Lithium Americas (NYSE:LAC) Shares Gap Down Following Analyst Downgrade

Key Points

• Lithium Americas shares fell 3.7% after BMO Capital Markets cut its price target from $4.50 to $4.00 and maintained a “market perform” rating. Shares opened at $3.21, below the prior close of $3.38.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $5.33. Coverage includes multiple neutral or sell ratings, alongside two buy ratings.
• The company reported a quarterly loss of $0.02 per share, beating estimates of a $0.04 loss. Institutional investors also adjusted positions, including Firetrail Investments’ new $17.5 million stake.

Lithium Americas Corp. (NYSE:LAC - Get Free Report) shares gapped down before the market opened on Monday after BMO Capital Markets lowered their price target on the stock from $4.50 to $4.00. The stock had previously closed at $3.38, but opened at $3.21. BMO Capital Markets currently has a market perform rating on the stock. Lithium Americas shares last traded at $3.2450, with a volume of 2,414,411 shares traded.

Other equities research analysts have also recently issued research reports about the company. Wall Street Zen cut Lithium Americas from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Weiss Ratings reissued a "sell (d-)" rating on shares of Lithium Americas in a report on Friday, July 24th. Scotia decreased their price objective on Lithium Americas from $5.00 to $4.50 and set a "sector perform" rating on the stock in a research note on Monday, May 25th. The Goldman Sachs Group started coverage on Lithium Americas in a research report on Wednesday, July 1st. They set a "neutral" rating and a $4.50 price objective for the company. Finally, Wedbush assumed coverage on shares of Lithium Americas in a report on Monday, April 20th. They issued a "neutral" rating and a $8.00 target price on the stock. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $5.33.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Keebeck Wealth Management acquired a new stake in shares of Lithium Americas during the second quarter worth $38,000. Firetrail Investments PTY Ltd. acquired a new position in Lithium Americas in the second quarter valued at $17,542,000. Bank of New York Mellon Corp acquired a new position in Lithium Americas in the second quarter valued at $48,000. Teamwork Financial Advisors LLC lifted its position in Lithium Americas by 3.9% during the second quarter. Teamwork Financial Advisors LLC now owns 893,395 shares of the company's stock worth $3,440,000 after buying an additional 33,475 shares during the period. Finally, VectorGlobal IAG Inc. acquired a new stake in Lithium Americas in the 1st quarter worth about $76,000.

Lithium Americas Trading Down 3.7%

The company has a current ratio of 5.47, a quick ratio of 5.47 and a debt-to-equity ratio of 0.81. The stock has a market capitalization of $1.14 billion, a price-to-earnings ratio of -8.80 and a beta of 2.58. The business has a 50 day simple moving average of $3.55 and a 200-day simple moving average of $4.34.

Lithium Americas (NYSE:LAC - Get Free Report) last posted its quarterly earnings data on Thursday, August 13th. The company reported ($0.02) EPS for the quarter, beating analysts' consensus estimates of ($0.04) by $0.02. On average, equities analysts predict that Lithium Americas Corp. will post -0.14 earnings per share for the current year.

Lithium Americas Company Profile

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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