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Lithium Americas (TSE:LAC) Stock Price Down 19.2% - Here's Why

Lithium Americas logo with Basic Materials background

Key Points

  • Lithium Americas Corp. shares experienced a significant decline of 19.2%, trading as low as C$10.36, with an unusually high trading volume of 3,486,442 shares, which is a 250% increase from the average volume.
  • Equities analysts have downgraded the stock with multiple ratings changes, including Scotiabank's downgrade to a "strong sell" and Canaccord Genuity's cut to a "sell" rating, indicating a pessimistic outlook for the company.
  • The consensus rating for Lithium Americas is currently "Hold" with an average price target set at C$8.13, reflecting cautious sentiment among analysts.
  • Interested in Lithium Americas? Here are five stocks we like better.

Shares of Lithium Americas Corp. (TSE:LAC - Get Free Report) traded down 19.2% during mid-day trading on Thursday . The company traded as low as C$10.36 and last traded at C$10.71. 3,486,442 shares were traded during trading, an increase of 250% from the average session volume of 995,811 shares. The stock had previously closed at C$13.26.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the stock. National Bankshares increased their price objective on shares of Lithium Americas from C$5.00 to C$10.00 and gave the stock a "sector perform" rating in a research report on Thursday, October 2nd. Cormark cut shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research report 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. TD Cowen cut shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 25th. Finally, 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. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of C$8.13.

Check Out Our Latest Analysis on Lithium Americas

Lithium Americas Stock Performance

The firm has a market cap of C$2.58 billion, a P/E ratio of -41.80 and a beta of 1.26. The company has a current ratio of 13.88, a quick ratio of 52.06 and a debt-to-equity ratio of 0.65. The company's 50-day moving average is C$6.15 and its two-hundred day moving average is C$4.64.

Lithium Americas Company Profile

(Get Free Report)

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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