Lithium Americas (TSE:LAC) Shares Cross Below 200-Day Moving Average - Should You Sell?

Key Points

• Lithium Americas shares fell below their 200-day moving average, trading as low as C$4.21 and closing at C$4.32, compared with a 200-day average of C$5.86.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating from nine analysts and a consensus price target of C$8.25, although individual targets range from C$7.25 to C$11.00.
• The company is developing the Thacker Pass lithium project in Nevada, with Phase 1 targeting annual production of 40,000 tonnes and mechanical completion expected in late 2027; Lithium Americas owns 62% of the project alongside General Motors.

Lithium Americas Corp. (TSE:LAC - Get Free Report)'s share price passed below its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of C$5.86 and traded as low as C$4.21. Lithium Americas shares last traded at C$4.32, with a volume of 714,033 shares traded.

Analysts Set New Price Targets

Several equities analysts have commented on LAC shares. Scotia increased their price target on Lithium Americas from C$8.50 to C$11.00 and gave the company a "sector outperform" rating in a report on Friday, May 15th. The Goldman Sachs Group upgraded shares of Lithium Americas to a "hold" rating in a research note on Wednesday, July 1st. Finally, National Bank Financial cut their target price on shares of Lithium Americas from C$7.50 to C$7.25 and set a "sector perform" rating for the company in a research report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat, Lithium Americas presently has a consensus rating of "Hold" and a consensus price target of C$8.25.

Lithium Americas Stock Down 0.2%

The business's fifty day moving average price is C$4.75 and its 200 day moving average price is C$5.86. The company has a market capitalization of C$1.57 billion, a P/E ratio of -9.39 and a beta of 1.26. The company has a current ratio of 5.47, a quick ratio of 52.06 and a debt-to-equity ratio of 81.68.

Lithium Americas (TSE:LAC - Get Free Report) last released its quarterly earnings data on Thursday, August 13th. The company reported C($0.03) earnings per share for the quarter. Lithium Americas had a net margin of 1,429,488,235.29% and a negative return on equity of 8.92%. As a group, equities research analysts predict that Lithium Americas Corp. will post 1.3803828 earnings per share for the current fiscal year.

Lithium Americas Company Profile

Lithium Americas is building Thacker Pass located in Humboldt County in northern Nevada. Phase 1 is designed for nominal production capacity of 40,000 tonnes per year of battery-quality lithium carbonate, and mechanical completion is targeted for late 2027. Thacker Pass hosts the largest known measured lithium resource (Measured and Indicated) in the world and is owned by a JV between Lithium Americas (holding a 62% interest), and GM (holding a 38% interest). Project financing for Phase 1 includes a $2.23 billion loan from the U.S.

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