Sigma Lithium (NASDAQ:SGML) Stock Price Up 8% - What's Next?

Key Points

• Shares rose 8% to about $9.01 in mid-day trading, although volume was 43% below the average session level.
• Analyst sentiment remains cautious: Sigma Lithium has an average “Reduce” rating, with two Buy, two Hold, and three Sell ratings; the average price target is $14.62.
• The company missed quarterly expectations, reporting a $0.02 loss per share versus the anticipated $0.23 profit 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) rose 8% on Friday. The company traded as high as $8.83 and last traded at $9.0060. 1,797,608 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 3,178,102 shares. The stock had previously closed at $8.34.

Wall Street Analysts Forecast Growth

Several analysts have commented on SGML shares. Weiss Ratings downgraded Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, August 13th. JPMorgan Chase & Co. cut Sigma Lithium from an "overweight" rating to a "neutral" rating and set a $11.00 price target for the company. in a research note on Friday. BMO Capital Markets downgraded Sigma Lithium from an "outperform" rating to a "market perform" rating and set a $10.00 price target on the stock. in a report on Thursday. Wall Street Zen cut Sigma Lithium from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Zacks Research lowered Sigma Lithium from a "hold" rating to a "strong sell" rating in a research report on Wednesday, August 19th. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Sigma Lithium currently has an average rating of "Reduce" and an average target price of $14.62.

Sigma Lithium Price Performance

The stock has a market capitalization of $1.01 billion, a P/E ratio of -37.31 and a beta of 0.68. 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 firm has a fifty day moving average price of $10.76 and a two-hundred day moving average price of $13.38.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last posted its quarterly earnings data on Friday, August 14th. The company reported ($0.02) EPS for the quarter, missing analysts' consensus estimates of $0.23 by ($0.25). The firm 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, analysts expect that Sigma Lithium Corporation will post 0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Sigma Lithium

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Squarepoint Ops LLC bought a new stake in Sigma Lithium during the second quarter valued at about $1,462,000. TD Waterhouse Canada Inc. lifted its position in shares of 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 buying an additional 4,412 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new position in shares of Sigma Lithium during the 2nd quarter valued at about $726,000. Wellington Management Group LLP bought a new position in shares of Sigma Lithium during the 2nd quarter valued at approximately $286,000. Finally, Public Employees Retirement System of Ohio bought a new position in shares of Sigma Lithium during the 2nd quarter valued at approximately $128,000. 64.86% of the stock is currently owned by hedge funds and other institutional investors.

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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