RIDE Rocked by Major C-Suite Overhaul

The stock has been in selloff mode for the better part of 2021

Deputy Editor
Jun 14, 2021 at 9:51 AM
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The shares of Lordstown Motors Corp (NASDAQ:RIDE) are off 15.9% at $9.60 this morning, plummeting after the electric pick-up truck company's CEO Steve Burns and CFO Julia Rodriguez both announced their resignations. Lordstown Motors is looking to transition into the commercial production phase, away from research and development, and the resignations will be effective immediately. The firm is working toward filling the positions, while lead independent director Angela Strand will serve as executive chairwoman, and Beck Roof will serve as the Interim CFO. 

RIDE rallied into 2021 before succumbing to pressure near the $30 level. Since then, it's been mostly downhill, with the security bottoming out at a record low of $6.69 on May 11. While it has been able to distance itself from that level in June, the 100-day moving average rejected RIDE's last attempt to rally. Year-to-date, the stock is down over 43%. 

Analyst sentiment has been far from optimistic. Of the five covering the stock, only one considers it a "strong buy," while the remaining four call it a "hold" or worse. Plus, the 12-month consensus price target of $9 is a 4.8% discount to last night's close. 

Short interest has also been on the rise, adding 10.3% in the last two reporting periods. The 34.53 million shares sold short make up 31.1% of the stock's available float, or nearly three days to cover at its average daily pace of trading. 

 

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