Sigma Lithium (NASDAQ:SGML) Stock Price Down 12.5% - Time to Sell?

Key Points

• Sigma Lithium shares fell 12.5% to approximately $6.13, well below their 50-day and 200-day moving averages of $9.81 and $12.80, respectively.
• Analyst sentiment is mixed but leans cautious: the stock has an average rating of “Hold”, with three Buy, two Hold, and three Sell ratings, and an average price target of $14.30.
• The company recently missed quarterly expectations, reporting a loss of $0.02 per share versus an expected profit of $0.23 and revenue of $54.70 million versus estimates of $68.34 million; it also posted negative margins and return on equity.

Shares of Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) were down 12.5% during mid-day trading on Monday. The company traded as low as $7.12 and last traded at $6.1260. Approximately 176,050 shares traded hands during mid-day trading, a decline of 94% from the average session volume of 3,034,588 shares. The stock had previously closed at $7.00.

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on SGML shares. JPMorgan Chase & Co. downgraded shares of Sigma Lithium from an "overweight" rating to a "neutral" rating and set a $11.00 price objective for the company. in a research report on Friday, October 2nd. Weiss Ratings lowered 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 report on Saturday, August 8th. ATB Cormark Capital Markets raised shares of Sigma Lithium from a "hold" rating to a "moderate buy" rating in a research report on Thursday, October 15th. Finally, BMO Capital Markets lowered shares of Sigma Lithium from an "outperform" rating to a "market perform" rating and set a $10.00 target price on the stock. in a research report on Thursday, October 1st. Three investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $14.30.

Sigma Lithium Stock Performance

The stock has a market capitalization of $648.53 million, a P/E ratio of -23.98 and a beta of 0.75. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.34 and a quick ratio of 0.25. The stock's 50-day simple moving average is $9.81 and its 200 day simple moving average is $12.80.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last announced its quarterly earnings data 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 for the quarter, compared to analyst estimates of $68.34 million. Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. Research analysts expect that Sigma Lithium Corporation will post 0.15 EPS for the current fiscal year.

Hedge Funds Weigh In On Sigma Lithium

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. State of Wyoming bought a new position in shares of Sigma Lithium in the second quarter worth $109,000. Deutsche Bank AG purchased a new stake in Sigma Lithium in the second quarter worth about $116,000. Public Employees Retirement System of Ohio purchased a new stake in Sigma Lithium in the 2nd quarter worth $128,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Sigma Lithium during the third quarter worth $153,000. Finally, TD Waterhouse Canada Inc. increased 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 worth $272,000 after purchasing an additional 4,334 shares during the period. 64.86% of the stock is owned by hedge funds and other institutional investors.

Sigma Lithium Company Profile

Sigma Lithium Corp. is a Canadian-based lithium development and mining company focused on producing battery-grade lithium concentrate in Brazil. The company's principal asset is the Grota do Cirilo project in the Jequitinhonha Valley of Minas Gerais, one of Brazil's established hard-rock lithium regions.

Grota do Cirilo includes the Xuxa mine and processing operations that produce lithium concentrate from spodumene-bearing ore. Sigma Lithium uses a dense-media separation process designed to recover lithium while minimizing the use of chemicals and water.

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