It’s been a fairly miserable day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares today thus far. At the time of writing, the ASX 200 has lost 0.2% after swinging rather wildly for most of the trading day. But let’s talk about what’s going on with the Lake Resources N.L. (ASX: LKE) share price.
This ASX 200 lithium share is having a shocker this Tuesday. Lake Resources shares closed at 13.5 cents each yesterday afternoon. But this morning, the lithium stock opened at 12.5 cents a share, which is where the company is currently sitting. That’s a drop worth 7.41%.
So what on earth is going so wrong for Lake today?
Why have Lake Resources shares sunk 7% today?
Well, it’s not entirely clear, unfortunately. There’s been no fresh news or announcements out of Lake Resources for almost a week now.
However, there is another possible explanation here.
Today has not only seen Lake Resources shares take a beating, but most ASX 200 lithium stocks. Pilbara Minerals Ltd (ASX: PLS) shares are currently nursing a 3.04% loss down to $3.51.
Core Lithium Ltd (ASX: CXO) has dropped 4.26%, while Sayona Mining Ltd (ASX: SYA) shares have tanked 4.7%.
This could all stem from the woes of the Liontown Resources Ltd (ASX: LTR) share price.
Liontown shares are leading the other lithium stocks off the proverbial cliff today. At present, the Liontown share price has cratered by a nasty 7.54% down to $1.16 a share.
As my Fool colleague James discussed earlier today, Liotown’s share price sorrows seem to stem from a new broker rating.
ASX broker Citi has reportedly downgraded Liontown’s shares to a sell, with a new share price target of $1.
Citi cited the belief that the market is severely overvaluing the current lithium spodumene price relative to the valuations of lithium stocks like Liontown.
As such, it seems likely that the drop we have seen in Lake Resources shares stems from this pessimism today.
After today’s drop, the Lake Resources share price is now down 12.9% in 2024 so far, as well as down a nasty 80.3% over the past 12 months.
The post Down 7%: What’s gone so wrong for Lake Resources shares today? appeared first on The Motley Fool Australia.
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More reading
- More bad news: Why Lake Resources shares plunged 5% today
- Are Lake Resources shares going to zero?
- Downgraded: Why Lake Resources shares just lost a bull
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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