Lithium Americas (Argentina) (NYSE:LAR) Trading Down 7.4% - Here's Why

Key Points

• Lithium Americas (Argentina) shares fell 7.4% during Thursday trading, hitting an intraday low of $6.66 and closing well below the prior day’s $7.18. Trading volume was also far below average, suggesting lighter-than-normal investor activity.
• Analyst sentiment is mixed, with recent rating changes ranging from a sell at Weiss Ratings to buy/outperform calls from Scotiabank and TD Securities. The stock’s consensus rating remains Moderate Buy, with a target price of $8.13.
• The company recently missed earnings expectations, reporting $0.05 EPS versus the $0.12 consensus estimate in its latest quarterly results. Despite that miss, institutional ownership remains significant, with hedge funds and other investors holding about 49.17% of shares.

Lithium Americas (Argentina) Corp. (NYSE:LAR - Get Free Report) fell 7.4% during mid-day trading on Thursday . The company traded as low as $6.66 and last traded at $6.6510. Approximately 319,375 shares were traded during trading, a decline of 89% from the average daily volume of 2,961,316 shares. The stock had previously closed at $7.18.

Wall Street Analyst Weigh In

A number of research analysts recently commented on LAR shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Lithium Americas (Argentina) in a report on Thursday, July 2nd. Scotiabank upped their price target on Lithium Americas (Argentina) from $8.50 to $11.00 and gave the company a "sector outperform" rating in a research note on Friday, May 15th. TD Securities increased their price target on Lithium Americas (Argentina) from $7.00 to $9.00 and gave the stock a "buy" rating in a report on Tuesday, March 24th. Zacks Research downgraded Lithium Americas (Argentina) from a "hold" rating to a "strong sell" rating in a research report on Tuesday. Finally, Wall Street Zen upgraded shares of Lithium Americas (Argentina) from a "sell" rating to a "hold" rating in a report on Saturday, March 28th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $8.13.

Lithium Americas (Argentina) Trading Down 9.7%

The business has a fifty day moving average of $9.11 and a 200 day moving average of $8.04. The company has a market capitalization of $1.06 billion and a PE ratio of -17.07.

Lithium Americas (Argentina) (NYSE:LAR - Get Free Report) last issued its quarterly earnings results on Tuesday, May 12th. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.12 by ($0.07). Equities analysts forecast that Lithium Americas will post 0.28 EPS for the current fiscal year.

Hedge Funds Weigh In On Lithium Americas (Argentina)

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. JPMorgan Chase & Co. purchased a new position in Lithium Americas (Argentina) in the second quarter valued at $37,000. BNP Paribas Financial Markets grew its position in shares of Lithium Americas (Argentina) by 45.3% during the third quarter. BNP Paribas Financial Markets now owns 11,388 shares of the company's stock worth $38,000 after buying an additional 3,552 shares in the last quarter. TD Waterhouse Canada Inc. increased its stake in shares of Lithium Americas (Argentina) by 538.8% during the fourth quarter. TD Waterhouse Canada Inc. now owns 6,995 shares of the company's stock worth $39,000 after buying an additional 5,900 shares during the period. Diversify Advisory Services LLC purchased a new stake in shares of Lithium Americas (Argentina) during the second quarter worth approximately $40,000. Finally, Raymond James Financial Inc. raised its holdings in Lithium Americas (Argentina) by 14.1% in the second quarter. Raymond James Financial Inc. now owns 26,030 shares of the company's stock valued at $54,000 after acquiring an additional 3,214 shares in the last quarter. Hedge funds and other institutional investors own 49.17% of the company's stock.

About Lithium Americas (Argentina)

Lithium Americas (Argentina) is a subsidiary of Lithium Americas Corp. focused on the exploration, development and production of lithium brine resources in the Jujuy province of northwest Argentina. The company’s principal asset is the Cauchari-Olaroz project, situated within the Lithium Triangle, one of the world’s richest regions for lithium-bearing brines. Through its Argentine operations, Lithium Americas aims to supply battery-grade lithium carbonate critical to electric vehicle and energy-storage markets.

The Cauchari-Olaroz project encompasses concessions on the Salar de Cauchari and Salar de Olaroz salt flats, where detailed drilling programs and pilot‐scale evaporation ponds have demonstrated favorable lithium concentrations.

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