Lithium Americas (NYSE:LAC) Stock Price Down 2.5% - What's Next?

Key Points

• Stock down 2.5%: Lithium Americas shares fell about 2.5% mid-day to roughly $4.41 (intraday low $4.39) on 10.85M shares traded, about 32% below average; the company has a market cap near $1.34B and 50-/200-day SMAs of $5.17 and $4.30.
• Analyst consensus is "Hold" with a $5.33 target: Analysts are mixed (3 Buy, 11 Hold, 1 Sell), leaving a MarketBeat consensus rating of Hold and an average price target of $5.33 amid recent upgrades and downgrades from several firms.
• Significant insider selling: Insiders sold 364,874 shares (~$3.4M) over the past three months, including a large VP sale of 353,914 shares on Oct. 1, leaving insiders with about 1.11% ownership, which may influence market sentiment.

Lithium Americas Corp. (NYSE:LAC - Get Free Report)'s share price fell 2.5% during mid-day trading on Tuesday . The company traded as low as $4.39 and last traded at $4.4080. 10,854,402 shares were traded during mid-day trading, a decline of 32% from the average session volume of 15,851,318 shares. The stock had previously closed at $4.52.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on LAC shares. Cormark raised Lithium Americas from a "hold" rating to a "moderate buy" rating in a research note on Friday, November 21st. Cowen lowered Lithium Americas from a "buy" rating to a "hold" rating in a research report on Wednesday, September 24th. TD Securities cut Lithium Americas from a "buy" rating to a "hold" rating and set a $5.00 price target on the stock. in a research note on Thursday, September 25th. Weiss Ratings reissued a "sell (d-)" rating on shares of Lithium Americas in a research note on Friday, October 31st. Finally, JPMorgan Chase & Co. upgraded shares of Lithium Americas from an "underweight" rating to a "neutral" rating and set a $5.00 target price on the stock in a report on Thursday, November 6th. Three equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Lithium Americas currently has a consensus rating of "Hold" and a consensus price target of $5.33.

Lithium Americas Price Performance

The firm has a market cap of $1.34 billion, a PE ratio of -4.20 and a beta of 1.39. The company has a debt-to-equity ratio of 0.84, a current ratio of 3.77 and a quick ratio of 3.77. The firm has a 50-day simple moving average of $5.17 and a 200 day simple moving average of $4.30.

Lithium Americas (NYSE:LAC - Get Free Report) last issued its quarterly earnings results on Thursday, November 13th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.05) by $0.03. As a group, equities analysts expect that Lithium Americas Corp. will post -0.12 EPS for the current year.

Insider Buying and Selling

In related news, VP Alexi Illya Zawadzki sold 353,914 shares of the company's stock in a transaction that occurred on Wednesday, October 1st. The stock was 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 in the company, valued at $379,247.40. This represents a 89.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, SVP Edward Grandy sold 6,183 shares of Lithium Americas stock in a transaction on Friday, November 14th. The shares were sold at an average price of $4.50, for a total value of $27,823.50. Following the transaction, the senior vice president owned 135,466 shares of the company's stock, valued at $609,597. The trade was a 4.37% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 364,874 shares of company stock worth $3,404,477. Insiders own 1.11% of the company's stock.

Institutional Trading of Lithium Americas

Several institutional investors have recently bought and sold shares of the company. Harbour Investments Inc. lifted its stake in shares of Lithium Americas by 86.1% in the second quarter. Harbour Investments Inc. now owns 9,900 shares of the company's stock worth $27,000 after buying an additional 4,580 shares in the last quarter. Quarry LP purchased a new position in Lithium Americas in the 3rd quarter worth approximately $28,000. Walleye Capital LLC bought a new position in Lithium Americas in the 2nd quarter valued at approximately $28,000. IHT Wealth Management LLC bought a new stake in shares of Lithium Americas in the 2nd quarter worth $28,000. Finally, International Assets Investment Management LLC purchased a new position in shares of Lithium Americas in the second quarter worth $32,000.

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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