Sigma Lithium Corporation (NASDAQ:SGML) Given Average Rating of "Hold" by Brokerages

Key Points

• Consensus "Hold": Six brokerages cover Sigma Lithium and give it an average rating of Hold (2 sell, 1 hold, 3 buy) with an average 12‑month price target of $18.50.
• Earnings miss and weak fundamentals: The company reported Q1 EPS of ($0.22) vs. ($0.12) expected and revenue of $16.9M vs. $52.2M expected, with a negative net margin (45.64%) and negative ROE (59.34%).
• Market and ownership snapshot: SGML opened at $19.72, has a $2.20B market cap, a 1‑year range of $4.25–$21.35, a negative P/E, and institutional investors own about 64.9% of the stock.

Shares of Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) have been given a consensus rating of "Hold" by the six ratings firms that are presently covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a sell recommendation, one has assigned a hold recommendation and three have issued a buy recommendation on the company. The average 12-month price target among brokers that have issued a report on the stock in the last year is $18.50.

A number of brokerages have recently commented on SGML. BMO Capital Markets reiterated an "outperform" rating and issued a $18.00 target price on shares of Sigma Lithium in a research report on Wednesday, January 14th. Wall Street Zen upgraded shares of Sigma Lithium from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. Bank of America upgraded shares of Sigma Lithium from a "neutral" rating to a "buy" rating and increased their target price for the company from $14.00 to $17.00 in a research report on Thursday, April 2nd. Canaccord Genuity Group upgraded shares of Sigma Lithium from a "hold" rating to a "buy" rating in a research report on Friday, January 23rd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Sigma Lithium in a report on Friday, March 27th.

Sigma Lithium Stock Performance

SGML opened at $19.72 on Friday. The company has a debt-to-equity ratio of 0.26, a current ratio of 0.25 and a quick ratio of 0.14. The firm has a fifty day moving average price of $13.24 and a 200 day moving average price of $11.16. Sigma Lithium has a 1 year low of $4.25 and a 1 year high of $21.35. The stock has a market cap of $2.20 billion, a P/E ratio of -43.82 and a beta of 0.04.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last posted its earnings results on Monday, March 30th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.12) by ($0.10). The firm had revenue of $16.90 million during the quarter, compared to analyst estimates of $52.20 million. Sigma Lithium had a negative net margin of 45.64% and a negative return on equity of 59.34%. Equities research analysts anticipate that Sigma Lithium will post -0.12 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Old West Investment Management LLC lifted its position in shares of Sigma Lithium by 1,163.3% during the third quarter. Old West Investment Management LLC now owns 651,892 shares of the company's stock worth $4,179,000 after purchasing an additional 600,291 shares in the last quarter. Van ECK Associates Corp lifted its position in shares of Sigma Lithium by 142.8% during the third quarter. Van ECK Associates Corp now owns 4,606,668 shares of the company's stock worth $29,529,000 after purchasing an additional 2,709,397 shares in the last quarter. Perpetual Ltd acquired a new stake in shares of Sigma Lithium during the third quarter worth about $1,185,000. Handelsbanken Fonder AB acquired a new stake in shares of Sigma Lithium during the third quarter worth about $4,130,000. Finally, Alps Advisors Inc. lifted its position in shares of Sigma Lithium by 37.1% during the third quarter. Alps Advisors Inc. now owns 269,446 shares of the company's stock worth $1,727,000 after purchasing an additional 72,979 shares in the last quarter. Hedge funds and other institutional investors own 64.86% of the company's stock.

About Sigma Lithium

Sigma Lithium Corp. is a Canada-based mineral exploration and development company focused on the sustainable production of battery-grade lithium from hard rock deposits. The company’s flagship asset is the Grota do Cirilo lithium project, located in the state of Minas Gerais, Brazil. Grota do Cirilo comprises a fully permitted, low-altitude spodumene mine and processing plant designed to produce high-purity lithium concentrate and downstream lithium hydroxide for the global electric vehicle and energy storage markets.

Since its founding in 2018, Sigma Lithium has pursued a vertically integrated approach, overseeing each stage of production from ore extraction and beneficiation to chemical conversion.

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