Lithium Americas (TSE:LAC) Stock Price Down 21.6% - Time to Sell?

Key Points

• Lithium Americas Corp. experienced a significant drop in stock price, falling 21.6% to C$10.39, with over 4.7 million shares traded, marking a 375% increase in trading volume from the average.
• Multiple equities analysts have downgraded the stock recently, with TD Cowen changing its rating from "strong-buy" to "hold," while Canaccord Genuity set a target price of C$6.25 with a "sell" rating.
• The company is focused on developing three lithium production assets with expectations for the first project to begin production in 2022, though currently, it has no lithium production.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s stock price traded down 21.6% on Thursday . The stock traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares changed hands during 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 have weighed in on the stock. TD Cowen downgraded shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 25th. National Bankshares lifted their price target on shares of 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 downgraded shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Cormark downgraded shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a report on Thursday, October 2nd. Finally, Canaccord Genuity Group downgraded shares of Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 target price on the stock. in a report on Thursday, October 2nd. One equities research 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 stock. According to data from MarketBeat.com, Lithium Americas has a consensus rating of "Hold" and a consensus price target of C$8.13.

Lithium Americas Stock Performance

The business's 50 day moving average is C$6.15 and its 200 day moving average is C$4.64. The stock has a market capitalization of C$2.57 billion, a PE ratio of -41.56 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.

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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