#6 - Arcadium Lithium (NYSE:ALTM)
One story that resonates with investors in 2024 is the slump in the lithium market. Heading into 2024, the price of lithium was at all-time highs. Lithium is a key component of lithium-ion batteries that are used in electric vehicles (EVs) and smartphones. But the price of lithium has fallen sharply to coincide with the lack of demand for EVs.
That slump was acutely seen in the performance of mining stocks such as that of Arcadium Lithium plc (NYSE: ALTM). The company, which was formed by the merger of Livent and Allkem, has only been publicly trading since the beginning of 2024. And the stock is down 45% in that short time.
However, demand for lithium is expected to remain strong as the EV market appears to be showing signs of a tepid recovery. And that could be reflected in Arcadium’s revenue which is higher year-over-year in the first two quarters of 2024. The company is still profitable, but earnings are lower.
That could account for the 20% increase in short interest in the 30 days ending September 19, 2024. But it also could set up short covering if the ALTM share price makes a sharp move higher.
About Arcadium Lithium
Arcadium Lithium plc engages in the production of lithium chemicals products in the Asia Pacific, North America, Europe, the Middle East, Africa, and Latin America. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for electric vehicles, electronics, agricultural, industrial, greases, polymers, pharmaceutical, battery, and aerospace applications.
Read More - Current Price
- $5.25
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 9 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $11.00 (109.5% Upside)
