Lithium Americas (TSE:LAC) Trading Down 6.4% – Here’s Why

Lithium Americas Corp. (TSE:LAC) shares dropped 6.4% during trading on Wednesday . The company traded as low as C$7.33 and last traded at C$7.43. Approximately 763,133 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 1,615,859 shares. The stock had previously closed at C$7.94.

Analyst Ratings Changes

LAC has been the subject of a number of research reports. National Bank Financial dropped their price target on Lithium Americas from C$7.50 to C$7.25 and set a “sector perform” rating for the company in a research note on Friday, May 15th. Wedbush upgraded Lithium Americas to a “hold” rating in a research note on Monday, April 20th. TD Securities upgraded Lithium Americas to a “hold” rating in a research note on Monday, February 9th. Finally, Scotia raised their price objective on shares of 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. Two analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, Lithium Americas presently has an average rating of “Hold” and a consensus price target of C$8.25.

Lithium Americas Stock Performance

The firm has a market capitalization of C$2.53 billion, a P/E ratio of -16.02 and a beta of 1.26. The company has a current ratio of 7.36, a quick ratio of 52.06 and a debt-to-equity ratio of 65.10. The company has a 50-day moving average of C$6.51 and a 200-day moving average of C$6.77.

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.