Lithium Americas (TSE:LAC) Share Price Passes Below 200-Day Moving Average – Time to Sell?

Lithium Americas Corp. (TSE:LAC) passed below its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of C$6.66 and traded as low as C$6.38. Lithium Americas shares last traded at C$6.61, with a volume of 2,146,591 shares.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on LAC. Scotiabank raised shares of Lithium Americas from a “strong sell” rating to a “hold” rating in a report on Thursday, November 13th. National Bankshares cut their target price on shares of Lithium Americas from C$10.00 to C$7.50 and set a “sector perform” rating for the company in a research report on Friday, December 19th. Cormark raised Lithium Americas from a “hold” rating to a “moderate buy” rating in a research note on Friday, November 21st. Finally, Canaccord Genuity Group set a C$6.50 price objective on Lithium Americas and gave the company a “hold” rating in a report on Wednesday, November 19th. One 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 data from MarketBeat.com, Lithium Americas has a consensus rating of “Hold” and a consensus price target of C$7.00.

Lithium Americas Price Performance

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’s fifty day moving average price is C$7.27 and its 200-day moving average price is C$6.66. The stock has a market cap of C$2.01 billion, a P/E ratio of -6.12 and a beta of 1.26.

Insider Activity at Lithium Americas

In related news, insider Richard Gerspacher sold 6,118 shares of the stock in a transaction dated Friday, November 14th. The shares were sold at an average price of C$6.33, for a total value of C$38,726.94. Following the completion of the transaction, the insider directly owned 84,443 shares of the company’s stock, valued at C$534,524.19. This represents a 6.76% decrease in their ownership of the stock. Also, insider Edward Grandy sold 6,183 shares of the stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of C$6.33, for a total value of C$39,138.39. Following the completion of the transaction, the insider directly owned 135,466 shares of the company’s stock, valued at C$857,499.78. This represents a 4.37% decrease in their position. Insiders have sold a total of 21,827 shares of company stock valued at $138,165 over the last quarter. Company insiders own 7.40% of the company’s stock.

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.