Lithium Americas (NYSE:LAC) Shares Down 6.3% – Should You Sell?

Lithium Americas Corp. (NYSE:LAC)’s share price fell 6.3% on Friday . The company traded as low as $3.31 and last traded at $3.3350. Approximately 22,817,840 shares changed hands during mid-day trading, an increase of 95% from the average session volume of 11,706,383 shares. The stock had previously closed at $3.56.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Wedbush initiated coverage on Lithium Americas in a report on Monday, April 20th. They issued a “neutral” rating and a $8.00 price objective for the company. Scotiabank dropped their price objective on Lithium Americas from $7.00 to $5.00 and set a “sector perform” rating on the stock in a research note on Monday, April 6th. Wall Street Zen upgraded shares of Lithium Americas from a “strong sell” rating to a “sell” rating in a report on Saturday, May 16th. Scotia decreased their price objective on shares of Lithium Americas from $5.00 to $4.50 and set a “sector perform” rating for the company in a research report on Monday, May 25th. Finally, The Goldman Sachs Group began coverage on shares of Lithium Americas in a research note on Wednesday, July 1st. They issued a “neutral” rating and a $4.50 target price for the company. Two equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Lithium Americas currently has a consensus rating of “Hold” and an average price target of $5.44.

Lithium Americas Price Performance

The stock has a market capitalization of $1.16 billion, a price-to-earnings ratio of -8.09 and a beta of 2.47. The company’s 50-day simple moving average is $4.64 and its 200-day simple moving average is $4.74. The company has a debt-to-equity ratio of 0.65, a current ratio of 7.36 and a quick ratio of 7.36.

Institutional Investors Weigh In On Lithium Americas

A number of institutional investors have recently modified their holdings of the business. Kailix Advisors LLC acquired a new stake in shares of Lithium Americas during the 4th quarter worth $5,123,000. Revisor Wealth Management LLC raised its stake in Lithium Americas by 123.7% in the fourth quarter. Revisor Wealth Management LLC now owns 366,418 shares of the company’s stock valued at $1,598,000 after purchasing an additional 202,594 shares in the last quarter. Legal & General Group Plc lifted its position in Lithium Americas by 212.7% during the fourth quarter. Legal & General Group Plc now owns 3,062,306 shares of the company’s stock worth $13,349,000 after purchasing an additional 2,082,891 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Lithium Americas by 510.1% during the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 142,234 shares of the company’s stock worth $619,000 after buying an additional 118,922 shares in the last quarter. Finally, Credit Industriel ET Commercial bought a new position in Lithium Americas in the 1st quarter valued at about $908,000.

Lithium Americas Company Profile

Lithium Americas Corp. is a Vancouver‐based resource company focused on the development of lithium projects to support the global transition to electric vehicles and renewable energy storage. The company specializes in advancing lithium brine and claystone assets through feasibility studies, environmental permitting and engineering design. Its technical teams work to produce high‐purity lithium chemicals, including lithium carbonate and lithium hydroxide, for battery manufacturers worldwide.

Lithium Americas’ two flagship projects are the Cauchari‐Olaroz lithium brine operation in Jujuy Province, Argentina—developed in partnership with Ganfeng Lithium—and the Thacker Pass lithium clay deposit in northern Nevada, United States.