Lithium Americas (NYSE:LAC) Shares Down 2.8% – Should You Sell?

Lithium Americas Corp. (NYSE:LAC) shares dropped 2.8% during trading on Friday . The company traded as low as $4.68 and last traded at $4.7250. Approximately 7,847,095 shares were traded during mid-day trading, a decline of 51% from the average daily volume of 15,899,234 shares. The stock had previously closed at $4.86.

Analysts Set New Price Targets

A number of research analysts have issued reports on the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Lithium Americas in a research note on Friday, October 31st. Cormark raised Lithium Americas from a “hold” rating to a “moderate buy” rating in a research report on Friday, November 21st. Scotiabank raised shares of Lithium Americas from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 13th. TD Cowen reaffirmed a “hold” rating and issued a $5.00 target price on shares of Lithium Americas in a report on Thursday, September 25th. Finally, Cowen cut shares of Lithium Americas from a “buy” rating to a “hold” rating in a report on Wednesday, September 24th. Three analysts have rated the stock with a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Lithium Americas currently has an average rating of “Hold” and an average price target of $5.33.

Lithium Americas Stock Down 2.8%

The company has a market cap of $1.43 billion, a PE ratio of -4.50 and a beta of 1.40. The company has a quick ratio of 3.77, a current ratio of 3.77 and a debt-to-equity ratio of 0.84. The company’s fifty day moving average is $5.26 and its 200-day moving average is $4.25.

Lithium Americas (NYSE:LAC) last released its quarterly earnings results on Thursday, November 13th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.03. On average, analysts predict that Lithium Americas Corp. will post -0.12 EPS for the current year.

Insider Activity

In other news, SVP Edward Grandy sold 6,183 shares of the stock in a transaction that occurred on Friday, November 14th. The shares were sold at an average price of $4.50, for a total value of $27,823.50. Following the transaction, the senior vice president owned 135,466 shares in the company, valued at $609,597. This represents a 4.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Alexi Illya Zawadzki sold 353,914 shares of the business’s stock in a transaction that occurred on Wednesday, October 1st. The shares were sold at an average price of $9.48, for a total transaction of $3,355,104.72. Following the sale, the vice president owned 40,005 shares of the company’s stock, valued at $379,247.40. This trade represents a 89.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 364,874 shares of company stock valued at $3,404,477 in the last ninety days. Insiders own 1.11% of the company’s stock.

Hedge Funds Weigh In On Lithium Americas

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Harbour Investments Inc. increased its position in Lithium Americas by 86.1% in the second quarter. Harbour Investments Inc. now owns 9,900 shares of the company’s stock worth $27,000 after buying an additional 4,580 shares in the last quarter. Quarry LP purchased a new stake in Lithium Americas in the 3rd quarter worth approximately $28,000. Walleye Capital LLC bought a new stake in Lithium Americas during the 2nd quarter worth approximately $28,000. IHT Wealth Management LLC purchased a new position in Lithium Americas during the second quarter valued at approximately $28,000. Finally, International Assets Investment Management LLC purchased a new stake in shares of Lithium Americas in the second quarter worth $32,000.

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.