Is Lithium Americas Corp. (LAC) Good For Your Portfolio?

Lithium Americas Corp. (NYSE:LAC) saw an upside of 0.55% to $21.79 after adding $0.12 on Tuesday. The 5-day average trading volume is 1,718,519 shares of the company’s common stock. It has gained $22.20 in the past week and touched a new high 4 times within the past 5 days. An average of 2,310,110 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,030,314.

LAC’s 1-month performance is 3.88% or $1.50 on its low of $17.58 reached on 01/04/23. The company’s shares have touched a 52-week low of $17.58 and high of $40.39, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, LAC has achieved 14.35% or $2.72 and has reached a new high 7 times. However, the current price is down -46.05% from the 52-week high price.

Valuation Metrics

LAC stock has a beta of 1.45. Moving on to other valuation ratios, the price-to-book (PB) in the most recent quarter is 3.78.

Lithium Americas Corp.’s quick ratio for the period ended September 29 was 52.10, with the current ratio over the same period at 52.10. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.31, while the total debt to equity was 0.31.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went down compared to those figures reported in the previous quarter. Analysts expected LAC to announce -$0.16 per share in earnings in its latest quarter, but it posted -$0.3, representing a -87.50% surprise. EBITDA for the quarter stood at more than -$24.57 million. LAC stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 251.26 million, with total debt at $245.26 million.

Let’s look briefly at Lithium Americas Corp. (LAC) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 64.63% to suggest the stock is trending Neutral, with historical volatility in this time period at 46.50%.

The stock’s 5-day moving average is $20.79, reflecting a +4.81% or $0.99 change from its current price. LAC is currently trading +6.20% above its 20-day SMA, -22.59% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -16.15% and SMA200 by-34.85%.

Stochastic %K and %D was 91.96% and 82.71% and the average true range (ATR) pointed at 1.02. The RSI (14) points at 55.94%, while the 14-day stochastic is at 88.64% with the period’s ATR at 1.04. The stock’s 9-day MACD Oscillator is pointing at 0.67 and 1.31 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Lithium Americas Corp. (NYSE: LAC), Evercore ISI launched coverage with an Outperform rating. Analysts offering their rating for LAC stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate LAC as a “sell,”, while 1 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 14 have offered a “buy” rating.

What is LAC’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $30.00 and a high of $42.50, with their median price target at $36.76. Looking at these predictions, the average price target given by analysts is for Lithium Americas Corp. (LAC) stock is $36.76.

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