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Luminar ‘Looks Like It’s Heading Under $1’ — Citron Research

Sam Boughedda
Sam Boughedda trader
Updated 9 Jan 2023

Luminar (NASDAQ: LAZR) stock tumbled more than 9% in Friday’s session, with Citron Research saying it “looks likes its heading under $1” per share in a tweet.

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YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Friday’s decline means Luminar is now down more than 75% in the last 12 months and 21% in 2023, trading at the $3.95 mark.

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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

In a tweet thread last week, Citron wrote: “$LAZR stock looks like it is heading under $1. CEO Austin Russel[l] uses every bit of jargon and double speak at CES to avoid the fact that his company will not see any meaningful revenue in near future. Does this quote give your confidence?”

The investment research firm quoted Luminar’s CEO as stating at the CES event: “I think the reality is the vast majority of the value of what we have, contracted value and everything is like in the second half of the decade.”

However, Citron criticised the reported statements, saying that Luminar’s CEO “wants investors to be patient for the ‘back half of the decade’ yet according to the LA Times Russell’s $220 million stock sale closed on July 1, 2021.”

“The very next day, on July 2nd, he closed on an $83 million Los Angeles estate,” Citron added, closing their thread with the statement that “investors should have sold their stock once they saw this guys house.

While some replies were supportive of Citron’s stance, others said the comments Citron took from Luminar’s CEO were out of context, while others noted that Citron was back to shorting after stopping during the pandemic following the GameStop and AMC Entertainment saga.

Last week Wednesday, Luminar shares rose after the company announced more commercial momentum than anticipated at the end of December following additional production wins.

Meanwhile, before the holiday period, JPMorgan analyst reduced the firm’s price target on Luminar to $16 from $30, maintaining an Overweight rating on the shares. The analyst told investors in a note that his 2023 networking and hardware outlook includes a shorter-term six-month view on recommendations.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.