Lithium Americas (TSE:LAC) Sets New 12-Month High – Time to Buy?

Lithium Americas Corp. (TSE:LAC) shares hit a new 52-week high on Monday . The company traded as high as C$11.02 and last traded at C$7.95, with a volume of 1817303 shares trading hands. The stock had previously closed at C$7.49.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on LAC. Cormark upgraded shares of Lithium Americas from a “hold” rating to a “moderate buy” rating in a report on Friday, November 21st. TD Cowen cut Lithium Americas from a “strong-buy” rating to a “hold” rating in a research report on Thursday, September 25th. Scotiabank raised Lithium Americas from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 13th. National Bankshares dropped their price target on shares of Lithium Americas from C$10.00 to C$7.50 and set a “sector perform” rating on the stock in a report on Friday, December 19th. Finally, Canaccord Genuity Group set a C$6.50 price target on shares of Lithium Americas and gave the stock a “hold” rating in a research note on Wednesday, November 19th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of C$7.00.

Lithium Americas Stock Up 6.7%

The stock has a market cap of C$2.42 billion, a P/E ratio of -7.40 and a beta of 1.26. The company’s 50 day moving average price is C$6.92 and its two-hundred day moving average price is C$6.20. The company has a quick ratio of 52.06, a current ratio of 13.88 and a debt-to-equity ratio of 0.65.

Insider Activity at Lithium Americas

In other news, insider Edward Grandy sold 6,183 shares of the business’s stock in a transaction on Friday, November 14th. The shares were sold at an average price of C$6.33, for a total transaction of C$39,138.39. Following the sale, the insider directly owned 135,466 shares of the company’s stock, valued at C$857,499.78. The trade was a 4.37% decrease in their ownership of the stock. Also, insider Aubree Barnum sold 4,763 shares of the stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of C$6.33, for a total transaction of C$30,149.79. Following the completion of the transaction, the insider owned 66,397 shares in the company, valued at approximately C$420,293.01. This trade represents a 6.69% decrease in their position. Insiders sold a total of 21,827 shares of company stock worth $138,165 in the last quarter. 7.40% of the stock is currently owned by company insiders.

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.