Why Luminar's Stock Is Plummeting Today
On a morning when the S&P 500 was inching higher, Luminar Technologies (NASDAQ: LAZR) moved swiftly in the opposite direction. Investors were paring their positions in response to a downgrade of the lidar company's stock and a new price target that implies significant downside.
As of 11:59 a.m. ET Wednesday, shares of Luminar were down 11.7%, recovering somewhat from an earlier decline of 15.8%.
Concerned with the company's margins, Goldman Sachs downgraded Luminar's stock to sell from neutral, and reduced its price target on the shares to $5. Based on Luminar's closing price on Tuesday of $7.80, that new price target implies a downside of about 36%. Goldman Sachs initiated coverage on Luminar's stock in February 2022 with a neutral rating and a price target of $14.
Source Fool.com
