Lordstown Motors (RIDE, $13.52) posts wider loss; reveals SEC probe
Electric truck maker Lordstown Motors posted a wider loss for the fourth quarter. It also disclosed an SEC probe following a short-seller's report.
In its first report as a public company, Lordstown reported a net loss of -$38.2 million, or -23 cents a share, widened from -$7.1 million, or 10 cents. Revenue was zero, as the company hasn’t made any vehicles yet. Cash at year-end 2020 was $630 million.
For 2021, Lordstown projects capital expenditures of $250 million to $275 million, operating expenses of $40 million to $45 million and research and development costs of $180 million to $190 million. It expects to have in year-end cash and cash equivalents at least $200 million.
“We are … so close to delivering our first beta vehicles, which we believe should solidify and spur customer demand and commitments,” Founder and Chief Executive Steve Burns said in a statement.
According to the company, it is on track for starting production of its Lordstown Endurance all-electric pickup truck in September 2021.
Last week short-seller Hindenburg Research mentioned in a repory, “Lordstown is an electric-vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.”
In a conference call with analysts, the company said it is cooperating with a SEC probe that followed the afore-mentioned report.
RIDE's Indicator enters downward trend
The Aroon Indicator for RIDE entered a downward trend on May 30, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 220 similar instances where the Aroon Indicator formed such a pattern. In of the 220 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on April 27, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on RIDE as a result. In of 58 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RIDE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 9 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Moving Average Convergence Divergence (MACD) for RIDE just turned positive on May 12, 2023. Looking at past instances where RIDE's MACD turned positive, the stock continued to rise in of 39 cases over the following month. The odds of a continued upward trend are .
RIDE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.317) is normal, around the industry mean (9.572). P/E Ratio (0.000) is within average values for comparable stocks, (95.986). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.867). RIDE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.041). P/S Ratio (131.579) is also within normal values, averaging (73.631).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. RIDE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RIDE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a blank check company, which intends to focus on a business with a real estate component
Industry MotorVehicles
RIDE and
Correlation & Price change
A.I.dvisor indicates that over the last year, RIDE has been closely correlated with WKHS. These tickers have moved in lockstep 66% of the time. This A.I.-generated data suggests there is a high statistical probability that if RIDE jumps, then WKHS could also see price increases.
| Ticker / NAME | Correlation To RIDE | 1D Price Change % | ||
|---|---|---|---|---|
| RIDE | 100% | -4.99% | ||
| WKHS - RIDE | 66% Closely correlated | +3.15% | ||
| LCID - RIDE | 53% Loosely correlated | -2.03% | ||
| FSR - RIDE | 49% Loosely correlated | +2.02% | ||
| RIVN - RIDE | 47% Loosely correlated | -1.78% | ||
| NIO - RIDE | 45% Loosely correlated | -3.77% | ||
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