Lithium Americas (TSE:LAC) Trading Down 21.6% – Should You Sell?

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

Analyst Upgrades and Downgrades

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

Lithium Americas Price Performance

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

Lithium Americas Company Profile

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.