(LVWR) LiveWire - Ratings and Ratios

LiveWire Group, Inc. is a manufacturer and seller of electric motorcycles and related products, operating globally with a presence in the United States, Austria, and other international markets. The company has two main business segments: Electric Motorcycles and STACYC, which cater to different customer needs, from electric motorcycles for adults to electric balance bikes for children. Its product portfolio includes electric motorcycles, parts, accessories, and apparel, sold through various channels such as wholesale, independent dealers, independent distributors, and directly to consumers online. As a subsidiary of Harley-Davidson, Inc., LiveWire leverages its parent companys heritage while pushing into the electric vehicle (EV) market, a rapidly growing sector. With its roots tracing back to 2010 and headquartered in Milwaukee, Wisconsin, LiveWire has positioned itself as a significant player in the EV industry.

Analyzing the markets perception of LiveWire Group, Inc. (LVWR), we observe that the stock has been subject to significant fluctuations, as indicated by its 52-week high and low of $8.73 and $1.00, respectively. The current price of $1.00, coupled with a substantial Average True Range (ATR) of 0.22 or 21.98%, suggests a high level of volatility. The short-term and long-term moving averages (SMA20 at $1.76, SMA50 at $1.97, and SMA200 at $4.58) indicate a downward trend, with the stock currently trading below all these averages, signaling potential bearish sentiment among investors.

From a fundamental standpoint, LiveWires market capitalization stands at $332.18 million, with a return on equity (RoE) of -70.38%, indicating significant losses relative to shareholder equity. The absence of P/E and forward P/E ratios further suggests that the company is not currently profitable, a common trait among growth-stage companies, particularly in the EV sector where investments are substantial and often precede profitability.

Forecasting the future performance of LVWR involves analyzing both its technical and fundamental data. Given the current price is at its 52-week low and the SMA20, SMA50, and SMA200 are significantly higher, theres potential for a rebound if the company can demonstrate positive momentum. However, the high ATR indicates that any movement, whether positive or negative, could be exaggerated. Fundamentally, the lack of profitability and significant negative RoE raise concerns about the companys ability to turn around its financial performance without substantial additional investment. If LiveWire can successfully execute its business plan, expand its market share in the EV sector, and eventually achieve profitability, the stock could see significant upside. Conversely, failure to address its current financial challenges could lead to further decline. As such, a cautious approach is warranted, with close monitoring of both technical trends and fundamental indicators.