The auto sector is a critical player in the consumption basket of most investors. The space has witnessed strong growth in the recent past due to rapid urbanization, rising penetration of automobiles among the middle class, and increasing penetration of hybrid and electric vehicles. However, not all auto sector stocks are created equal. While some auto sector stocks have been able to capitalize on secular tailwinds such as urbanization.
At an earlier time, investing in auto sector stocks was quite tricky. While there were many different car manufacturers, most were small or mid-cap companies that were difficult for retail investors to access directly. In addition, since each company was so unique, it was challenging for investors to find suitable opportunities and even more challenging to find diversified exposure within this segment.
The auto sector is an important one for investors. It’s one of the largest industries in the world, accounting for more than 5% of the global GDP. Moreover, car manufacturers are some of the most widely held stocks by individual investors in terms of stock market investments, largely thanks to their high visibility and popularity.
However, there are several challenges facing auto stocks at present:
There is intense pressure from regulators to reduce CO2 emission levels.
Safety concerns have led to widespread mistrust of diesel engines (although this has also been good for hybrid and electric vehicle manufacturers like Tesla).
The increasing prevalence of ride-sharing services such as Uber and Lyft has also taken a toll on traditional auto manufacturers.
Uxin Limited
In August, there was a notable reduction in the number of short positions taken on Uxin Limited (NASDAQ: UXIN). There were 4,710,000 shares borrowed as of August 15, representing a 26.3% decrease from the previous month’s total of 6,390,000 shares. Short sales accounted for 1.4% of the company’s total outstanding shares. The current short-interest ratio is 1.8 days, based on an average daily volume of 2,670,000 shares trading hands in the market. Hedge funds and institutional investors conducted recent transactions involving the stock of UXIN.
During the second quarter, Nomura Holdings Inc. purchased a new position in Uxin for a total investment of $29,000. In the fourth quarter, Pictet Asset Management S.A. opened a unique place in Uxin that cost them $65,000. During the second quarter, UBS Group AG increased its ownership of Uxin by 255,997.6%. UBS Group AG now owns 210,000 shares of the company’s stock after purchasing an additional 209,918 shares during the recent last quarter. The value of UBS Group AG’s stock holdings is $88,000. During the second quarter, Jane Street Group LLC had a 516.4% increase in the percentage of Uxin that it owned. The most recent quarter saw Jane Street Group LLC acquire an additional 180,921 shares of the firm’s stock, bringing the total number of shares directly owned by the company to 215,958, with a value of $91,000.
Last but not least, in the previous quarter of 2018, Envestnet Asset Management Inc. increased the amount it had invested in Uxin by 875.5 percent. Envestnet Asset Management Inc. now has 103,851 shares, valued at $164,000, thanks to the acquisition of 93,205 additional shares during the most recent fiscal quarter (103,851 shares). Hedge funds and other types of institutional investors hold a combined total of 96.06% of the company’s shares. On Friday, the price of a share of UXIN was $0.68 when trading began. The fifty-day moving average for the company is $0.64, and the 200-day moving average is $0.75.
The company’s market value is $267.04 million, the price-to-earnings ratio is -0.84, and the beta value is 0.91. Throughout the year, the price of Uxin might fluctuate anywhere from $0.36 to $3.68. A firm called Uxin Limited, an investment holding company is responsible for the retail sale of automobiles in China. The business provides a platform for online purchasing and selling of previously owned automobiles. In addition, it provides services for used automobiles, including pre-sales, after-sales, pre-inspection, reconditioning, storage, warranty and repair, delivery, title transfers, and vehicle registration. These services can be purchased before or after the vehicle has been sold.
Fisker Inc.
According to Bloomberg Ratings, the thirteen research firms that monitor the stock price of Fisker Inc. (NYSE: FSR) have concurred that the best course of action for investors to adopt concerning the company’s share price is to maintain their “Hold” rating. Four market experts have maintained a buy rating on the stock, while seven others have given it a hold rating. Four of the market analysts have recommended purchasing the stock.
The previous year, brokerages released a one-year price estimate with an average of $17.17 on Bloomberg Weekly from the 22nd to the 26th of August. Summary Over the past few years, there has been an explosion in the number of research professionals producing studies on the FSR stock. Barclays assigned the company an “equal weight” rating in a research note published on Thursday, May 5, and the firm lowered its target price for Fisker from $16.00 to $14.00 as a result of this change. Exane In a research note published on Thursday, August 11, 2018, by the company, BNP Paribas modified its recommendation of Fisker from “outperform” to “neutral.”
In a research note published on Friday, August 5, R. F. Lafferty decreased their target price for Fisker shares from $21.00 to $17.00 while retaining their “buy” recommendation on the firm.
NYSE: FSR had its first day of trading on Friday, and the opening price was $9. The moving average of the company’s stock price for the last 50 days is $9.26, while the moving average of its stock price over the past 200 days is $10.48. All three of the company’s liquidity ratios — the current ratio, the quick ratio, and the overall debt-to-equity ratio — total 10.52, while the overall debt-to-equity ratio is 1.09. Over the past 52 weeks, the share price of Fisker has fluctuated between $7.95 and $23.75 at various points. The firm has a price-to-earnings ratio of -5.59, a beta value of 1.08, and a market value of $2.69 billion.
