Lithium Americas (NYSE:LAC) Shares Down 9.3% - Should You Sell?

Key Points

• Lithium Americas Corp. shares fell by 9.3%, trading at $4.6150 after closing at $5.09, with trading volume increasing by 65% from the average daily volume.
• Analysts have adjusted price targets for the company, with a consensus price target of $5.30 and ratings varying from "Buy" to "Sell."
• Insider Alexi Illya Zawadzki sold over 353,000 shares, significantly reducing his ownership by nearly 90%, which raises concerns about insider confidence in the stock.

Lithium Americas Corp. (NYSE:LAC - Get Free Report)'s share price was down 9.3% during mid-day trading on Tuesday . The stock traded as low as $4.58 and last traded at $4.6150. Approximately 26,746,808 shares traded hands during mid-day trading, an increase of 65% from the average daily volume of 16,161,371 shares. The stock had previously closed at $5.09.

Analysts Set New Price Targets

Several research analysts have issued reports on LAC shares. BMO Capital Markets lifted their target price on shares of Lithium Americas from $3.50 to $5.00 and gave the stock a "market perform" rating in a report on Thursday, October 2nd. JPMorgan Chase & Co. reissued an "underweight" rating and set a $5.00 price objective on shares of Lithium Americas in a report on Thursday, October 16th. Scotiabank reissued a "sector underperform" rating and set a $5.00 price objective (up from $2.75) on shares of Lithium Americas in a report on Monday, October 6th. Cowen cut shares of Lithium Americas from a "buy" rating to a "hold" rating in a report on Wednesday, September 24th. Finally, Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research report on Thursday, October 2nd. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and a consensus price target of $5.30.

Lithium Americas Trading Down 9.3%

The company has a debt-to-equity ratio of 0.33, a current ratio of 9.88 and a quick ratio of 9.88. The stock's 50-day moving average is $5.34 and its two-hundred day moving average is $3.71. The stock has a market cap of $1.14 billion, a P/E ratio of -20.06 and a beta of 1.42.

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

Insider Buying and Selling at Lithium Americas

In other news, VP Alexi Illya Zawadzki sold 353,914 shares of the stock in a transaction on 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 owned 40,005 shares of the company's stock, valued at approximately $379,247.40. This represents a 89.84% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Lithium Americas

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Harbour Investments Inc. increased its holdings in shares of Lithium Americas by 86.1% during the 2nd quarter. Harbour Investments Inc. now owns 9,900 shares of the company's stock valued at $27,000 after purchasing an additional 4,580 shares in the last quarter. Ping Capital Management Inc. purchased a new position in shares of Lithium Americas during the 1st quarter valued at approximately $27,000. Empirical Financial Services LLC d.b.a. Empirical Wealth Management purchased a new position in shares of Lithium Americas during the 1st quarter valued at approximately $27,000. Masso Torrence Wealth Management Inc. purchased a new position in shares of Lithium Americas during the 3rd quarter valued at approximately $57,000. Finally, Gainplan LLC purchased a new position in shares of Lithium Americas during the 3rd quarter valued at approximately $58,000.

About Lithium Americas

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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