Lithium Americas (NYSE:LAC) Shares Down 7.5% – Should You Sell?

Lithium Americas Corp. (NYSE:LAC)’s share price fell 7.5% on Wednesday . The company traded as low as $5.31 and last traded at $5.32. 4,431,960 shares traded hands during mid-day trading, a decline of 64% from the average session volume of 12,172,565 shares. The stock had previously closed at $5.75.

Analysts Set New Price Targets

A number of brokerages recently weighed in on LAC. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Lithium Americas in a research note on Monday, April 27th. Wall Street Zen raised shares of Lithium Americas from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 16th. Scotiabank decreased their target price on shares of 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. Wedbush began coverage on shares of Lithium Americas in a research note on Monday, April 20th. They issued a “neutral” rating and a $8.00 target price on the stock. Finally, TD Securities raised shares of Lithium Americas to a “hold” rating in a research note on Monday, February 9th. Two investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $5.56.

Lithium Americas Trading Down 2.0%

The stock has a market cap of $1.79 billion, a PE ratio of -12.43 and a beta of 2.31. The company has a debt-to-equity ratio of 0.65, a quick ratio of 7.36 and a current ratio of 7.36. The company’s 50-day moving average price is $4.81 and its 200 day moving average price is $4.93.

Lithium Americas (NYSE:LAC) last released its quarterly earnings results on Thursday, May 14th. The company reported $0.00 EPS for the quarter, beating the consensus estimate of ($0.07) by $0.07. On average, sell-side analysts forecast that Lithium Americas Corp. will post -0.14 EPS for the current fiscal year.

Institutional Trading of Lithium Americas

Several institutional investors have recently added to or reduced their stakes in LAC. Main Street Group LTD acquired a new stake in Lithium Americas in the 1st quarter valued at approximately $26,000. Steward Partners Investment Advisory LLC increased its holdings in Lithium Americas by 149.2% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 5,930 shares of the company’s stock valued at $26,000 after purchasing an additional 3,550 shares during the last quarter. IFP Advisors Inc increased its holdings in Lithium Americas by 1,253.3% in the 4th quarter. IFP Advisors Inc now owns 6,496 shares of the company’s stock valued at $28,000 after purchasing an additional 6,016 shares during the last quarter. Quarry LP acquired a new stake in Lithium Americas in the 3rd quarter valued at approximately $28,000. Finally, Walleye Capital LLC acquired a new stake in Lithium Americas in the 2nd quarter valued at approximately $28,000.

About Lithium Americas

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.