Lithium Americas (TSE:LAC) Hits New 52-Week Low – Here’s Why

Lithium Americas Corp. (TSE:LAC) shares reached a new 52-week low during mid-day trading on Thursday. The company traded as low as C$2.55 and last traded at C$2.57, with a volume of 474,515 shares changing hands. The stock had previously closed at C$2.73.

Analysts Set New Price Targets

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

Lithium Americas Price Performance

The company has a debt-to-equity ratio of 81.68, a quick ratio of 52.06 and a current ratio of 5.47. The firm has a market capitalization of C$922.13 million, a P/E ratio of -5.52 and a beta of 3.45. The company has a 50-day moving average price of C$3.61 and a 200-day moving average price of C$5.40.

Lithium Americas (TSE:LAC) last posted its earnings results on Thursday, August 13th. The company reported C($0.03) earnings per share (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, sell-side analysts predict that Lithium Americas Corp. will post 1.38 earnings per share for the current year.

About Lithium Americas

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.