Lithium Americas (TSE:LAC) Shares Down 21.6% - Here's What Happened

Key Points

• Lithium Americas Corp. shares fell by 21.6% on Friday, trading as low as C$10.29, marking a significant drop from the previous close of C$13.26.
• Analysts have downgraded their ratings on Lithium Americas, with Scotiabank and others adjusting their recommendations to "strong sell" or "sell," while the average target price is now C$8.13.
• The company is developing three lithium production assets, with the first expected to enter production in late 2022, but it currently has no lithium production.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s stock price traded down 21.6% during trading on Friday . The stock traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares traded hands during mid-day trading, an increase of 375% from the average session volume of 1,002,767 shares. The stock had previously closed at C$13.26.

Analyst Ratings Changes

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

Lithium Americas Stock Performance

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 has a fifty day simple moving average of C$6.29 and a 200-day simple moving average of C$4.68. The company has a market cap of C$2.57 billion, a PE ratio of -41.56 and a beta of 1.26.

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.

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