Lithium Americas (TSE:LAC) Stock Price Down 13.7% - Should You Sell?

Key Points

• Lithium Americas Corp. (TSE:LAC) experienced a significant stock price drop of 13.7%, closing at C$11.44 on Thursday, with over 1.1 million shares traded.
• Analyst ratings for Lithium Americas have softened, with major firms downgrading their ratings and target prices, leading to a consensus rating of "Hold" and an average target price of C$8.13.
• The company is still in the development stage, with its first lithium production expected from the Cauchari-Olaroz project in Argentina by late 2022, but has no current production capabilities.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s stock price was down 13.7% on Thursday . The stock traded as low as C$11.20 and last traded at C$11.44. Approximately 1,110,449 shares changed hands during trading, an increase of 13% from the average daily volume of 980,017 shares. The stock had previously closed at C$13.26.

Analyst Ratings Changes

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

Lithium Americas Stock Down 13.7%

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 company has a market cap of C$2.83 billion, a price-to-earnings ratio of -45.76 and a beta of 1.26. The business has a 50-day simple moving average of C$6.15 and a two-hundred day simple moving average of 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.

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