Lucid Stock Traded Higher On Wednesday: What Happened?

Lucid Group, Inc. LCIDLCID saw its shares rise on Wednesday, buoyed by positive market sentiment on continued strength after Tesla reported stronger-than-expected second-quarter delivery numbers.

What Happened: Tesla reported second-quarter deliveries of 443,956 units this week, surpassing the consensus estimate of 439,300 and showing a 14.77% increase quarter-over-quarter. Despite a year-over-year decline of 4.76%, Tesla's performance exceeded analyst expectations, which kicked off a rally in several EV stocks.

What Else: Lucid stock has had a strong week overall. Shares began moving higher on Monday after the company announced that it reached an agreement over a trademark dispute with Gravity Inc.

Lucid said the agreement allows the company to use the "Lucid Gravity" brand without impinging on Gravity's pre-existing trademark, avoiding a dispute between the two companies. The company’s next key catalyst will be its quarterly earnings report, which is expected sometime in early August.

Is LCID A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Lucid‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Lucid does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Lucid will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

LCID Price Action: Lucid Group shares closed Wednesday up 7.27% at $2.95, according to Benzinga Pro.

See Also: Here’s Why You Should Retain Ensign Group Stock Now

Photo: Courtesy of Lucid Group.