Lucid surges following 6 days of losses after headlines misidentify Cantor Fitzgerald’s lower split-adjusted price target as a good thing
It’s been a shortened week, but still a rough one for Lucid. Investor blowback to the luxury EV maker’s 1-for-10 reverse stock split has sent shares to all-time lows this week.
After Lucid’s six straight days of closing lower, Wall Street appears to have decided enough is enough and is loading up on the shares on Friday, sending them up 13% in recent trading. As of 2:10 p.m. ET, Lucid trading volumes were at more than 240% of their 30-day average.
Some of the move could be attributed to traders reading headlines that don’t take into consideration Lucid’s reverse split. Cantor Fitzgerald on Friday slapped a new price target on Lucid of $20, compared to its previous target of $3. Some news outlets (not us!) presented that as an increase. The problem: with the 1-for-10 reverse split in effect, a comparable price target would have been $30. The new $20 target is actually... a cut.
