after Friday’s market close.
Despite poor performance, institutional investors remain active. Two Sigma Investments increased holdings by 4,320.7% in Q4, now owning 15.85 million shares worth $47.87 million.
Marshall Wace boosted its stake by 2,398.5% in Q2. The firm holds 12.65 million shares valued at $26.70 million.
Analyst Outlook Remains Weak
Multiple firms have downgraded Lucid this year. Redburn Atlantic cut shares from neutral to sell in February, dropping its target from $35.00 to $11.30.
Bank of America downgraded from neutral to underperform, slashing its target from $30.00 to $10.00.
Currently, two analysts rate the stock a buy, eight assign hold ratings, and two issue sell recommendations. The consensus price target sits at $26.75.
The company maintains a $6.08 billion market cap with institutional investors holding 75.17% of shares. Analysts expect full-year losses of 1.25 earnings per share.
