Lithium Americas (NYSE:LAC) Trading Down 8.3% - What's Next?

Key Points

• Lithium Americas Corp. shares fell by 8.3%, trading as low as $6.64, with a significant increase in trading volume of 223% compared to the average.
• Analysts have downgraded the stock's ratings, with three buy ratings, nine holds, and four sells, leading to a consensus target price of $5.30.
• The company reported a quarterly EPS of ($0.06), missing estimates, and has a projected EPS of (-0.12) for the current fiscal year.

Lithium Americas Corp. (NYSE:LAC - Get Free Report) shares dropped 8.3% during mid-day trading on Friday . The company traded as low as $6.64 and last traded at $6.78. Approximately 50,533,194 shares were traded during mid-day trading, an increase of 223% from the average daily volume of 15,645,889 shares. The stock had previously closed at $7.39.

Wall Street Analysts Forecast Growth

LAC has been the subject of a number of analyst reports. TD Cowen reissued a "hold" rating and issued a $5.00 price objective on shares of Lithium Americas in a report on Thursday, September 25th. TD Securities lowered shares of Lithium Americas from a "buy" rating to a "hold" rating and set a $5.00 price objective for the company. in a report on Thursday, September 25th. Jefferies Financial Group lowered their target price on shares of Lithium Americas from $8.00 to $7.00 and set a "buy" rating for the company in a research note on Wednesday, September 24th. Scotiabank reaffirmed a "sector underperform" rating and set a $5.00 target price (up previously from $2.75) on shares of Lithium Americas in a research note on Monday, October 6th. Finally, Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research note on Thursday, October 2nd. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus target price of $5.30.

Lithium Americas Trading Down 8.3%

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 company has a market cap of $1.64 billion, a PE ratio of -29.46 and a beta of 1.43. The company's 50 day simple moving average is $4.54 and its two-hundred day simple moving average is $3.39.

Lithium Americas (NYSE:LAC - Get Free Report) last posted its quarterly earnings data on Thursday, August 14th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.04) by ($0.02). As a group, sell-side analysts anticipate that Lithium Americas Corp. will post -0.12 EPS for the current fiscal year.

Insider Activity at Lithium Americas

In other news, VP Alexi Illya Zawadzki sold 353,914 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the vice president owned 40,005 shares of the company's stock, valued at approximately $379,247.40. This trade represents a 89.84% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 1.11% of the company's stock.

Institutional Trading of Lithium Americas

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sowell Financial Services LLC acquired a new stake in Lithium Americas during the third quarter worth approximately $87,000. Gainplan LLC purchased a new position in shares of Lithium Americas during the third quarter worth approximately $58,000. Teamwork Financial Advisors LLC grew its position in shares of Lithium Americas by 26.6% during the third quarter. Teamwork Financial Advisors LLC now owns 1,281,740 shares of the company's stock worth $7,319,000 after acquiring an additional 268,918 shares during the last quarter. Osaic Holdings Inc. grew its position in Lithium Americas by 71.2% in the 2nd quarter. Osaic Holdings Inc. now owns 86,748 shares of the company's stock valued at $232,000 after buying an additional 36,086 shares during the last quarter. Finally, Tower Research Capital LLC TRC grew its position in Lithium Americas by 72.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 35,998 shares of the company's stock valued at $96,000 after buying an additional 15,123 shares during the last quarter.

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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