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

Key Points

• Lithium Americas Corp. shares fell by 21.6%, trading as low as C$10.29, with increased trading volume of 4.8 million shares, up 375% from average levels.
• Analysts have downgraded the stock, with Canaccord Genuity cutting their rating to "sell" and setting a price target of C$6.25, while the consensus rating remains at "Hold" with a target of C$8.13.
• The company is developing three lithium production assets, with the first anticipated to start production in late 2022, although it currently has no active production.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s share price dropped 21.6% on Friday . The stock traded as low as C$10.29 and last traded at C$10.39. Approximately 4,766,525 shares were traded 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

LAC has been the topic of several analyst reports. Canaccord Genuity Group cut shares of 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 cut shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a research note on Thursday, September 25th. National Bankshares boosted their price objective on shares of 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. Scotiabank lowered shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Finally, Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a report on Thursday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of C$8.13.

Lithium Americas Stock Down 21.6%

The firm's fifty day moving average price is C$6.29 and its two-hundred day moving average price is C$4.68. The stock has a market cap of C$2.57 billion, a price-to-earnings ratio of -41.56 and a beta of 1.26. The company has a debt-to-equity ratio of 0.65, a current ratio of 13.88 and a quick ratio of 52.06.

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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