Lithium Americas (TSE:LAC) Sets New 1-Year Low – Should You Sell?

Shares of Lithium Americas Corp. (TSE:LAC) hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as C$2.43 and last traded at C$2.56, with a volume of 506,673 shares. The stock had previously closed at C$2.69.

Analyst Ratings Changes

LAC has been the subject of several research analyst reports. Canaccord Genuity Group upgraded shares of Lithium Americas from a “hold” rating to a “moderate buy” rating and cut their target price for the company from C$7.00 to C$5.25 in a research note on Thursday, October 15th. National Bank Financial decreased their price target on shares of Lithium Americas from C$6.25 to C$5.25 and set a “sector perform” rating on the stock in a research report on Monday, October 19th. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of C$6.97.

Lithium Americas Stock Performance

The company has a quick ratio of 52.06, a current ratio of 5.47 and a debt-to-equity ratio of 81.68. The firm has a 50-day moving average of C$3.48 and a 200 day moving average of C$5.30. The stock has a market capitalization of C$896.72 million, a P/E ratio of -5.37 and a beta of 3.32.

Lithium Americas (TSE:LAC) last announced its quarterly earnings results on Thursday, August 13th. The company reported C($0.03) earnings per share (EPS) for the quarter. Lithium Americas had a net margin of 1,429,488,235.29% and a negative return on equity of 8.92%. Research analysts anticipate that Lithium Americas Corp. will post 1.38 EPS for the current fiscal year.

About Lithium Americas

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. DOE and strategic investments from GM and Orion.