Lithium Americas (TSE:LAC) Trading Down 21.2% - What's Next?

Key Points

• Lithium Americas Corp. shares dropped significantly by 21.2%, trading as low as C$10.29 amid higher than average trading volume of 4,182,413 shares.
• Analysts have downgraded the company's stock, with Scotiabank changing its rating from "hold" to "strong sell" and setting a price objective as low as C$6.25.
• The company, which currently has no lithium production, is developing three lithium production assets in Argentina and Nevada, with initial production expected in late 2022 for its Cauchari-Olaroz project.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s share price traded down 21.2% during trading on Thursday . The stock traded as low as C$10.29 and last traded at C$10.45. 4,182,413 shares were traded during trading, an increase of 319% from the average session volume of 999,224 shares. The stock had previously closed at C$13.26.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on LAC shares. Scotiabank lowered shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a research report on Monday, October 6th. 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. National Bankshares upped their price target 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 lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a report on Thursday, October 2nd. Finally, TD Cowen cut shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of C$8.13.

Lithium Americas Stock Performance

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 stock has a fifty day moving average price of C$6.15 and a 200-day moving average price of C$4.64. The firm has a market cap of C$2.57 billion, a price-to-earnings ratio of -41.56 and a beta of 1.26.

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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