Lithium Americas (TSE:LAC) Trading Down 21.6% - Here's What Happened

Key Points

• Lithium Americas' stock fell 21.6%, closing at C$10.39, with trading volume significantly exceeding its average, indicating heightened market activity.
• Multiple analysts have downgraded the stock's rating, including Scotiabank shifting from a "hold" to a "strong sell," while National Bankshares raised its target price to C$10.00.
• The company has no current lithium production, with expectations for its first project in Argentina to begin by late 2022, while further projects are scheduled for the mid to late 2020s.

Lithium Americas Corp. (TSE:LAC - Get Free Report) fell 21.6% on Thursday . The stock traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares traded 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.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. National Bankshares upped their price target 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. Scotiabank cut shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a research note on Monday, October 6th. Canaccord Genuity Group lowered shares of Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 price target on the stock. in a research report on Thursday, October 2nd. Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research 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 note on Thursday, September 25th. One analyst has rated the stock with a Strong Buy rating, six have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, Lithium Americas presently has an average rating of "Hold" and a consensus price target of C$8.13.

Lithium Americas Stock Down 21.6%

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 firm has a 50 day simple moving average of C$6.29 and a 200-day simple moving average of C$4.68. The stock has a market capitalization 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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