Technicals Say Lithium Americas Corp. (LAC) Is Worth Holding

At the last check on Friday, Lithium Americas Corp.’s (NYSE:LAC) stock was up $0.65, moving up 3.41 percent to $19.73. The average number of shares traded per day over the past five days has been 1,349,978 shares. 1 time new highs have been achieved over the past 5 days, with a $0.16 gain in that time frame. In the last twenty days, the average volume was 1,559,609, while in the previous 50 days, it was 1,500,356.

Since last month, LAC stock retreated -1.45%. Shares of the company fell to $18.70 on 08/02/23, the lowest level in the past month. A 52-week high of $33.10 was reached on 02/09/23 after having rallying from a 52-week low of $17.58. Since the beginning of this year, LAC’s stock price has risen by 4.12% or $0.70, and marked a new high 14 times. However, the stock has declined by -40.39% since its 52-week high.

Financial Health

According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.20, and the total debt-to-equity ratio was 0.20. Based on annual data, LAC earned $21.32 million in gross profit and brought in $163.35 million in revenue.

According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. While analysts expected Lithium Americas Corp. to report -$0.15 quarterly earnings, the actual figure was -$0.04 per share, beating the consensus estimate by 73.30%. During the quarter, the company generated -$16.55 million in EBITDA. The liabilities of Lithium Americas Corp. were 274.53 million at the end of its most recent quarter ended March 30, and its total debt was $211.95 million.

Technical Picture

This quick technical analysis looks at Lithium Americas Corp.’s (LAC) price momentum. With a historical volatility rate of 36.25%, the RSI 9-day stood at 47.58% on 03 August.

With respect to its five-day moving average, the current Lithium Americas Corp. price is up by +0.82% percent or $0.16. At present, LAC shares trade -1.90% below its 20-day simple moving average and -5.44% percent below its 100-day simple moving average. However, the stock is currently trading approximately -12.47% below its SMA50 and -15.92% below its SMA200.

Stochastic coefficient K was 19.52% and Stochastic coefficient D was 18.74%, while ATR was 0.63. Given the Stochastic reading of 31.44% for the 14-day period, the RSI (14) reading has been calculated as 46.29%. As of today, the MACD Oscillator reading stands at -0.15, while the 14-day reading stands at -0.51.

Analyst Ratings

Evercore ISI launched its rating on Lithium Americas Corp. (NYSE: LAC) to an Outperform in a note to investors on November 16, 2022. Lithium Americas Corp. (LAC) has been rated Buy by analysts. According to 0 brokerage firms, LAC is a sell, and 0 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Lithium Americas Corp. stock as buy, with 13 recommending it as overweight.

With a median target price of $36.00, the current consensus forecast for the stock is $26.00 – $41.70. Based on these forecasts, analysts predict Lithium Americas Corp. (LAC) will achieve an average price target of $35.07.

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