In addition, the beta number indicates the firm’s volatility. Is there any chance that Tesla’s primary rival, Fisker, will stage a comeback? During the most recent period, several prominent investors have adjusted the proportion of the company’s stock that is held inside each portfolio. FIFTHDELTA Ltd. increased its ownership of Fisker stock by 68.2 percent during the first three months of 2018. After making a new acquisition of 2,317,444 shares during the most recent quarter, FIFTHDELTA Ltd now has a total of 5,714,947 shares of the company’s stock, which is currently valued at $73,723,000. This brings the total number of shares that the firm owns to a total of 5,714,947.
BNP PARIBAS ASSET MANAGEMENT Holding S.A. increased the proportion of its share held in Fisker by 74.2% during the fourth quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. now has a total of 3,142,283 shares of the company’s stock, which are currently valued at $49,428,000 following the purchase of an additional 1,338,923 shares during the past quarter. The percentage of Fisker stock that Alliancebernstein L.P. owns increased by 27.3% during the fourth quarter.
After purchasing an additional 1,321,605 shares in the last quarter, Alliancebernstein L.P. now has 6,166,486 shares of the company’s stock. The value of Alliancebernstein L.P.’s holdings in the company’s stock is worth $96,999,000. Mizuho Markets Americas LLC increased its stake in Fisker by roughly $7,357,000 during the first quarter by investing approximately that amount in purchasing new company shares. This brings the entire firm’s holding in Fisker to around $7,357,000.
Finally, but not least, Lazard Asset Management LLC increased its stake in Fisker by 199.3 percent during the second quarter. After purchasing an additional 484,986 shares during the most recent quarter, Lazard Asset Management LLC now has a total of 728,319 shares, valued at $6,241,000. To the tune of 28.77% of the company’s outstanding shares are held in ownership by investors who operate as hedge funds and other types of institutional investors. In addition to its role as a maker of electric vehicles, Fisker Inc. also plays the roles of designer, producer, marketer, lessee, and retailer. In addition, the company can compete in the automobile market despite having very minimal resources at its disposal.
White Space, Value Segment, and Conservative Premium are the primary market areas it concentrates on as its operational segments. In addition, the firm offers a technique known as Fisker flexible platform agnostic design. This method is used to build and design electric vehicles in particular size segments.
Lucid Group, Inc.
According to Bloomberg, the eight research firms following Lucid Group, Inc. (NASDAQ: LCID) have assigned the company an average rating of “Hold.” One equity research analyst recommended selling the stock. Two analysts stated that investors should maintain their current holdings, and four noted that investors should purchase the stock. The average price estimate for the next 12 months provided by the brokerage firms that published reports on the company in the prior year was 32.83. Rivian or Lucid Motors: Which Emerging Electric Vehicle (E.V.) Stock Is Better for Investors?
In a separate research note published on Thursday, August 4, Citigroup announced that it was decreasing its price objective for Lucid Group from $36.00 to $28.00. The stock holdings held by institutional investors and hedge funds have been adjusted. During the final three months of 2018, First Trust Advisors L.P. acquired a new stake in Lucid Group by purchasing about $14,982,000. During the last quarter of 2018, Raymond James Financial Services Advisors Inc. increased the percentage of Lucid Group stock owned by 25.6%. The financial services firm Raymond James Financial Services Advisors Inc. currently holds 177,401 shares of the company’s stock, which is $6,750,000.
This comes as a result of the purchase of an additional 36,150 shares during the most recent quarter. During the fourth quarter, Westpac Banking Corporation spent approximately 1,250,000 dollars to enhance its holdings in Lucid Group. During the final three months of 2018, SNS Financial Group LLC invested a total of about $229,000 towards increasing its holding in Lucid Group. And finally, during the fourth quarter, Steward Partners Investment Advisory LLC increased the percentage of Lucid Group stock owned by 20.6%.
After purchasing an additional 737 shares in the company during the most recent fiscal quarter, Steward Partners Investment Advisory LLC now owns 4,307 shares, which have a value of $164,000 (as of July 31). At the moment, institutional investors and those who invest through hedge funds own 69.37% of the company’s shares. Rivian Automotive and Lucid Group are battling for the “Best Electric Vehicle Startup.” The NASDAQ LCID started trading at 16.24 on Friday. There is a debt-to-equity ratio of 0.54, the quick ratio is 6.75, the current ratio is 7.59, and the quick ratio is 6.75.
The price range for Lucid Group over the past 52 weeks has been anything from 13.25 to 57.75. The company has a beta of 0.38 and a market value of $27.17 billion. The PE ratio for the company is -11.20. The stock currently has a simple moving average of 18.44 for its 50-day period and 20.60 for its 200-day period. On August 3, Lucid Group, Inc. (NASDAQ: LCID) released its most recent quarterly earnings report. Earnings per share (EPS) for the quarter reported by the company came in at -0.33, which was 0.11 points worse than the -0.44 projections made by market experts. During the quarter, the company’s revenue came in at 97.34 million.
For Lucid Group, the net margin and the return on equity were negative. The net margin was -1,030.53%, and the return on equity was -34.45%. According to the projections of stock research analysts, Lucid Group will have a loss of $1.08 per share for the current fiscal year. Should I Increase the Amount of Lucid Stock I Have in My Portfolio? Technologies for electric vehicles (E.V.s) is being developed by Lucid Group, Inc., a business specializing in technology and the automotive industry, which is developing technologies for electric vehicles (E.V.s).
Battery systems, electric vehicles, and electric drivetrains are some of the products that the company develops. It continued to operate twenty retail studios throughout the United States as of December 31, 2021. Lucid Group, Inc. was established in 2007, and its headquarters can be found in the city of Newark in the state of California.
