Sigma Lithium (NASDAQ:SGML) Shares Down 12.4% - Here's Why

Key Points

• Sigma Lithium shares fell 12.4% in mid-day trading to about $10.86, with trading volume down 58% from the average session.
• Analyst sentiment has weakened, with downgrades from Weiss Ratings, Zacks Research, and Wall Street Zen. The stock carries a consensus “Hold” rating and an $18.50 price target.
• The company missed quarterly expectations, reporting a loss of $0.02 per share versus the expected $0.23 profit and revenue of $54.7 million versus the $68.34 million consensus estimate.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s stock price dropped 12.4% during mid-day trading on Tuesday . The company traded as low as $10.20 and last traded at $10.8550. Approximately 1,357,760 shares were traded during mid-day trading, a decline of 58% from the average session volume of 3,233,171 shares. The stock had previously closed at $12.39.

Wall Street Analyst Weigh In

Several brokerages have issued reports on SGML. Weiss Ratings cut shares of Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, August 13th. Zacks Research downgraded shares of Sigma Lithium from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Finally, Wall Street Zen cut Sigma Lithium from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Three analysts have rated the stock with a Buy rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Sigma Lithium has a consensus rating of "Hold" and a consensus price target of $18.50.

Sigma Lithium Stock Down 12.3%

The company has a debt-to-equity ratio of 1.25, a current ratio of 0.34 and a quick ratio of 0.25. The company has a market capitalization of $1.22 billion, a PE ratio of -45.33 and a beta of 0.64. The business's 50 day simple moving average is $11.39 and its 200 day simple moving average is $13.83.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its quarterly earnings results on Friday, August 14th. The company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.23 by ($0.25). The firm had revenue of $54.70 million for the quarter, compared to analysts' expectations of $68.34 million. Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. As a group, analysts anticipate that Sigma Lithium Corporation will post 0.45 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of SGML. BTG Pactual Asset Management US LLC acquired a new stake in shares of Sigma Lithium during the third quarter valued at about $71,000. Quantbot Technologies LP purchased a new stake in Sigma Lithium in the third quarter valued at approximately $82,000. Nebula Research & Development LLC acquired a new position in Sigma Lithium during the second quarter worth $87,000. Banque Cantonale Vaudoise boosted its position in shares of Sigma Lithium by 7,339.9% during the third quarter. Banque Cantonale Vaudoise now owns 15,103 shares of the company's stock worth $97,000 after buying an additional 14,900 shares during the period. Finally, BNP Paribas Financial Markets grew its stake in shares of Sigma Lithium by 15.9% in the second quarter. BNP Paribas Financial Markets now owns 21,897 shares of the company's stock valued at $99,000 after buying an additional 3,005 shares in the last quarter. Institutional investors and hedge funds own 64.86% of the company's stock.

About Sigma Lithium

Sigma Lithium Corp. is a Canada-based mineral exploration and development company focused on the sustainable production of battery-grade lithium from hard rock deposits. The company’s flagship asset is the Grota do Cirilo lithium project, located in the state of Minas Gerais, Brazil. Grota do Cirilo comprises a fully permitted, low-altitude spodumene mine and processing plant designed to produce high-purity lithium concentrate and downstream lithium hydroxide for the global electric vehicle and energy storage markets.

Since its founding in 2018, Sigma Lithium has pursued a vertically integrated approach, overseeing each stage of production from ore extraction and beneficiation to chemical conversion.

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