Lithium Americas (TSE:LAC) Stock Price Down 21.6% – Time to Sell?

Lithium Americas Corp. (TSE:LAC)’s stock price was down 21.6% during mid-day trading on Friday . The stock traded as low as C$10.29 and last traded at C$10.39. Approximately 4,766,525 shares changed 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 Analyst Weigh In

LAC has been the subject of a number of recent analyst reports. Canaccord Genuity Group downgraded shares of Lithium Americas from a “moderate buy” rating to a “sell” rating and set a C$6.25 price target for the company. in a research report on Thursday, October 2nd. National Bankshares raised their price target on shares of 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. Scotiabank cut Lithium Americas from a “hold” rating to a “strong sell” rating in a research note on Monday, October 6th. TD Cowen cut Lithium Americas from a “strong-buy” rating to a “hold” rating in a research note on Thursday, September 25th. Finally, Cormark cut Lithium Americas from a “moderate buy” rating to a “hold” rating in a research note on Thursday, October 2nd. One research analyst has rated the stock with a Strong Buy rating, six have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Lithium Americas has an average rating of “Hold” and an average price target of C$8.13.

Lithium Americas Trading Down 8.3%

The business’s 50 day moving average is C$6.40 and its two-hundred day moving average is C$4.72. The company has a quick ratio of 52.06, a current ratio of 13.88 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of C$2.36 billion, a P/E 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.