Sigma Lithium (NASDAQ:SGML) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Sigma Lithium from “hold” to “strong sell,” while other analysts have issued mixed ratings. The consensus rating remains “hold,” with an average price target of $18.50.
• Shares opened at $10.73, well below the 52-week high of $24.48. The company reported a quarterly loss of $0.02 per share and revenue of $54.70 million, missing analyst estimates for both earnings and revenue.
• Institutional investors own approximately 64.86% of Sigma Lithium and several funds recently initiated or increased positions. The company is developing its Grota do Cirilo lithium project in Brazil to produce battery-grade lithium products.

Sigma Lithium (NASDAQ:SGML - Get Free Report) was downgraded by equities researchers at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other equities analysts have also issued reports on the stock. Weiss Ratings lowered shares of Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, August 13th. Wall Street Zen lowered shares of Sigma Lithium from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Three investment analysts have rated the stock with a Buy rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $18.50.

Sigma Lithium Price Performance

Shares of SGML opened at $10.73 on Wednesday. Sigma Lithium has a 52 week low of $4.61 and a 52 week high of $24.48. The company has a current ratio of 0.34, a quick ratio of 0.25 and a debt-to-equity ratio of 1.25. The firm has a market cap of $1.21 billion, a price-to-earnings ratio of -44.71 and a beta of 0.61. The stock has a 50 day moving average of $11.66 and a 200-day moving average of $13.83.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last announced its quarterly earnings data 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). Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. The business had revenue of $54.70 million for the quarter, compared to the consensus estimate of $68.34 million. As a group, analysts forecast that Sigma Lithium will post 0.45 EPS for the current year.

Institutional Investors Weigh In On Sigma Lithium

A number of institutional investors and hedge funds have recently modified their holdings of SGML. Farther Finance Advisors LLC acquired a new position in shares of Sigma Lithium in the 4th quarter worth $51,000. BTG Pactual Asset Management US LLC purchased a new stake in shares of Sigma Lithium during the third quarter valued at $71,000. Quantbot Technologies LP purchased a new position in Sigma Lithium in the 3rd quarter worth about $82,000. Nebula Research & Development LLC purchased a new position in Sigma Lithium in the 2nd quarter worth about $87,000. Finally, Banque Cantonale Vaudoise raised its holdings in Sigma Lithium by 7,339.9% during the 3rd quarter. Banque Cantonale Vaudoise now owns 15,103 shares of the company's stock worth $97,000 after buying an additional 14,900 shares during the period. Institutional investors and hedge funds 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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