Lithium Americas (TSE:LAC) Sets New 12-Month Low – Should You Sell?

Lithium Americas Corp. (TSE:LAC) hit a new 52-week low during trading on Friday. The stock traded as low as C$2.78 and last traded at C$2.79, with a volume of 797,370 shares. The stock had previously closed at C$2.99.

Analysts Set New Price Targets

A number of research firms recently commented on LAC. Canaccord Genuity Group upgraded shares of Lithium Americas from a “hold” rating to a “moderate buy” rating and lowered their price target for the company from C$7.00 to C$5.25 in a report on Thursday, October 15th. National Bank Financial cut their price target on shares of Lithium Americas from C$6.25 to C$5.25 and set a “sector perform” rating on the stock in a report on Monday, October 19th. Three analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of C$7.17.

Lithium Americas Price Performance

The company has a debt-to-equity ratio of 81.68, a quick ratio of 52.06 and a current ratio of 5.47. The stock has a market cap of C$1.02 billion, a P/E ratio of -6.09 and a beta of 3.45. The firm has a 50-day moving average price of C$3.73 and a 200-day moving average price of C$5.51.

Lithium Americas (TSE:LAC) last announced its earnings results on Thursday, August 13th. The company reported C($0.03) 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%. On average, analysts forecast that Lithium Americas Corp. will post 1.38 earnings per share for the current fiscal year.

Lithium Americas Company Profile

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.