Lithium Americas (NYSE:LAC) Stock Price Down 8.2% - Time to Sell?

Key Points

• Shares plunged 8.2% to about $5.92 on Monday with roughly 29.7 million shares traded, a 46% rise versus average volume.
• Analyst sentiment is mixed: the consensus rating is "Hold" with a consensus target of $5.81, while broker views range from sell to moderate buy and several recent price-target adjustments.
• Lithium Americas has a $1.82 billion market cap and a negative PE with analysts forecasting -$0.12 EPS for the year; the company beat last quarter's estimate (EPS -$0.02 vs. -$0.05) and shows strong liquidity (quick/current ratio 3.77).

Shares of Lithium Americas Corp. (NYSE:LAC - Get Free Report) dropped 8.2% during mid-day trading on Monday . The company traded as low as $5.93 and last traded at $5.9150. Approximately 29,706,227 shares were traded during trading, an increase of 46% from the average daily volume of 20,354,281 shares. The stock had previously closed at $6.44.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on LAC. Canaccord Genuity Group upgraded Lithium Americas from a "sell" rating to a "hold" rating in a report on Wednesday, November 19th. Wedbush lifted their price objective on shares of Lithium Americas from $5.00 to $8.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 1st. Cormark upgraded shares of Lithium Americas from a "hold" rating to a "moderate buy" rating in a research report on Friday, November 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of Lithium Americas in a research note on Friday, October 31st. Finally, Scotiabank lifted their price target on shares of Lithium Americas from $5.00 to $7.00 and gave the stock a "sector perform" rating in a research note on Monday, January 12th. Three investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $5.81.

Lithium Americas Stock Performance

The company has a quick ratio of 3.77, a current ratio of 3.77 and a debt-to-equity ratio of 0.84. The stock has a market cap of $1.82 billion, a PE ratio of -5.70 and a beta of 1.57. The firm has a 50 day moving average price of $5.22 and a 200 day moving average price of $4.70.

Lithium Americas (NYSE:LAC - Get Free Report) last released its quarterly earnings data on Thursday, November 13th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.05) by $0.03. As a group, research analysts forecast that Lithium Americas Corp. will post -0.12 earnings per share for the current year.

Insider Activity

In other news, SVP Edward Grandy sold 6,183 shares of Lithium Americas stock in a transaction on Friday, November 14th. The stock was sold at an average price of $4.50, for a total value of $27,823.50. Following the transaction, the senior vice president directly owned 135,466 shares in the company, valued at approximately $609,597. This trade represents a 4.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In the last quarter, insiders sold 10,960 shares of company stock valued at $49,372. Company insiders own 1.11% of the company's stock.

Hedge Funds Weigh In On Lithium Americas

Several institutional investors and hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. lifted its holdings in shares of Lithium Americas by 44.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,046,556 shares of the company's stock valued at $2,836,000 after purchasing an additional 324,518 shares during the last quarter. Wealth Enhancement Advisory Services LLC raised its stake in Lithium Americas by 5.1% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 328,582 shares of the company's stock valued at $874,000 after buying an additional 15,898 shares during the last quarter. Perigon Wealth Management LLC boosted its holdings in Lithium Americas by 63.2% in the second quarter. Perigon Wealth Management LLC now owns 25,824 shares of the company's stock worth $69,000 after acquiring an additional 10,000 shares in the last quarter. Axxcess Wealth Management LLC boosted its holdings in Lithium Americas by 33.9% in the second quarter. Axxcess Wealth Management LLC now owns 16,582 shares of the company's stock worth $44,000 after acquiring an additional 4,200 shares in the last quarter. Finally, TD Asset Management Inc grew its stake in shares of Lithium Americas by 14.2% during the second quarter. TD Asset Management Inc now owns 241,323 shares of the company's stock worth $644,000 after acquiring an additional 29,981 shares during the last quarter.

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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