Sigma Lithium (NASDAQ:SGML) Stock Falls 6.3% - Here's Why

Key Points

• Sigma Lithium shares fell 6.3% to about $7.92, with trading volume down 89% from the average daily level.
• Analysts have broadly turned more cautious, with recent downgrades from BMO, JPMorgan, Zacks Research and others. The stock carries a consensus rating of “Reduce” and an average price target of $14.30.
• The company missed quarterly expectations, reporting a $0.02 loss per share versus the projected $0.23 profit and revenue of $54.7 million versus the $68.34 million estimate; institutional investors own 64.86% of its shares.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s share price dropped 6.3% during trading on Wednesday. The company traded as low as $8.02 and last traded at $7.9240. Approximately 352,700 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 3,092,967 shares. The stock had previously closed at $8.46.

Analysts Set New Price Targets

A number of research analysts have recently issued reports on SGML shares. Weiss Ratings downgraded Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday, August 13th. BMO Capital Markets downgraded Sigma Lithium from an "outperform" rating to a "market perform" rating and set a $10.00 price objective for the company. in a report on Thursday, October 1st. Wall Street Zen lowered Sigma Lithium from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Zacks Research downgraded shares of Sigma Lithium from a "hold" rating to a "strong sell" rating in a report on Wednesday, August 19th. Finally, JPMorgan Chase & Co. downgraded shares of Sigma Lithium from an "overweight" rating to a "neutral" rating and set a $11.00 price target on the stock. in a report on Friday, October 2nd. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $14.30.

Sigma Lithium Stock Down 4.4%

The company has a market cap of $911.10 million, a P/E ratio of -33.73 and a beta of 0.67. 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 company has a fifty day moving average of $10.39 and a 200 day moving average of $13.22.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last posted its earnings results on Friday, August 14th. The company reported ($0.02) earnings per share for the quarter, missing analysts' consensus estimates of $0.23 by ($0.25). The firm 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 anticipate that Sigma Lithium Corporation will post 0.15 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sigma Lithium

Institutional investors and hedge funds have recently made changes to their positions in the business. TD Waterhouse Canada Inc. grew its holdings in Sigma Lithium by 17.6% during the 3rd quarter. TD Waterhouse Canada Inc. now owns 28,939 shares of the company's stock valued at $272,000 after buying an additional 4,334 shares in the last quarter. Perpetual Ltd purchased a new stake in Sigma Lithium in the 3rd quarter worth about $361,000. Squarepoint Ops LLC purchased a new position in Sigma Lithium during the 2nd quarter valued at $1,462,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in Sigma Lithium during the 2nd quarter valued at $726,000. Finally, Wellington Management Group LLP bought a new position in Sigma Lithium in the 2nd quarter valued at $286,000. Hedge funds and other institutional investors own 64.86% of the company's stock.

Sigma Lithium Company Profile

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.

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