Lithium Americas Corp. (NYSE: LAC) stock jumped 0.51% on Friday to $25.84 against a previous-day closing price of $25.71. With 2.21 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.99 million shares. During the session, the Other Industrial Metals & Mining company that operates in wider Basic Materials sector, reached to the highest price of $26.92 whereas the lowest price it dropped to was $25.48. The 52-week range on LAC shows that it touched its highest point at $41.56 and its lowest point at $13.37 during that stretch. It currently has a 1-year price target of $39.21. Beta for the stock currently stands at 1.67.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of LAC was up-trending over the past week, with a rise of 7.94%, but this was up by 30.37% over a month. Three-month performance dropped to -1.15% while six-month performance fell -4.37%. The stock gained 87.38% in the past year, while it has lost -11.26% so far this year. A look at the trailing 12-month EPS for LAC yields -0.76 with Next year EPS estimates of 0.65. For the next quarter, that number is -0.11. This implies an EPS growth rate of 15.30% for this year and 350.00% for next year.
Float and Shares Shorts:
At present, 134.52 million LAC shares are outstanding with a float of 111.86 million shares on hand for trading. On Jul 14, 2022, short shares totaled 10.48 million, which was 7.80% higher than short shares on Jun 14, 2022. In addition to Mr. Jonathan D. Evans as the firm’s Pres, CEO & Director, Mr. John Anthony Kanellitsas B.S., M.B.A., MBA serves as its Exec. Vice Chair.
Through their ownership of 25.44% of LAC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold — of LAC, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 1.38% stake in LAC, the Global X Lithium & Battery Tech E is the largest stakeholder. A total of 1,855,351 shares are owned by the mutual fund manager. The VanEck Rare Earth/Strategic Metal, which owns about 1.19% of LAC stock, is the second-largest Mutual Fund holder. It holds 1,597,936 shares valued at 32.17 million. Vanguard Total International Stoc holds 0.90% of the stake in LAC, owning 1,212,253 shares worth 24.4 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2022, LAC reported revenue of $0.00 and operating income of -$18.55M. It generated -$16.56M net income for the quarter, which came to -$71.92M over the last twelve months. The EBITDA in the recently reported quarter was -$84.91M and diluted EPS was -$0.35. EBITDA for the full year was -$97.29M.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for LAC since 14 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With LAC analysts setting a high price target of $44.00 and a low target of $23.41, the average target price over the next 12 months is $36.31. Based on these targets, LAC could surge 70.28% to reach the target high and fall by -9.4% to reach the target low. Reaching the average price target will result in a growth of 40.52% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. LAC will report FY 2022 earnings on 03/17/2023. Analysts have provided yearly estimates in a range of $0.14 being high and -$1.06 being low. For LAC, this leads to a yearly average estimate of -$0.51. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Lithium Americas Corp. surprised analysts by $0.01 when it reported -$0.12 EPS against a consensus estimate of -$0.13. The surprise factor in the prior quarter was -$0.22. Based on analyst estimates, the high estimate for the next quarter is -$0.06 and the low estimate is -$0.30. The average estimate for the next quarter is thus -$0.16.