Stock on Demand This Week: Livent Corporation (LTHM)


Livent Corporation (NYSE:LTHM) saw a downside of -0.47% to $25.15 after subtracting -$0.12 on Tuesday. The 5-day average trading volume is 2,946,914 shares of the company’s common stock. It has gained $25.42 in the past week and touched a new high 3 times within the past 5 days. An average of 3,737,469 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,720,803.

LTHM’s 1-month performance is 19.65% or $4.42 on its low of $18.26 reached on 01/03/23. The company’s shares have touched a 52-week low of $18.26 and high of $36.38, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, LTHM has achieved 27.18% or $5.31 and has reached a new high 10 times. However, the current price is down -30.87% from the 52-week high price.

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Insider Transactions

LTHM stock investors last saw insider trading activity on Sep 19.Antoniazzi Gilberto (Vice President and CFO) most recently sold 3,635 shares at $32.54 per share on Sep 19. This transaction cost the insider $118,272. President and CEO, Graves Paul W, sold 85,171 shares at a price of $35.00 on Sep 09.

Valuation Metrics

LTHM stock has a beta of 1.77. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 6.10 while the price-to-book (PB) in the most recent quarter is 3.35, with the price to cash flow ratio at 191.77.

Livent Corporation’s quick ratio for the period ended September 29 was 2.70, with the current ratio over the same period at 3.50. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.18, while the total debt to equity was 0.19. In terms of profitability, the gross margin trailing 12 months is 44.80%. The firm’s gross profit as reported stood at $88.4 million against revenue of $420.4 million.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 116.24% to $77.6 million, while revenue of $60.0 million was 22.68% off the previous quarter. Analysts expected LTHM to announce $0.4 per share in earnings in its latest quarter, but it posted $0.41, representing a 2.50% surprise. EBITDA for the quarter stood at more than $109.3 million. LTHM stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 652.7 million, with total debt at $260.2 million. Shareholders hold equity totaling $179.37 million.

Let’s look briefly at Livent Corporation (LTHM) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 72.38% to suggest the stock is trending Overbought, with historical volatility in this time period at 50.11%.

The stock’s 5-day moving average is $24.47, reflecting a +4.61% or $1.11 change from its current price. LTHM is currently trading +21.94% above its 20-day SMA, -21.36% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -17.42% and SMA200 by-1.79%.

Stochastic %K and %D was 97.06% and 92.82% and the average true range (ATR) pointed at 1.05. The RSI (14) points at 62.94%, while the 14-day stochastic is at 96.36% with the period’s ATR at 1.10. The stock’s 9-day MACD Oscillator is pointing at 0.84 and 2.33 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Livent Corporation (NYSE: LTHM), BofA Securities upgraded it to a Buy rating. They previously had an Underperform rating on the stock. Analysts offering their rating for LTHM stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate LTHM as a “sell,”, while 10 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 9 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $22.00 and a high of $45.00, with their median price target at $32.00. Looking at these predictions, the average price target given by analysts is for Livent Corporation (LTHM) stock is $32.25.


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