Lithium Americas (TSE:LAC) Stock Price Down 21.6% - Should You Sell?

Key Points

• Lithium Americas experienced a significant stock price decline of 21.6%, dropping to C$10.39 from a previous close of C$13.26.
• Analysts have revised their price targets, with National Bankshares raising theirs to C$10.00, while Canaccord Genuity set a lower target of C$6.25 and changed their rating to "sell."
• The company's average stock rating is currently a "Hold," with expectations for lithium production to begin at its Cauchari-Olaroz project in late 2022.

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

Analysts Set New Price Targets

Several research analysts have commented on the company. National Bankshares lifted 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. 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 research note on Thursday, October 2nd. TD Cowen lowered Lithium Americas from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 25th. Scotiabank lowered Lithium Americas from a "hold" rating to a "strong sell" rating in a research note on Monday, October 6th. Finally, Cormark downgraded shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research report on Thursday, October 2nd. One research 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, the stock presently has an average rating of "Hold" and an average target price of C$8.13.

Lithium Americas Stock Down 21.6%

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 stock's 50-day moving average is C$6.29 and its 200-day moving average is C$4.68. The company has a market cap of C$2.57 billion, a price-to-earnings ratio of -41.56 and a beta of 1.26.

About Lithium Americas

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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