Luminar Technologies (LAZR) Plunges 2.85% Amid Investigation, Downgrade

Luminar Technologies (LAZR) shares fell 2.85% today, reaching their lowest level since November 2024, with an intraday decline of 4.01%.

The strategy of buying LAZR shares after they reached a recent low and holding for one week resulted in significant underperformance. Over the past five years, the strategy yielded a return of -95.62%, compared to a benchmark return of 56.81%. The excess return was -152.43%, and the CAGR was -72.30%, indicating substantial losses. The strategy also had a high maximum drawdown of -97.74% and a Sharpe ratio of -0.79, reflecting significant risk and negative returns.

Luminar Technologies' stock price has been under significant pressure recently due to several key developments. On May 15, 2025, the company's shares dropped sharply following news of an investigation by Pomerantz Law Firm, which likely contributed to investor uncertainty and a subsequent sell-off.

Adding to the challenges, Goldman Sachs analyst Mark Delaney maintained a 'Sell' rating on Luminar Technologies and lowered the price target from $3.5 to $2. This downgrade could further dampen investor sentiment and negatively impact the stock's performance.

Another major blow to the company came when its founder, Austin Russell, abruptly exited, causing further uncertainty and volatility in the stock. The sudden departure of a key figure like Russell can often lead to a loss of investor confidence and increased market speculation.

Moreover, on June 13, 2025, the entire Lidar Technology industry, including Luminar Technologies, experienced a downturn with multiple companies reporting losses. This broader industry trend could have exacerbated the negative sentiment surrounding Luminar's stock, contributing to its recent decline.