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

Key Points

• Lithium Americas stock dropped by 21.6% during trading, hitting lows of C$10.29 before closing at C$10.39, with trading volume significantly increasing to 4.76 million shares.
• Multiple analysts have downgraded Lithium Americas’ ratings, with TD Cowen moving from "strong-buy" to "hold" and Canaccord Genuity setting a target price of C$6.25.
• The company, which has a market cap of C$2.57 billion, is developing lithium production assets in Argentina and Nevada but currently has no production output.

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

Analyst Upgrades and Downgrades

Several analysts have issued reports on LAC shares. TD Cowen lowered Lithium Americas from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 25th. Scotiabank lowered Lithium Americas from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Cormark lowered Lithium Americas from a "moderate buy" rating to a "hold" 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 for the company. in a research note on Thursday, October 2nd. Finally, National Bankshares upped their price objective on Lithium Americas from C$5.00 to C$10.00 and gave the stock a "sector perform" rating in a research note on Thursday, October 2nd. One research 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. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of C$8.13.

Lithium Americas Stock Performance

The company has a debt-to-equity ratio of 0.65, a current ratio of 13.88 and a quick ratio of 52.06. The business has a 50-day simple moving average of C$6.29 and a 200-day simple moving average of C$4.68. The firm has a market capitalization of C$2.57 billion, a PE 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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