Lithium Americas (TSE:LAC) Trading Down 21.6% - Should You Sell?

Key Points

• Lithium Americas Corp. shares fell by 21.6%, closing at C$10.39, with trading volume significantly higher at 4.76 million shares compared to the average of 1 million.
• Analysts have issued mixed ratings, with one maintaining a "strong buy" while several others downgraded their ratings, resulting in a consensus target price of C$8.13.
• The company is developing three lithium production assets, with expectations for the first to enter production in late 2022 and others by the late 2020s.

Shares of Lithium Americas Corp. (TSE:LAC - Get Free Report) traded down 21.6% during trading on Thursday . The stock traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares were traded 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 Upgrades and Downgrades

Several equities analysts have commented on the stock. National Bankshares increased their price objective on shares of Lithium Americas from C$5.00 to C$10.00 and gave the company a "sector perform" rating in a research report on Thursday, October 2nd. Scotiabank lowered shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a research report on Monday, October 6th. Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research report on Thursday, October 2nd. Canaccord Genuity Group lowered shares of Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 target price for the company. in a report on Thursday, October 2nd. Finally, TD Cowen lowered shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 25th. One 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 company's stock. According to MarketBeat.com, Lithium Americas has an average rating of "Hold" and a consensus target price of C$8.13.

Lithium Americas Stock Down 21.6%

The company's fifty day moving average price is C$6.15 and its 200-day moving average price is C$4.64. The stock has a market cap of C$2.57 billion, a P/E ratio of -41.56 and a beta of 1.26. The company has a debt-to-equity ratio of 0.65, a quick ratio of 52.06 and a current ratio of 13.88.

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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