Lithium Americas (NYSE:LAC) Trading 7.4% Higher - Here's Why

Key Points

• Lithium Americas shares rose 7.4% to $3.19 in mid-day trading, although volume was 79% below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a $5.33 average price target, with several firms recently lowering targets.
• The company reported a quarterly loss of $0.02 per share, beating estimates for a $0.04 loss, while several institutional investors—including VanEck, Millennium Management and Legal & General—recently increased their positions.

Lithium Americas Corp. (NYSE:LAC - Get Free Report)'s stock price traded up 7.4% during mid-day trading on Friday . The stock traded as high as $3.20 and last traded at $3.19. Approximately 2,362,260 shares changed hands during mid-day trading, a decline of 79% from the average daily volume of 11,343,789 shares. The stock had previously closed at $2.97.

Analyst Ratings Changes

LAC has been the topic of several analyst reports. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Lithium Americas in a research note on Friday, July 24th. Wall Street Zen raised Lithium Americas from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 15th. The Goldman Sachs Group began coverage on Lithium Americas in a report on Wednesday, July 1st. They issued a "neutral" rating and a $4.50 price target for the company. BMO Capital Markets dropped their price objective on Lithium Americas from $4.50 to $4.00 and set a "market perform" rating on the stock in a report on Friday, August 14th. Finally, Scotia cut their target price on Lithium Americas from $5.00 to $4.50 and set a "sector perform" rating on the stock in a research report on Monday, May 25th. Two analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $5.33.

Lithium Americas Trading Up 6.7%

The stock has a market cap of $1.11 billion, a price-to-earnings ratio of -8.57 and a beta of 2.57. The business's fifty day simple moving average is $3.44 and its 200 day simple moving average is $4.26. The company has a debt-to-equity ratio of 0.81, a current ratio of 5.47 and a quick ratio of 5.47.

Lithium Americas (NYSE:LAC - Get Free Report) last issued its earnings results on Thursday, August 13th. The company reported ($0.02) earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.02. On average, research analysts predict that Lithium Americas Corp. will post -0.11 EPS for the current year.

Hedge Funds Weigh In On Lithium Americas

Several institutional investors have recently made changes to their positions in LAC. Van ECK Associates Corp increased its position in Lithium Americas by 20.8% in the fourth quarter. Van ECK Associates Corp now owns 17,495,908 shares of the company's stock worth $76,282,000 after buying an additional 3,016,293 shares during the period. Millennium Management LLC increased its holdings in shares of Lithium Americas by 35.8% in the 4th quarter. Millennium Management LLC now owns 4,489,568 shares of the company's stock worth $19,575,000 after acquiring an additional 1,182,465 shares during the period. Legal & General Group Plc grew its position in Lithium Americas by 212.7% in the 4th quarter. Legal & General Group Plc now owns 3,062,306 shares of the company's stock worth $13,349,000 after purchasing an additional 2,082,891 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Lithium Americas by 1.7% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,755,404 shares of the company's stock valued at $7,350,000 after purchasing an additional 45,941 shares during the period. Finally, Invesco Ltd. increased its stake in shares of Lithium Americas by 44.3% in the third quarter. Invesco Ltd. now owns 2,405,568 shares of the company's stock valued at $13,736,000 after purchasing an additional 739,007 shares during the period.

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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