Lithium Americas (TSE:LAC) Trading Down 21.6% - What's Next?

Key Points

• Lithium Americas Corp. (TSE:LAC) saw its shares drop by 21.6% in mid-day trading, with stock prices reaching as low as C$10.29 after previously closing at C$13.26.
• Several research firms have downgraded their ratings on Lithium Americas, with Scotiabank issuing a "strong sell" and Canaccord Genuity setting a price target of C$6.25.
• The company, which is developing lithium production assets in Argentina and Nevada, currently has an average rating of "Hold" with a price target of C$8.13 from market analysts.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s share price fell 21.6% during mid-day trading on Friday . The stock traded as low as C$10.29 and last traded at C$10.39. 4,766,525 shares changed hands during mid-day 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 Ratings Changes

Several research firms have recently issued reports on LAC. National Bankshares increased 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 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. Canaccord Genuity Group lowered shares of Lithium Americas from a "moderate buy" rating to a "sell" rating and set a C$6.25 price objective for the company. in a research report on Thursday, October 2nd. TD Cowen lowered shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 25th. Finally, Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research 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 issued a Sell rating to the company. According to data from MarketBeat.com, Lithium Americas presently has an average rating of "Hold" and an average price target of C$8.13.

Lithium Americas Stock Performance

The stock's fifty day moving average is C$6.29 and its two-hundred day moving average is C$4.68. The firm has a market capitalization 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 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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