Lithium Americas (TSE:LAC) Stock Price Passes Below Two Hundred Day Moving Average – Should You Sell?

Lithium Americas Corp. (TSE:LAC) crossed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of C$6.55 and traded as low as C$4.69. Lithium Americas shares last traded at C$4.70, with a volume of 1,722,748 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have commented on LAC. National Bank Financial reduced their price target on shares of Lithium Americas from C$7.50 to C$7.25 and set a “sector perform” rating on the stock in a research report on Friday, May 15th. The Goldman Sachs Group upgraded shares of Lithium Americas to a “hold” rating in a research note on Wednesday, July 1st. Scotia upped their price target on shares of Lithium Americas from C$8.50 to C$11.00 and gave the stock a “sector outperform” rating in a research report on Friday, May 15th. Finally, Wedbush upgraded shares of Lithium Americas to a “hold” rating in a research report on Monday, April 20th. Two analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of C$8.25.

Lithium Americas Stock Performance

The company has a quick ratio of 52.06, a current ratio of 7.36 and a debt-to-equity ratio of 65.10. The stock has a market cap of C$1.65 billion, a P/E ratio of -10.44 and a beta of 1.26. The stock has a fifty day simple moving average of C$6.47 and a 200-day simple moving average of C$6.55.

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.