Kinsale Capital's 15min chart shows Bollinger Bands Narrowing, Bearish Marubozu signal.

According to the 15-minute chart of Kinsale Capital, the Bollinger Bands have narrowed and a bearish Marubozu was triggered at 14:30 on September 3, 2023. This indicates a decrease in the magnitude of stock price fluctuations, suggesting that sellers are in control of the market and that bearish momentum is likely to persist.

Lucid Group Inc. (NASDAQ: LCID), a leading manufacturer of electric vehicles, has announced a 1:10 reverse stock split. The split, set to take effect on September 2, 2025, will reduce the company's outstanding shares from approximately 3.07 billion to about 307.3 million. The move aims to lift the per-share price, currently trading at a significant discount to its consensus price target of $24.28 [1].

The reverse stock split comes amid a challenging period for Lucid Group. The company reported a second-quarter result that missed analyst expectations and trimmed its 2025 production target to 18,000 to 20,000 vehicles [2]. The stock has delivered a 53.77% decline over the past year, underperforming the US Auto industry and broader US market [3]. Despite improved earnings results and a narrowed net loss, external uncertainties such as declining job vacancies and mixed index performances have contributed to the stock's underperformance.

Lucid Group's shares dropped more than 10% on Tuesday following the completion of the 1-for-10 reverse stock split, contributing to investor concerns already stoked by a reduced production forecast and bigger quarterly losses [3]. The company is aiming to soften the blow from policy changes, such as the federal $7,500 EV tax credit set to expire at the end of September, by introducing its own "Lucid Advantage Credit" [3].

The reverse stock split aims to lift Lucid's per-share price, but investors reacted cautiously due to the company's operational headwinds and reduced production targets [2]. Traders should consider volatility and the new output expectations of a company when calculating entry or hedging strategies [2].

References:
[1] https://www.investing.com/news/stock-market-news/lucid-stock-falls-after-announcing-1for10-reverse-split-93CH-4217139
[2] https://www.tradingview.com/news/gurufocus:b050a848b094b:0-why-lucid-group-lcid-shares-are-sinking-today/
[3] https://stocktwits.com/news-articles/markets/equity/why-did-lucid-s-stock-drop-more-than-10-on-tuesday/chwTSlgRdF1