Bank of America Begins Coverage on Sigma Lithium (NASDAQ:SGML)

Key Points

• Bank of America has initiated coverage on Sigma Lithium (NASDAQ:SGML) with a "buy" rating and a price target of $12.00, indicating a potential upside of 87.91% from its current price.
• Despite the positive outlook from Bank of America, Sigma Lithium recently faced mixed reviews from other analysts, with a downgrade to "sell" by Wall Street Zen and a "moderate buy" upgrade from Cormark.
• The company reported a significant earnings miss in its latest quarterly results, with earnings per share of ($0.17), falling short of analyst expectations by ($0.14).

Investment analysts at Bank of America initiated coverage on shares of Sigma Lithium (NASDAQ:SGML - Get Free Report) in a research note issued on Tuesday. The firm set a "buy" rating and a $12.00 price target on the stock. Bank of America's price target suggests a potential upside of 87.91% from the company's current price.

A number of other analysts also recently issued reports on SGML. Wall Street Zen downgraded Sigma Lithium from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Cormark upgraded Sigma Lithium to a "moderate buy" rating in a report on Thursday, August 21st. One equities research analyst has rated the stock with a Buy rating, According to data from MarketBeat, the stock has a consensus rating of "Buy" and an average target price of $12.00.

Sigma Lithium Stock Up 3.8%

Shares of NASDAQ:SGML traded up $0.2360 during midday trading on Tuesday, reaching $6.3860. The company had a trading volume of 197,298 shares, compared to its average volume of 1,480,198. The company has a quick ratio of 0.39, a current ratio of 0.60 and a debt-to-equity ratio of 1.26. The business's 50 day moving average price is $5.64 and its 200 day moving average price is $7.62. The stock has a market cap of $710.83 million, a PE ratio of -14.52 and a beta of 0.07. Sigma Lithium has a 1-year low of $4.25 and a 1-year high of $15.56.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its earnings results on Thursday, August 14th. The company reported ($0.17) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.14). The company had revenue of $16.89 million during the quarter, compared to analyst estimates of $50.44 million. Sigma Lithium had a negative net margin of 35.69% and a negative return on equity of 47.19%. Research analysts forecast that Sigma Lithium will post -0.12 EPS for the current fiscal year.

Institutional Investors Weigh In On Sigma Lithium

A number of institutional investors have recently made changes to their positions in SGML. Wealth Enhancement Advisory Services LLC raised its position in shares of Sigma Lithium by 67.8% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 74,425 shares of the company's stock valued at $774,000 after buying an additional 30,075 shares in the last quarter. Lighthouse Investment Partners LLC raised its position in shares of Sigma Lithium by 78.7% in the fourth quarter. Lighthouse Investment Partners LLC now owns 247,576 shares of the company's stock valued at $2,778,000 after buying an additional 109,064 shares in the last quarter. Sourcerock Group LLC raised its position in shares of Sigma Lithium by 46.0% in the fourth quarter. Sourcerock Group LLC now owns 1,387,222 shares of the company's stock valued at $15,565,000 after buying an additional 437,010 shares in the last quarter. BNP Paribas Financial Markets acquired a new stake in shares of Sigma Lithium in the fourth quarter valued at approximately $185,000. Finally, Point72 Asset Management L.P. raised its position in shares of Sigma Lithium by 349.0% in the fourth quarter. Point72 Asset Management L.P. now owns 405,274 shares of the company's stock valued at $4,547,000 after buying an additional 315,008 shares in the last quarter. Institutional investors own 64.86% of the company's stock.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil.

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