Lithium Americas (NYSE:LAC) Shares Down 1.3% - Should You Sell?

Key Points

• Lithium Americas traded down about 1.3% to $4.55 on Thursday with volume ~27% above average, trading below its 50-day moving average of $5.41 (200-day $3.73).
• Analysts collectively have an average rating of Hold with a consensus price target of $5.30 (three Buys, ten Holds, three Sells) after several recent downgrades and mixed price-target revisions.
• A company VP sold 353,914 shares at an average price of $9.48 — an ~89.8% reduction in that insider’s stake — and insiders now own about 1.11% of the company.

Lithium Americas Corp. (NYSE:LAC - Get Free Report) traded down 1.3% during mid-day trading on Thursday . The company traded as low as $4.54 and last traded at $4.55. 20,617,555 shares were traded during mid-day trading, an increase of 27% from the average session volume of 16,193,458 shares. The stock had previously closed at $4.61.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the stock. Canaccord Genuity Group downgraded shares of Lithium Americas from a "speculative buy" rating to a "sell" rating in a report on Thursday, October 2nd. Cormark cut shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research report on Thursday, October 2nd. BMO Capital Markets increased their price objective on shares of Lithium Americas from $3.50 to $5.00 and gave the stock a "market perform" rating in a research report on Thursday, October 2nd. Cowen lowered shares of Lithium Americas from a "buy" rating to a "hold" rating in a research note on Wednesday, September 24th. Finally, Jefferies Financial Group cut their target price on shares of Lithium Americas from $8.00 to $7.00 and set a "buy" rating on the stock in a research note on Wednesday, September 24th. Three analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $5.30.

Lithium Americas Trading Down 1.3%

The firm's 50-day moving average price is $5.41 and its 200-day moving average price is $3.73. The company has a market cap of $1.12 billion, a P/E ratio of -19.78 and a beta of 1.41. The company has a quick ratio of 9.88, a current ratio of 9.88 and a debt-to-equity ratio of 0.33.

Lithium Americas (NYSE:LAC - Get Free Report) last released its quarterly earnings results on Thursday, August 14th. The company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.02). As a group, equities research analysts expect that Lithium Americas Corp. will post -0.12 earnings per share for the current fiscal year.

Insider Transactions at Lithium Americas

In other news, VP Alexi Illya Zawadzki sold 353,914 shares of the company's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $9.48, for a total value of $3,355,104.72. Following the sale, the vice president directly owned 40,005 shares of the company's stock, valued at $379,247.40. This represents a 89.84% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Ping Capital Management Inc. purchased a new position in Lithium Americas during the first quarter worth $27,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management bought a new position in Lithium Americas in the first quarter worth about $27,000. Harbour Investments Inc. increased its holdings in shares of Lithium Americas by 86.1% during the second quarter. Harbour Investments Inc. now owns 9,900 shares of the company's stock valued at $27,000 after acquiring an additional 4,580 shares in the last quarter. Walleye Capital LLC acquired a new position in shares of Lithium Americas during the second quarter valued at about $28,000. Finally, IHT Wealth Management LLC purchased a new stake in Lithium Americas in the second quarter valued at approximately $28,000.

Lithium Americas Company Profile

Lithium Americas Corp. engages in the exploration and development of lithium properties in the United States and Canada. It holds a 100% interest in the Thacker Pass project located in northern Nevada, as well as investments in exploration properties in the United States and Canada. Lithium Americas Corp.

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