why Lithium Americas Corp. [LAC] is a Good Choice for Investors After New Price Target of $39.21


Lithium Americas Corp. [NYSE: LAC] loss -8.11% or -1.99 points to close at $22.54 with a heavy trading volume of 9213332 shares. The company report on May 24, 2022 that Lithium Americas Enters Collaboration Agreement with Arena Minerals.

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Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) has entered a Pastos Grandes Technical Collaboration Agreement (“Collaboration Agreement”) with Arena Minerals Inc. (TSX-V: AN) (“Arena”). The intention of the Collaboration Agreement is to share technical information and explore opportunities for collaborating on potential development alternatives with the overall objective of optimizing the production profile of the Pastos Grandes basin.

“Building our relationship with Arena Minerals is an indication of our commitment to expand and further develop our production profile in Salta, Argentina,” commented Ignacio Celorrio, President, Latin America of Lithium Americas. “Arena’s Sal de la Puna project is adjacent to our recently acquired 100%-owned Pastos Grandes project, and together, we will collaborate to develop the basin in the most sustainable and efficient way for all stakeholders.”.

It opened the trading session at $23.80, the shares rose to $23.90 and dropped to $22.21, the range by which the price of stock traded the whole day. The daily chart for LAC points out that the company has recorded -42.66% loss over the past six months. However, it is still -79.46% lower than its most recent low trading price.

If we look at the average trading volume of 4.94M shares, LAC reached to a volume of 9213332 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Lithium Americas Corp. [LAC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for LAC shares is $39.21 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on LAC stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stifel have made an estimate for Lithium Americas Corp. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 25, 2022. While these analysts kept the previous recommendation, HSBC Securities raised their target price to Buy. The new note on the price target was released on January 27, 2022, representing the official price target for Lithium Americas Corp. stock. Previously, the target price had yet another raise from $30 to $40, while Cowen kept a Outperform rating on LAC stock.

The Average True Range (ATR) for Lithium Americas Corp. is set at 2.17 The Price to Book ratio for the last quarter was 2.78, with the Price to Cash per share for the same quarter was set at 3.82.

Trading performance analysis for LAC stock

Lithium Americas Corp. [LAC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.82. With this latest performance, LAC shares dropped by -11.82% in over the last four-week period, additionally sinking by -42.66% over the last 6 months – not to mention a rise of 42.84% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for LAC stock in for the last two-week period is set at 41.88, with the RSI for the last a single of trading hit 39.79, and the three-weeks RSI is set at 43.04 for Lithium Americas Corp. [LAC]. The present Moving Average for the last 50 days of trading for this stock 28.36, while it was recorded at 25.41 for the last single week of trading, and 27.39 for the last 200 days.

Lithium Americas Corp. [LAC]: A deeper dive into fundamental analysis

Lithium Americas Corp.’s liquidity data is similarly interesting compelling, with a Current Ratio set at 51.20.

An analysis of insider ownership at Lithium Americas Corp. [LAC]

There are presently around $770 million, or 23.90% of LAC stock, in the hands of institutional investors. The top three institutional holders of LAC stocks are: VANGUARD GROUP INC with ownership of 3,047,023, which is approximately 5307.413% of the company’s market cap and around 14.93% of the total institutional ownership; FIFTHDELTA LTD, holding 2,514,927 shares of the stock with an approximate value of $61.69 million in LAC stocks shares; and HIMENSION CAPITAL (SINGAPORE) PTE. LTD., currently with $60.85 million in LAC stock with ownership of nearly 5.711% of the company’s market capitalization.

172 institutional holders increased their position in Lithium Americas Corp. [NYSE:LAC] by around 12,766,794 shares. Additionally, 80 investors decreased positions by around 5,300,155 shares, while 43 investors held positions by with 13,304,805 shares. The mentioned changes placed institutional holdings at 31,371,754 shares, according to the latest SEC report filing. LAC stock had 88 new institutional investments in for a total of 4,688,276 shares, while 28 institutional investors sold positions of 864,547 shares during the same period.