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

Lithium Americas Corp. (TSE:LAC) shares 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 Analysts Forecast Growth

LAC has been the topic of several analyst reports. Scotiabank cut Lithium Americas from a “hold” rating to a “strong sell” rating in a research report on Monday, October 6th. National Bankshares upped their price target on Lithium Americas from C$5.00 to C$10.00 and gave the company a “sector perform” rating in a research report on Thursday, October 2nd. TD Cowen cut Lithium Americas from a “strong-buy” rating to a “hold” rating in a research report on Thursday, September 25th. Canaccord Genuity Group cut 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. Finally, Cormark cut Lithium Americas from a “moderate buy” rating to a “hold” rating in a research report on Thursday, October 2nd. One analyst has rated the stock with a Strong Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of C$8.13.

Lithium Americas Stock 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 company’s 50-day moving average is C$6.29 and its two-hundred day moving average is C$4.68. The company has a market capitalization of C$2.57 billion, a P/E ratio of -41.56 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.