Lithium Americas (TSE:LAC) Shares Pass Below 200 Day Moving Average – Time to Sell?

Shares of Lithium Americas Corp. (TSE:LAC) passed below its two hundred day moving average during trading on Tuesday . The stock has a two hundred day moving average of C$7.11 and traded as low as C$6.26. Lithium Americas shares last traded at C$6.36, with a volume of 1,150,770 shares trading hands.

Analyst Ratings Changes

A number of analysts have weighed in on the company. TD Securities upgraded Lithium Americas to a “hold” rating in a report on Monday, February 9th. National Bank Financial cut their price target on Lithium Americas from C$10.00 to C$7.50 and set a “sector perform” rating on the stock in a report on Friday, December 19th. Cormark raised Lithium Americas from a “hold” rating to a “moderate buy” rating in a research report on Friday, November 21st. Scotiabank upgraded Lithium Americas from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. Finally, Canaccord Genuity Group set a C$6.50 price objective on Lithium Americas and gave the company a “hold” rating in a research report on Wednesday, November 19th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average target price of C$7.00.

Lithium Americas Stock Performance

The business has a 50-day moving average price of C$7.04 and a 200-day moving average price of C$7.11. The firm has a market capitalization of C$1.93 billion, a price-to-earnings ratio of -5.89 and a beta of 1.26. The company has a quick ratio of 52.06, a current ratio of 3.77 and a debt-to-equity ratio of 85.22.

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. Lithium Americas plans for all three resources to be fully integrated, selling into the lithium chemical market.