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

Key Points

• Sigma Lithium shares fell sharply, opening at $9.02 after closing at $9.40 and later trading near $8.46.
• Analyst sentiment is mixed but leans cautious: BMO downgraded the stock to “market perform,” Zacks rated it “strong sell,” while JPMorgan initiated coverage with an “overweight” rating and a $14 target. The consensus rating is “Hold,” with a $15.38 price target.
• The company missed quarterly expectations, reporting a $0.02 loss per share versus an 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 share price gapped down prior to trading on Thursday. The stock had previously closed at $9.40, but opened at $9.02. Sigma Lithium shares last traded at $8.4570, with a volume of 326,590 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on SGML shares. Zacks Research lowered Sigma Lithium from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 19th. Wall Street Zen lowered Sigma Lithium from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. assumed coverage on Sigma Lithium in a report on Friday, September 18th. They issued an "overweight" rating and a $14.00 target price on the stock. BMO Capital Markets downgraded shares of Sigma Lithium from an "outperform" rating to a "market perform" rating and set a $10.00 target price for the company. in a research report on Thursday. Finally, Weiss Ratings lowered shares of Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, August 13th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Sigma Lithium has an average rating of "Hold" and a consensus price target of $15.38.

Sigma Lithium Stock Performance

The firm has a market capitalization of $901.80 million, a P/E ratio of -33.38 and a beta of 0.64. The stock has a fifty day simple moving average of $10.80 and a two-hundred day simple moving average of $13.40. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.34 and a quick ratio of 0.25.

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

Institutional Trading of Sigma Lithium

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Squarepoint Ops LLC bought a new stake in shares of Sigma Lithium during the second quarter valued at approximately $1,462,000. TD Waterhouse Canada Inc. increased its stake in Sigma Lithium by 21.8% during the 2nd quarter. TD Waterhouse Canada Inc. now owns 24,605 shares of the company's stock valued at $306,000 after purchasing an additional 4,412 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Sigma Lithium during the second quarter worth $726,000. Wellington Management Group LLP bought a new position in shares of Sigma Lithium in the second quarter valued at $286,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of Sigma Lithium during the second quarter valued at about $128,000. 64.86% of the stock is 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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