Lithium Americas (NYSE:LAC) Cut to Strong Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lithium Americas (NYSE:LAC) from a "sell" to a "strong sell", marking a notable negative rating change for the stock.
• The company reported a significant quarterly EPS miss of ($0.37) vs. ($0.04) expected and faces a negative EPS outlook, while the consensus analyst price target and the stock's recent open both sit at about $5.71.
• Despite mixed analyst views, several institutional investors have materially increased positions (notably VanEck, Millennium and Legal & General), signaling notable institutional buying activity.

Lithium Americas (NYSE:LAC - Get Free Report) was downgraded by Wall Street Zen from a "sell" rating to a "strong sell" rating in a research report issued on Saturday.

Several other research analysts also recently commented on LAC. Wedbush started coverage on Lithium Americas in a research note on Monday, April 20th. They issued a "neutral" rating and a $8.00 price objective on the stock. Jefferies Financial Group reaffirmed a "buy" rating on shares of Lithium Americas in a research note on Monday, February 23rd. TD Securities raised Lithium Americas to a "hold" rating in a research note on Monday, February 9th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lithium Americas in a research note on Monday. Finally, Scotiabank decreased their price objective on Lithium Americas from $7.00 to $5.00 and set a "sector perform" rating on the stock in a research note on Monday, April 6th. Two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Lithium Americas presently has an average rating of "Hold" and a consensus price target of $5.71.

Lithium Americas Stock Down 0.4%

NYSE LAC opened at $5.71 on Friday. The stock's 50-day moving average price is $4.50 and its 200-day moving average price is $5.08. The company has a quick ratio of 5.16, a current ratio of 5.16 and a debt-to-equity ratio of 0.50. Lithium Americas has a 52 week low of $2.47 and a 52 week high of $10.52. The company has a market capitalization of $1.98 billion, a P/E ratio of -12.40 and a beta of 2.50.

Lithium Americas (NYSE:LAC - Get Free Report) last posted its quarterly earnings data on Thursday, March 19th. The company reported ($0.37) EPS for the quarter, missing the consensus estimate of ($0.04) by ($0.33). On average, equities research analysts predict that Lithium Americas will post -0.3 earnings per share for the current year.

Institutional Trading of Lithium Americas

Several institutional investors and hedge funds have recently added to or reduced their stakes in LAC. Van ECK Associates Corp raised its stake in Lithium Americas by 158.1% during the 3rd quarter. Van ECK Associates Corp now owns 14,479,615 shares of the company's stock valued at $82,679,000 after purchasing an additional 8,868,971 shares during the period. Millennium Management LLC raised its stake in Lithium Americas by 1,188.3% during the 3rd quarter. Millennium Management LLC now owns 3,307,103 shares of the company's stock valued at $18,885,000 after purchasing an additional 3,050,405 shares during the period. Legal & General Group Plc raised its stake in Lithium Americas by 212.7% during the 4th quarter. Legal & General Group Plc now owns 3,062,306 shares of the company's stock valued at $13,349,000 after purchasing an additional 2,082,891 shares during the period. Trexquant Investment LP bought a new stake in Lithium Americas during the 4th quarter valued at approximately $6,055,000. Finally, Old West Investment Management LLC bought a new stake in Lithium Americas during the 3rd quarter valued at approximately $7,647,000.

About Lithium Americas

Lithium Americas Corp. is a Vancouver‐based resource company focused on the development of lithium projects to support the global transition to electric vehicles and renewable energy storage. The company specializes in advancing lithium brine and claystone assets through feasibility studies, environmental permitting and engineering design. Its technical teams work to produce high‐purity lithium chemicals, including lithium carbonate and lithium hydroxide, for battery manufacturers worldwide.

Lithium Americas' two flagship projects are the Cauchari‐Olaroz lithium brine operation in Jujuy Province, Argentina—developed in partnership with Ganfeng Lithium—and the Thacker Pass lithium clay deposit in northern Nevada, United States.

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