Lithium Americas (TSE:LAC) Stock Price Passes Below Two Hundred Day Moving Average – Time to Sell?

Lithium Americas Corp. (TSE:LAC)’s stock price passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$7.17 and traded as low as C$5.87. Lithium Americas shares last traded at C$5.87, with a volume of 1,593,461 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on LAC. Canaccord Genuity Group set a C$6.50 price target on Lithium Americas and gave the stock a “hold” rating in a report on Wednesday, November 19th. Cormark upgraded Lithium Americas from a “hold” rating to a “moderate buy” rating in a research report on Friday, November 21st. National Bank Financial decreased their target price on Lithium Americas from C$10.00 to C$7.50 and set a “sector perform” rating on the stock in a research report on Friday, December 19th. Finally, TD Securities raised shares of Lithium Americas to a “hold” rating in a research note on Monday, February 9th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of C$7.00.

Lithium Americas Price Performance

The stock has a 50 day moving average price of C$6.95 and a 200-day moving average price of C$7.17. The company has a debt-to-equity ratio of 85.22, a current ratio of 3.77 and a quick ratio of 52.06. The stock has a market capitalization of C$1.78 billion, a price-to-earnings ratio of -5.44 and a beta of 1.26.

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.