Lithium Americas (TSE:LAC) Shares Down 6.4% – Should You Sell?

Lithium Americas Corp. (TSE:LAC) was down 6.4% during trading on Thursday . The company traded as low as C$7.00 and last traded at C$7.00. Approximately 361,551 shares were traded during trading, a decline of 76% from the average daily volume of 1,513,234 shares. The stock had previously closed at C$7.48.

Wall Street Analyst Weigh In

A number of research analysts have commented on LAC shares. National Bank Financial reduced their price target on shares of Lithium Americas from C$7.50 to C$7.25 and set a “sector perform” rating on the stock in a research report on Friday. Wedbush upgraded shares of Lithium Americas to a “hold” rating in a research report on Monday, April 20th. TD Securities upgraded shares of Lithium Americas to a “hold” rating in a research report on Monday, February 9th. Finally, Scotia increased their price target on shares of Lithium Americas from C$8.50 to C$11.00 and gave the company a “sector outperform” rating in a research report on Friday. Two research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat, Lithium Americas currently has an average rating of “Hold” and a consensus price target of C$8.25.

Lithium Americas Price Performance

The company has a quick ratio of 52.06, a current ratio of 7.36 and a debt-to-equity ratio of 65.10. The business’s 50-day simple moving average is C$6.33 and its 200 day simple moving average is C$6.80. The firm has a market capitalization of C$2.41 billion, a P/E ratio of -13.82 and a beta of 1.26.

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. Lithium Americas plans for all three resources to be fully integrated, selling into the lithium chemical market.