10 Best Lidar Stocks To Buy Now

4. Luminar Technologies, Inc. (NASDAQ:LAZR)

Number of Hedge Fund Holders In Q2 2024: 8

Luminar Technologies, Inc. (NASDAQ:LAZR) was the stock that the billionaire hedge fund dumped in the intro to our piece. While its primary line of business is the automotive industry, the firm also caters to the aerospace and defense industry. Luminar Technologies, Inc. (NASDAQ:LAZR) benefits from its sizeable deal with the German auto giant Volvo, as it provides it with a stable customer with an established demand for its vehicles. However, since the firm has not announced any new deals as of late, it also means that Luminar Technologies, Inc. (NASDAQ:LAZR)’s future hinges on Volvo. Any potential delays to production and rollout, as have been the case lately, do not bode well for the firm since $455 million in operating expenses and $161 million in cash create a worrying picture for its future. In fact, Luminar Technologies, Inc. (NASDAQ:LAZR) might have to rely on share issues to raise cash, since its debt to asset ratio is 1.74. However, as of March, management expects to reach full profitability by 2025.

Luminar Technologies, Inc. (NASDAQ:LAZR)’s management commented on how it’s handling its debt and cash position during the Q2 2024 earnings call:

“Today, we’ve signed a definitive deal with our bond investors for Luminar to be able to reduce and restructure our outstanding debt, exchanging around $422 million in notes for $274 million and pushing out their maturity for 2026 to 2030.

We’ve heard feedback and know-how important this debt topic was for some investors to derisk the business, so we can realize our full upside and this is our solution. Additionally, the investor agreed to provide Luminar with $100 million of new non-dilutive debt capital. Combined, this gives us the resources and runway to be able to execute the opportunity to realize our full potential. It’s a huge vote of confidence that Luminar is not only here to stay as a cornerstone of our industry, but that we can thrive throughout the decade.”