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

Key Points

• Lithium Americas Corp.'s stock price plunged 21.6% recently, closing at C$10.39 after trading as low as C$10.29, with trading volume surging by 375% compared to its average.
• Several brokerages have downgraded their ratings on Lithium Americas, with Canaccord Genuity setting a target price of C$6.25 and Scotiabank assigning a "strong sell" rating.
• The company, which has no current lithium production, is developing three assets, with production expected to start at its Cauchari-Olaroz site in Argentina by late 2022.

Lithium Americas Corp. (TSE:LAC - Get Free Report) shares traded down 21.6% during mid-day trading on Friday . The company 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.

Wall Street Analyst Weigh In

Several analysts recently weighed in on LAC shares. TD Cowen downgraded Lithium Americas from a "strong-buy" rating to a "hold" rating in a report on Thursday, September 25th. National Bankshares lifted their price objective on Lithium Americas from C$5.00 to C$10.00 and gave the company a "sector perform" rating in a report on Thursday, October 2nd. Scotiabank downgraded Lithium Americas from a "hold" rating to a "strong sell" rating in a report on Monday, October 6th. Canaccord Genuity Group downgraded Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 price objective for the company. in a report on Thursday, October 2nd. Finally, Cormark downgraded 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 given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of C$8.13.

Lithium Americas Price Performance

The firm has a market capitalization 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 current ratio of 13.88 and a quick ratio of 52.06. The stock's fifty day simple moving average is C$6.29 and its 200 day simple moving average is C$4.68.

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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