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

Lithium Americas Corp. (TSE:LAC) was down 21.6% during 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 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 Analysts Forecast Growth

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

Lithium Americas Stock Performance

The stock’s 50-day moving average price is C$6.29 and its 200-day moving average price is C$4.68. 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 company has a market capitalization of C$2.57 billion, a P/E ratio of -41.56 and a beta of 1.26.

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.