Lithium Americas (TSE:LAC) Shares Cross Below 200 Day Moving Average – Should You Sell?

Shares of Lithium Americas Corp. (TSE:LAC) passed below its two hundred day moving average during trading on Friday . The stock has a two hundred day moving average of C$6.66 and traded as low as C$5.35. Lithium Americas shares last traded at C$5.39, with a volume of 1,242,890 shares.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on LAC shares. Wedbush raised shares of Lithium Americas to a “hold” rating in a report on Monday, April 20th. Scotia upped their price objective on Lithium Americas from C$8.50 to C$11.00 and gave the stock a “sector outperform” rating in a report on Friday, May 15th. Finally, National Bank Financial reduced their price objective on Lithium Americas from C$7.50 to C$7.25 and set a “sector perform” rating on the stock in a report on Friday, May 15th. Two equities research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of C$8.25.

Lithium Americas Price Performance

The stock has a market capitalization of C$1.89 billion, a P/E ratio of -11.98 and a beta of 1.26. The company has a current ratio of 7.36, a quick ratio of 52.06 and a debt-to-equity ratio of 65.10. The company has a fifty day simple moving average of C$6.76 and a two-hundred day simple moving average of C$6.66.

About Lithium Americas

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.