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

Key Points

• Sigma Lithium shares fell 2.9%, opening at $12.12 versus the prior close of $12.77, with the stock last trading near $12.61.
• Analyst sentiment weakened, with Weiss Ratings, Wall Street Zen, and Zacks Research issuing downgrades. The stock has an average “Hold” rating and a consensus price target of $18.50.
• The company’s latest quarterly results missed expectations, reporting a loss of $0.02 per share versus an expected $0.23 profit and revenue of $54.70 million versus estimates of $68.34 million.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $12.77, but opened at $12.12. Sigma Lithium shares last traded at $12.6090, with a volume of 459,184 shares traded.

Analyst Ratings Changes

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

Sigma Lithium Trading Down 2.9%

The business has a 50 day moving average price of $11.37 and a 200-day moving average price of $13.84. The company has a quick ratio of 0.25, a current ratio of 0.34 and a debt-to-equity ratio of 1.25. The firm has a market cap of $1.40 billion, a price-to-earnings ratio of -51.64 and a beta of 0.64.

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

Institutional Trading of Sigma Lithium

Several large investors have recently added to or reduced their stakes in SGML. Woodline Partners LP raised its position in Sigma Lithium by 26.6% during the third quarter. Woodline Partners LP now owns 2,964,909 shares of the company's stock valued at $19,005,000 after acquiring an additional 623,832 shares in the last quarter. Legal & General Group Plc lifted its stake in shares of Sigma Lithium by 101.7% in the fourth quarter. Legal & General Group Plc now owns 2,647,004 shares of the company's stock valued at $34,911,000 after buying an additional 1,334,772 shares during the period. BlackRock Inc. acquired a new stake in shares of Sigma Lithium during the 2nd quarter worth approximately $29,727,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Sigma Lithium by 24.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,550,713 shares of the company's stock worth $7,091,000 after purchasing an additional 309,338 shares in the last quarter. Finally, Handelsbanken Fonder AB lifted its holdings in shares of Sigma Lithium by 23.2% during the second quarter. Handelsbanken Fonder AB now owns 1,498,133 shares of the company's stock valued at $18,951,000 after acquiring an additional 282,595 shares during the period. 64.86% of the stock is owned by institutional investors and hedge funds.

Sigma Lithium Company Profile

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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