Sigma Lithium (NASDAQ:SGML) Shares Gap Up - Here's What Happened

Key Points

• Sigma Lithium shares opened higher, rising from a previous close of $9.71 to $10.32 before trading at approximately $9.93 on volume of 667,620 shares.
• Analysts have broadly turned more cautious, with several downgrades and target-price cuts. The stock carries a consensus “Reduce” rating, although the average price target remains $14.30.
• The company missed quarterly expectations, reporting a $0.02 per-share loss versus an expected $0.23 profit and revenue of $54.70 million against estimates of $68.34 million. Institutional investors own approximately 64.86% of Sigma Lithium’s shares.

Shares of Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) gapped up prior to trading on Wednesday. The stock had previously closed at $9.71, but opened at $10.32. Sigma Lithium shares last traded at $9.9330, with a volume of 667,620 shares changing hands.

Analyst Upgrades and Downgrades

SGML has been the topic of several research reports. 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. Wall Street Zen downgraded shares of Sigma Lithium from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. ATB Cormark Capital Markets downgraded shares of Sigma Lithium from a "moderate buy" rating to a "hold" rating and decreased their target price for the stock from $19.50 to $13.00 in a research note on Friday, October 2nd. BMO Capital Markets cut Sigma Lithium from an "outperform" rating to a "market perform" rating and set a $10.00 price target on the stock. in a research report on Thursday, October 1st. Finally, JPMorgan Chase & Co. downgraded Sigma Lithium from an "overweight" rating to a "neutral" rating and set a $11.00 price objective for the company. in a research note on Friday, October 2nd. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and an average target price of $14.30.

Sigma Lithium Stock Performance

The company has a market cap of $1.12 billion, a PE ratio of -41.46 and a beta of 0.67. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.25 and a current ratio of 0.34. The stock's 50-day simple moving average is $10.75 and its 200 day simple moving average is $13.35.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its 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 during the quarter, compared to analyst estimates of $68.34 million. Sigma Lithium had a negative return on equity of 37.40% and a negative net margin of 19.36%. As a group, equities analysts anticipate that Sigma Lithium Corporation will post 0.27 EPS for the current year.

Institutional Investors Weigh In On Sigma Lithium

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

About Sigma Lithium

Sigma Lithium Corporation is a Canadian mining and development company focused on producing lithium concentrate for the electric vehicle and energy storage industries. Its primary asset is the Grota do Cirilo project in Minas Gerais, Brazil, which includes hard-rock lithium deposits, mining operations and a processing facility.

The company produces lithium concentrate designed for use in lithium-ion batteries. Its processing approach emphasizes the recovery of lithium-bearing material while seeking to reduce the use of hazardous chemicals and minimize environmental impacts.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.