Sign InElectric vehicle maker Lucid Group faces downside pressure amidst weak technical and fundamental factors
Summary
Electric vehicle manufacturer and technology company Lucid Group's stock had a last close of 5.73 USD on June 22, 2023, experiencing a decline of 5.29% in the last trading session and is set to resume trading on June 23, 2023; technical and fundamental indicators point towards continued downward trading in the short-term.
Company Overview
Lucid Group, Inc. (NASDAQ: LCID) is an electric vehicle (EV) manufacturer and technology company that competes with Tesla and other EV producers. The stock had a last close of 5.73 USD on June 22, 2023, and is set to resume trading on June 23, 2023.
Technical Analysis
LCID's stock price had a decline of 5.29% in the last trading session, with a low of 5.72 and a high of 6.08. The current 14-Day Relative Strength Index (RSI) of 35 indicates that the stock is approaching oversold territory. The 50-day moving average is at 7.15, while the 200-day moving average is at 9.69, with both pointing downwards, indicating a negative trend. The 3-month Moving Average Convergence Divergence (MACD) is at -0.38, providing a bearish signal.
Fundamental Analysis
Lucid operates with a market capitalization of 11.49 billion dollars and has 2.10 billion shares outstanding. The company has a negative earnings per share (EPS) of -1.51, and a price-to-earnings (PE) ratio of -3.63. The current volume of stocks traded stands at 20.50 million shares, which is lower than the average volume of 24.95 million shares.
The stock has a discounted cash flow (DCF) value of 6.51 and has a target consensus of 20.2, with a target high of 36 and a target low of 12. The target median stands at 18, indicating a potential upside for investors.
Recent News and Analyst Recommendations
Recent news articles report that LCID has hit a new 52-week low due to UBS predicting falling car prices ahead. The stock's decline may also be attributed to Lucid's lack of adopting Tesla's charging platform and possibly a strained personal relationship between Lucid's CEO, Peter Rawlinson, and Tesla's CEO, Elon Musk. Barclays Bank's downgrade of Tesla might have affected the entire EV sector, including Lucid Group, Fisker, and Canoo, as the bank expressed concerns about inelastic demand for EVs.
Predictions and Evaluation
For the next trading day, June 23, 2023, LCID's stock price may face further downside pressure due to the recent technical indicators and negative news sentiment. Given the downward trajectory, the stock price may continue within the range of 5.72 - 6.08 in the short term.
For the upcoming week, the stock may continue to trade lower, considering the weak technical and fundamental factors. As a result, the stock price may oscillate around its 50-day moving average of 7.15.
Final Evaluation: Hold
Under the current market conditions, LCID is categorized as a 'Hold.' Technical indicators, such as the RSI, suggest that the stock is near oversold territory, and there is potential for reversal. Furthermore, the target consensus of 20.2, with a target high of 36, indicates an upside opportunity. However, considering the recent negative news and weak fundamentals, investors should exercise caution and hold their positions until more positive signals emerge.
