Lithium Americas (TSE:LAC) Shares Down 21.6% – What’s Next?

Lithium Americas Corp. (TSE:LAC)’s stock price was down 21.6% on Friday . The company traded as low as C$10.29 and last traded at C$10.39. Approximately 4,766,525 shares traded hands during mid-day trading, an increase of 375% from the average daily volume of 1,002,767 shares. The stock had previously closed at C$13.26.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on LAC shares. Canaccord Genuity Group lowered Lithium Americas from a “moderate buy” rating to a “sell” rating and set a C$6.25 target price for the company. in a research note on Thursday, October 2nd. Cormark lowered Lithium Americas from a “moderate buy” rating to a “hold” rating in a research note on Thursday, October 2nd. Scotiabank lowered Lithium Americas from a “hold” rating to a “strong sell” rating in a research note on Monday, October 6th. TD Cowen lowered Lithium Americas from a “strong-buy” rating to a “hold” rating in a research note on Thursday, September 25th. Finally, National Bankshares lifted their price objective on Lithium Americas from C$5.00 to C$10.00 and gave the stock a “sector perform” rating in a research report on Thursday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, Lithium Americas presently has a consensus rating of “Hold” and an average price target of C$8.13.

Lithium Americas Stock Performance

The stock has a 50-day moving average of C$6.40 and a 200 day moving average of C$4.72. The company has a debt-to-equity ratio of 0.65, a current ratio of 13.88 and a quick ratio of 52.06. The stock has a market capitalization of C$2.36 billion, a price-to-earnings ratio of -38.12 and a beta of 1.26.

About Lithium Americas

Lithium Americas is developing three lithium production assets, two brine resources located in northwestern Argentina and a clay resource in Nevada, U.S. While the company has no current lithium production, we expect the first Argentina resource, Cauchari-Olaroz, to enter production in late 2022. We expect the Nevada project, Thacker Pass, to enter production in the middle of the 2020s and the second brine resource, Pastos Grandes, to enter production in the late-2020s.