The stock of Lithium Americas (Argentina) Corp (NYSE: LAAC) has decreased by -1.56 when compared to last closing price of 2.56. Despite this, the company has experienced a 1.20% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-12 that Lithium Americas (Argentina) Corp. is significantly undervalued with a strong buy rating and a 36-month investment horizon due to its high-quality assets and potential lithium price recovery. LAAC’s Caucharí-Olaroz project has a 40-year mine life, with a base-case NPV of $876 million, indicating substantial upside potential from current valuations. Production from Caucharí-Olaroz is ramping up, with expected robust cash flows even at conservative lithium price estimates, supporting strong future financial performance.
Is It Worth Investing in Lithium Americas (Argentina) Corp (NYSE: LAAC) Right Now?
Lithium Americas (Argentina) Corp (NYSE: LAAC) has a price-to-earnings ratio of 0.32x that is above its average ratio. Additionally, the 36-month beta value for LAAC is 1.32. There are mixed opinions on the stock, with 5 analysts rating it as a “buy,” 0 rating it as “overweight,” 4 rating it as “hold,” and 0 rating it as “sell.”
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The public float for LAAC is 136.33M and currently, short sellers hold a 8.71% ratio of that float. The average trading volume of LAAC on September 19, 2024 was 1.33M shares.
LAAC’s Market Performance
LAAC’s stock has seen a 1.20% increase for the week, with a -4.55% drop in the past month and a -29.41% fall in the past quarter. The volatility ratio for the week is 6.33%, and the volatility levels for the past 30 days are at 6.22% for Lithium Americas (Argentina) Corp The simple moving average for the last 20 days is -0.61% for LAAC stock, with a simple moving average of -41.98% for the last 200 days.
Analysts’ Opinion of LAAC
Scotiabank, on the other hand, stated in their research note that they expect to see LAAC reach a price target of $8. The rating they have provided for LAAC stocks is “Sector Outperform” according to the report published on March 22nd, 2024.
Deutsche Bank gave a rating of “Hold” to LAAC, setting the target price at $6.50 in the report published on January 11th of the current year.
LAAC Trading at -7.41% from the 50-Day Moving Average
After a stumble in the market that brought LAAC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -70.76% of loss for the given period.
Volatility was left at 6.22%, however, over the last 30 days, the volatility rate increased by 6.33%, as shares sank -1.56% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -13.70% lower at present.
During the last 5 trading sessions, LAAC rose by +1.20%, which changed the moving average for the period of 200-days by -52.54% in comparison to the 20-day moving average, which settled at $2.53. In addition, Lithium Americas (Argentina) Corp saw -60.13% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for LAAC
The total capital return value is set at -0.03. Equity return is now at value -0.22, with -0.18 for asset returns.
Based on Lithium Americas (Argentina) Corp (LAAC), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at -0.09. The debt to equity ratio resting at 0.49. The interest coverage ratio of the stock is -1.48.
Currently, EBITDA for the company is -50.86 million with net debt to EBITDA at -2.93. The liquidity ratio also appears to be rather interesting for investors as it stands at 5.03.
Conclusion
In conclusion, Lithium Americas (Argentina) Corp (LAAC) has seen bad performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
