LCID share: Why are investors closely monitoring Lucid Motors before 19 January?

MY NUMBER 1 RECOMMENDATION TO CREATE FULL TIME INCOME ONLINE: CLICK HERE

Shares of Lucid (NASDAQ:LCID) are higher by more than 10% in 2022 so far, which has exceeded the criterion S&P 500 decline by more than 2% with a healthy margin. However, it should be noted that January 19 is a major catalyst for LCID shareholders. And unfortunately, the catalyst is not exactly a positive event.

Source: T. Schneider / Shutterstock.com

Event? The blockade for existing Lucida shareholders expires on 19 January. According to a filing submitted to the U.S. Securities and Exchange Commission (SEC), existing or old Lucid shareholders hold 1.19 billion LCID shares. This is important because existing shareholders make up the majority of Lucid’s ownership; 1.6 billion LCID shares are currently in circulation. As a result, shareholders should anticipate that January 19 will be an extremely volatile day.

LCID Stock: Lockup expires on January 19th

The Saudi Public Investment Fund (PIF) is the largest abandoned shareholder Lucid stocks. Saudi PIF owns 67.2% of LCID shares, so investors are wondering if the fund intends to sell its shares on January 19 or later. However, PIF is a long-term shareholder, so the fund is unlikely to sell a significant portion of its investment.

The last blockade for Lucid took place on September 1, 2021. On that day, private equity investors (PIPE) were allowed to sell their shares. Accordingly, stock LCID fell by almost 11%. Worse, Lucid fell more than 20% a week before the September PIPE lock expired.

January 12th is one week before the upcoming expiration date. Since 12 January, LCID shares have fallen by more than 7%. However, the January 19 expiration may represent a potential purchase opportunity. One month after the end of September, Lucid traded more than 35% higher than the closing price. Today, the stock is trading more than 135% above the September 1 closing price.

However, investors should know something else. V amended application 13G received Jan. 7, PIPE shareholder Magnetar Financial sold 16.8 million shares Lucid or 94% of its position. Magnetar is a Illinois-based hedge fund that manages more $ 25 billion in discretionary assets under management (AUM).

Magnetar was Lucid’s first supporter and invested $ 250 million v electric vehicle (EV) as early as 2017. In addition, Magnetar once bought an additional 10 million LCID shares as a PIPE investor for $ 15 per share. Following a recent sale, Magnetar now owns just over a million LCID shares.

At the date of publication, Eddie Pan did not have (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.

MY NUMBER 1 RECOMMENDATION TO CREATE FULL TIME INCOME ONLINE: CLICK HERE

Leave a Comment

error: Content is protected !!