Lithium Americas (TSE:LAC) Shares Down 20.4% - Time to Sell?

Key Points

• Lithium Americas Corp. shares plummeted 20.4% during trading, reaching a low of C$10.36 before closing at C$10.55.
• Several analysts downgraded the stock's ratings, with TD Cowen and Cormark lowering it to "hold," while Scotiabank classified it as a "strong sell."
• The company, which is developing lithium production assets in Argentina and Nevada, has a consensus rating of "Hold" with a target price of C$8.13.

Shares of Lithium Americas Corp. (TSE:LAC - Get Free Report) dropped 20.4% during trading on Thursday . The stock traded as low as C$10.36 and last traded at C$10.55. Approximately 3,895,189 shares traded hands during mid-day trading, an increase of 291% from the average daily volume of 997,230 shares. The stock had previously closed at C$13.26.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. TD Cowen lowered Lithium Americas from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 25th. Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research note on Thursday, October 2nd. Scotiabank cut shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a research report on Monday, October 6th. Canaccord Genuity Group cut shares of Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 price objective on the stock. in a research report on Thursday, October 2nd. Finally, National Bankshares increased their target price on Lithium Americas from C$5.00 to C$10.00 and gave the stock a "sector perform" rating in a report on Thursday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, Lithium Americas presently has a consensus rating of "Hold" and a consensus target price of C$8.13.

Lithium Americas Trading Down 21.6%

The firm has a market cap of C$2.57 billion, a P/E ratio of -41.56 and a beta of 1.26. The company has a quick ratio of 52.06, a current ratio of 13.88 and a debt-to-equity ratio of 0.65. The firm's 50-day simple moving average is C$6.15 and its 200 day simple moving average is C$4.64.

Lithium Americas Company Profile

Lithium Americas is developing three lithium production assets, two brine resources located in northwestern Argentina and a clay resource in Nevada, U.S. While the company has no current lithium production, we expect the first Argentina resource, Cauchari-Olaroz, to enter production in late 2022. We expect the Nevada project, Thacker Pass, to enter production in the middle of the 2020s and the second brine resource, Pastos Grandes, to enter production in the late-2020s.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.