Sigma Lithium (NASDAQ:SGML) Cut to "Neutral" at JPMorgan Chase & Co.

Key Points

• JPMorgan downgraded Sigma Lithium from “overweight” to “neutral” while maintaining an $11 price target, implying roughly 31.9% upside from the reported $8.34 share price.
• Analyst sentiment has weakened, with BMO, Zacks Research, Weiss Ratings, and Wall Street Zen also issuing downgrades. MarketBeat reports a consensus rating of “Reduce” and an average price target of $14.62.
• Sigma Lithium missed quarterly expectations, reporting a $0.02-per-share loss versus an expected $0.23 profit and revenue of $54.7 million versus the $68.34 million estimate; institutional investors own 64.86% of the stock.

Sigma Lithium (NASDAQ:SGML - Get Free Report) was downgraded by JPMorgan Chase & Co. from an "overweight" rating to a "neutral" rating in a report released on Friday, Briefing.com reports. They currently have a $11.00 price target on the stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 31.89% from the stock's current price.

A number of other equities analysts have also commented on the company. BMO Capital Markets lowered Sigma Lithium from an "outperform" rating to a "market perform" rating and set a $10.00 price objective on the stock. in a research note on Thursday. Zacks Research lowered shares of Sigma Lithium from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Weiss Ratings downgraded shares of Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, August 13th. Finally, Wall Street Zen cut shares of Sigma Lithium from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Sigma Lithium presently has a consensus rating of "Reduce" and an average price target of $14.62.

Sigma Lithium Price Performance

Shares of NASDAQ:SGML opened at $8.34 on Friday. The firm has a market cap of $938.83 million, a PE ratio of -34.75 and a beta of 0.68. The firm's fifty day moving average is $10.76 and its 200-day moving average is $13.38. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.25 and a current ratio of 0.34. Sigma Lithium has a 52 week low of $4.61 and a 52 week high of $24.48.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last posted its quarterly earnings data on Friday, August 14th. The company reported ($0.02) earnings per share for the quarter, missing analysts' consensus estimates of $0.23 by ($0.25). The company had revenue of $54.70 million during the quarter, compared to analyst estimates of $68.34 million. Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. Sell-side analysts predict that Sigma Lithium will post 0.5 earnings per share for the current year.

Institutional Investors Weigh In On Sigma Lithium

A number of hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB boosted its stake in Sigma Lithium by 23.2% during the second quarter. Handelsbanken Fonder AB now owns 1,498,133 shares of the company's stock worth $18,951,000 after acquiring an additional 282,595 shares in the last quarter. GSA Capital Partners LLP bought a new stake in Sigma Lithium in the second quarter valued at $2,512,000. Bank of America Corp DE raised its holdings in shares of Sigma Lithium by 138.4% during the first quarter. Bank of America Corp DE now owns 288,418 shares of the company's stock valued at $3,559,000 after purchasing an additional 167,443 shares during the period. Squarepoint Ops LLC acquired a new position in shares of Sigma Lithium during the second quarter valued at about $1,462,000. Finally, BlackRock Inc. bought a new position in shares of Sigma Lithium during the 2nd quarter worth about $29,727,000. 64.86% of the stock is currently owned by institutional investors.

About Sigma Lithium

Sigma Lithium Corporation is a Canadian mining and technology company focused on the exploration, development, and production of lithium products for the electric vehicle and energy storage industries. Its principal operations are located in Brazil, where the company is developing and operating the Grota do Cirilo lithium project in the state of Minas Gerais.

Grota do Cirilo produces battery-grade lithium spodumene concentrate, a key raw material used to manufacture lithium-ion batteries.

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