Piedmont Lithium and electric-vehicle company Tesla have amended an agreement that will allow a ramping up of domestic supply of the metal to Tesla for its EV batteries.
Under the amended agreement, Piedmont will deliver around 125,000 metric tons of spodumene concentrate to Tesla from the second half of 2023 through the end of 2025. Instead of locked in pricing deal in prior agreements, , Piedmont’s deal with Tesla is based on a floating mechanism based on market prices.
The prior deal between Piedmont and Tesla was announced more than two years ago, when lithium prices were at a record lows amidst pandemic-induced weakness in demand for EVs. But the metal's prices have surged +1,200% over the past two years as supply has struggled to meet soaring demand for electric vehicle batteries.
PLL moved below its 50-day moving average on May 31, 2023 date and that indicates a change from an upward trend to a downward trend. In of 41 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 24, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PLL as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PLL turned negative on May 24, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 50-day moving average for PLL moved below the 200-day moving average on May 02, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PLL declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 64 cases where PLL's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The 10-day moving average for PLL crossed bullishly above the 50-day moving average on May 12, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PLL advanced for three days, in of 275 cases, the price rose further within the following month. The odds of a continued upward trend are .
PLL may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 195 cases where PLL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.170) is normal, around the industry mean (6.586). P/E Ratio (0.000) is within average values for comparable stocks, (85.655). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.919). Dividend Yield (0.000) settles around the average of (0.073) among similar stocks. P/S Ratio (0.000) is also within normal values, averaging (183.783).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PLL’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which mines for lithium
A.I.dvisor indicates that over the last year, PLL has been closely correlated with LAC. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if PLL jumps, then LAC could also see price increases.
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