Lithium Americas (TSE:LAC) Hits New 1-Year Low – Time to Sell?

Lithium Americas Corp. (TSE:LAC)’s stock price hit a new 52-week low during mid-day trading on Thursday. The stock traded as low as C$2.90 and last traded at C$2.94, with a volume of 157,355 shares traded. The stock had previously closed at C$3.02.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on LAC shares. The Goldman Sachs Group upgraded Lithium Americas to a “hold” rating in a research report on Wednesday, July 1st. Canaccord Genuity Group upgraded Lithium Americas from a “hold” rating to a “moderate buy” rating and cut their price objective for the stock from C$7.00 to C$5.25 in a report on Thursday, October 15th. Finally, National Bank Financial cut their price objective on Lithium Americas from C$6.25 to C$5.25 and set a “sector perform” rating for the company in a report on Monday. Three research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of C$7.17.

Lithium Americas Trading Down 3.0%

The company has a market capitalization of C$1.06 billion, a PE ratio of -6.37 and a beta of 3.45. The stock’s fifty day moving average price is C$3.90 and its two-hundred day moving average price is C$5.18. The company has a quick ratio of 52.06, a current ratio of 5.47 and a debt-to-equity ratio of 81.68.

Lithium Americas (TSE:LAC) last posted its earnings results on Thursday, August 13th. The company reported C($0.03) earnings per share (EPS) for the quarter. Lithium Americas had a net margin of 1,429,488,235.29% and a negative return on equity of 8.92%. Sell-side analysts anticipate that Lithium Americas Corp. will post 1.38 earnings per share for the current year.

About Lithium Americas

Lithium Americas is building Thacker Pass located in Humboldt County in northern Nevada. Phase 1 is designed for nominal production capacity of 40,000 tonnes per year of battery-quality lithium carbonate, and mechanical completion is targeted for late 2027. Thacker Pass hosts the largest known measured lithium resource (Measured and Indicated) in the world and is owned by a JV between Lithium Americas (holding a 62% interest), and GM (holding a 38% interest). Project financing for Phase 1 includes a $2.23 billion loan from the U.S.