![]() ![]() ![]() Now while Luminar’s technology appears well suited for mass-market self-driving cars, competition is also rising. Although lidar is seeing surging interest, driven partly by the big electric vehicle stock rally and an increasing commitment from legacy automakers to electrification and self-driving, we think investors should tread with caution with Luminar stock for a couple of reasons. Is the stock too risky at current levels? We think it is. The company has a market cap of close to $11 billion, trading at about 400x consensus 2021 revenue. Luminar Technologies (NASDAQ: LAZR), a company that specializes in lidar technology that helps self-driving vehicles detect their surroundings, went public in December and now trades at about $34 per share, almost 3.5x its offer price. Luminar: Which Lidar Stock Should You Pick? for an overview of the two companies’ valuation and fundamental performance in recent years. While Luminar’s market capitalization of about $8 billion is somewhat high, considering that the company doesn’t have a manufacturing track record, and is likely to see competition increase with the likes of Intel’s MobileEye looking to produce its own lidar sensors, the recent developments and the correction in the stock price mean that the risk to reward proposition for Luminar stock is looking a little better. While the company is expected to begin commercial deliveries next year, it expects to generate revenue of $25 million to $30 million in 2021. Luminar plans to grow this order book by over 40% this year. The company also continues to win more customers, with its forward looking order book standing at $1.3 billion at the end of last year. China is one of the largest and fastest growing EV markets, and building an early lead in the self-driving solutions space could help Luminar in the long-run. Luminar is also planning to establish an office in Shanghai to work with SAIC. LAZR stock is up 2.1% as of Tuesday afternoon but is still down 52.2% since the start of the year.Luminar is also entering the Chinese market, with SAIC, China’s largest automotive company, planning to integrate the Sentinel system to its “R Brand” vehicles. That’s a strong increase over the company’s daily average trading volume of about 4.7 million shares. As of this writing, more than 7 million shares of the company’s stock have changed hands. Of course, today’s news brings with it heavy trading of LAZR stock. ![]() Today, we’re putting our money where our mouth is by executing this significant purchase of shares as we accelerate our industry leadership.” “Given our current position and our trajectory, we think our stock price has not reflected the wins and successes we’ve had over the past year since our public debut, with substantial inefficiency in the market. Russell had the following to say about the share purchase news today. ![]() The company said in a news release this morning that the intention was to kick it off after markets opened. Luminar Technologies also mentions that its $250 million purchase plan starts today. Austin Russell, founder and CEO of Luminar Technologies, will lead this effort and the purchases will take place on the open market. In addition to this, the company revealed that some of its top executives will also be buying LAZR stock. The share repurchase is being partially funded by a proposed private financing transaction. A recent press release revealed the company’s plans to purchase at least $250 million of LAZR stock today. ![]()
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