Lithium Americas (TSE:LAC) Trading Down 21.7% - Here's Why

Key Points

• Lithium Americas Corp. (TSE:LAC) experienced a significant drop of 21.7% in stock price, trading as low as C$10.29 amid increased trading volume.
• Multiple analysts have revised their ratings on LAC, with Scotiabank downgrading it from "hold" to "strong sell" and Canaccord Genuity lowering it to "sell" with a price target of C$6.25.
• The company is currently developing three lithium production assets, expecting to start production at its Argentine project by late 2022, with other projects slated for the mid to late 2020s.

Lithium Americas Corp. (TSE:LAC - Get Free Report) was down 21.7% during mid-day trading on Thursday . The stock traded as low as C$10.29 and last traded at C$10.38. Approximately 4,602,334 shares were traded during trading, an increase of 360% from the average daily volume of 1,000,641 shares. The stock had previously closed at C$13.26.

Analyst Ratings Changes

Several analysts recently issued reports on LAC shares. Scotiabank lowered shares of Lithium Americas from a "hold" rating to a "strong sell" rating in a research report on Monday, October 6th. TD Cowen lowered shares of Lithium Americas from a "strong-buy" rating to a "hold" rating in a research report on Thursday, September 25th. Cormark lowered shares of Lithium Americas from a "moderate buy" rating to a "hold" rating in a research report on Thursday, October 2nd. National Bankshares increased their price target 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. Finally, 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. One 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's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of C$8.13.

Lithium Americas Price Performance

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 has a market cap of C$2.57 billion, a price-to-earnings ratio of -41.56 and a beta of 1.26. The business's 50-day simple moving average is C$6.15 and its two-hundred day simple moving average is C$4.64.

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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