Lithium Americas (TSE:LAC) Shares Down 3.2% – Time to Sell?

Lithium Americas Corp. (TSE:LAC)’s stock price dropped 3.2% during trading on Friday . The stock traded as low as C$8.02 and last traded at C$8.15. Approximately 1,751,916 shares changed hands during trading, an increase of 5% from the average daily volume of 1,668,555 shares. The stock had previously closed at C$8.42.

Wall Street Analyst Weigh In

Several research firms recently issued reports on LAC. Cormark raised Lithium Americas from a “hold” rating to a “moderate buy” rating in a research note on Friday, November 21st. National Bankshares cut their price objective on Lithium Americas from C$10.00 to C$7.50 and set a “sector perform” rating on the stock in a research report on Friday, December 19th. Scotiabank raised Lithium Americas from a “strong sell” rating to a “hold” rating in a research note on Thursday, November 13th. Canaccord Genuity Group set a C$6.50 price target on Lithium Americas and gave the stock a “hold” rating in a research note on Wednesday, November 19th. Finally, TD Cowen downgraded shares of Lithium Americas from a “strong-buy” rating to a “hold” rating in a research report on Thursday, September 25th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Lithium Americas presently has a consensus rating of “Hold” and a consensus price target of C$7.00.

Lithium Americas Stock Performance

The company has a 50 day moving average of C$7.03 and a two-hundred day moving average of C$6.26. The company has a debt-to-equity ratio of 0.65, a current ratio of 13.88 and a quick ratio of 52.06. The company has a market capitalization of C$2.39 billion, a PE ratio of -7.28 and a beta of 1.26.

Insider Buying and Selling at Lithium Americas

In related news, insider Richard Gerspacher sold 6,118 shares of the company’s stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of C$6.33, for a total value of C$38,726.94. Following the sale, the insider owned 84,443 shares in the company, valued at C$534,524.19. This represents a 6.76% decrease in their position. Also, insider Timothy Crowley sold 4,763 shares of the business’s stock in a transaction on Friday, November 14th. The stock was sold at an average price of C$6.33, for a total value of C$30,149.79. Following the completion of the sale, the insider directly owned 128,795 shares in the company, valued at C$815,272.35. This trade represents a 3.57% decrease in their ownership of the stock. Insiders sold 21,827 shares of company stock valued at $138,165 over the last 90 days. 7.40% of the stock is owned by corporate insiders.

Lithium Americas Company Profile

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.