Sigma Lithium (NASDAQ:SGML) Shares Gap Up - Should You Buy?

Key Points

• Shares opened higher, rising from a prior close of $8.91 to $9.20 before settling near $9.04, though the stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: Sigma Lithium has an average “Hold” rating and an $18.50 price target, with three Buy and three Sell ratings. Recent firms downgraded the stock, including Zacks Research to “Strong Sell.”
• The company missed quarterly expectations, reporting a loss of $0.02 per share versus an expected profit of $0.23 and revenue of $54.7 million versus $68.34 million expected. Sigma Lithium also posted negative margins and return on equity, while institutional investors own 64.86% of the stock.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s stock price gapped up before the market opened on Tuesday . The stock had previously closed at $8.91, but opened at $9.20. Sigma Lithium shares last traded at $9.04, with a volume of 188,711 shares changing hands.

Wall Street Analysts Forecast Growth

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

Sigma Lithium Stock Performance

The business's fifty day moving average price is $11.14 and its 200-day moving average price is $13.72. The stock has a market cap of $1.02 billion, a PE ratio of -37.85 and a beta of 0.64. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.25 and a current ratio of 0.34.

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 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, equities research analysts forecast that Sigma Lithium Corporation will post 0.45 EPS for the current fiscal year.

Institutional Investors Weigh In On Sigma Lithium

Hedge funds have recently added to or reduced their stakes in the stock. Handelsbanken Fonder AB boosted its stake in shares of Sigma Lithium by 23.2% in the 2nd quarter. Handelsbanken Fonder AB now owns 1,498,133 shares of the company's stock worth $18,951,000 after buying an additional 282,595 shares during the last quarter. GSA Capital Partners LLP purchased a new stake in Sigma Lithium during the second quarter valued at $2,512,000. Bank of America Corp DE lifted its holdings in Sigma Lithium by 138.4% in the first quarter. Bank of America Corp DE now owns 288,418 shares of the company's stock valued at $3,559,000 after acquiring an additional 167,443 shares during the period. BlackRock Inc. purchased a new position in Sigma Lithium in the second quarter worth about $29,727,000. Finally, The Manufacturers Life Insurance Company bought a new stake in shares of Sigma Lithium during the 2nd quarter valued at about $2,989,000. 64.86% of the stock is currently owned by hedge funds and other 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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