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

Lithium Americas Corp. (TSE:LAC)’s stock price fell 21.6% on Friday . The company traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares were traded during mid-day trading, an increase of 375% from the average session volume of 1,002,767 shares. The stock had previously closed at C$13.26.

Analysts Set New Price Targets

A number of brokerages recently weighed in on LAC. Cormark downgraded shares of Lithium Americas from a “moderate buy” rating to a “hold” rating in a report on Thursday, October 2nd. TD Cowen downgraded shares of Lithium Americas from a “strong-buy” rating to a “hold” rating in a report on Thursday, September 25th. 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 report on Thursday, October 2nd. Scotiabank downgraded shares of Lithium Americas from a “hold” rating to a “strong sell” rating in a report on Monday, October 6th. Finally, National Bankshares boosted their price target on shares of Lithium Americas from C$5.00 to C$10.00 and gave the stock a “sector perform” rating in a report on Thursday, October 2nd. One investment 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 company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of C$8.13.

Lithium Americas Stock Performance

The firm has a market capitalization of C$2.57 billion, a PE ratio of -41.56 and a beta of 1.26. The company has a debt-to-equity ratio of 0.65, a current ratio of 13.88 and a quick ratio of 52.06. The company’s fifty day simple moving average is C$6.29 and its 200 day simple moving average is C$4.68.

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.