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

Lithium Americas Corp. (TSE:LAC) dropped 21.6% on Friday . The stock traded as low as C$10.29 and last traded at C$10.39. Approximately 4,766,525 shares were traded during 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 several recent analyst reports. Scotiabank cut Lithium Americas from a “hold” rating to a “strong sell” rating in a research note on Monday, October 6th. National Bankshares upped their target price on Lithium Americas from C$5.00 to C$10.00 and gave the stock a “sector perform” rating in a research note 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 target price for the company. in a research note on Thursday, October 2nd. 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 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’s stock. According to MarketBeat.com, Lithium Americas presently has a consensus rating of “Hold” and an average target price of C$8.13.

Lithium Americas Stock Down 8.3%

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

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.