Lithium Americas (TSE:LAC) Hits New 12-Month Low – What’s Next?

Lithium Americas Corp. (TSE:LAC) hit a new 52-week low on Friday. The company traded as low as C$2.78 and last traded at C$2.79, with a volume of 797,370 shares changing hands. The stock had previously closed at C$2.99.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on LAC shares. National Bank Financial dropped their price target on Lithium Americas from C$6.25 to C$5.25 and set a “sector perform” rating on the stock in a research report on Monday, October 19th. Canaccord Genuity Group upgraded Lithium Americas from a “hold” rating to a “moderate buy” rating and cut their price target for the company from C$7.00 to C$5.25 in a research note on Thursday, October 15th. Three research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Lithium Americas presently has an average rating of “Hold” and a consensus target price of C$7.17.

Lithium Americas Price Performance

The firm’s 50-day moving average price is C$3.71 and its two-hundred day moving average price is C$5.49. The stock has a market cap of C$1.03 billion, a PE ratio of -6.15 and a beta of 3.45. The company has a current ratio of 5.47, a quick ratio of 52.06 and a debt-to-equity ratio of 81.68.

Lithium Americas (TSE:LAC) last released its quarterly earnings results on Thursday, August 13th. The company reported C($0.03) EPS for the quarter. Lithium Americas had a negative return on equity of 8.92% and a net margin of 1,429,488,235.29%. On average, equities analysts expect that Lithium Americas Corp. will post 1.38 earnings per share for the current fiscal year.

Lithium Americas Company Profile

Lithium Americas is building Thacker Pass located in Humboldt County in northern Nevada. Phase 1 is designed for nominal production capacity of 40,000 tonnes per year of battery-quality lithium carbonate, and mechanical completion is targeted for late 2027. Thacker Pass hosts the largest known measured lithium resource (Measured and Indicated) in the world and is owned by a JV between Lithium Americas (holding a 62% interest), and GM (holding a 38% interest). Project financing for Phase 1 includes a $2.23 billion loan from the U.S.