Sigma Lithium (NASDAQ:SGML) Rating Increased to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Sigma Lithium (NASDAQ:SGML) from a "sell" to a "hold"; analyst coverage is mixed (three Buys, one Hold, two Sells) with a consensus target price of $18.50.
• Sigma missed quarterly estimates, reporting EPS of ($0.22) vs. ($0.12) expected and revenue of $16.9M vs. $52.2M expected, and showed negative return on equity and net margin.
• Shares trade around $14.37 with a market cap of $1.60B and a 1‑year range of $4.25–$16.88, and institutional investors own about 64.86% of the stock amid recent large inflows from firms like VanEck and Old West.

Sigma Lithium (NASDAQ:SGML - Get Free Report) was upgraded by Wall Street Zen from a "sell" rating to a "hold" rating in a report issued on Saturday.

Several other equities research analysts have also recently issued reports on SGML. Canaccord Genuity Group upgraded Sigma Lithium from a "hold" rating to a "buy" rating in a report on Friday, January 23rd. BMO Capital Markets reiterated an "outperform" rating and set a $18.00 target price on shares of Sigma Lithium in a research report on Wednesday, January 14th. Weiss Ratings reissued a "sell (e+)" rating on shares of Sigma Lithium in a research note on Friday, March 27th. Citigroup cut Sigma Lithium from an "overweight" rating to an "underperform" rating in a report on Thursday, January 8th. Finally, Bank of America raised shares of Sigma Lithium from a "neutral" rating to a "buy" rating and upped their price objective for the company from $14.00 to $17.00 in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Sigma Lithium presently has an average rating of "Hold" and a consensus target price of $18.50.

Sigma Lithium Stock Performance

Shares of SGML opened at $14.37 on Friday. Sigma Lithium has a 1 year low of $4.25 and a 1 year high of $16.88. The company's 50 day simple moving average is $12.36 and its 200 day simple moving average is $10.45. The company has a market capitalization of $1.60 billion, a price-to-earnings ratio of -31.93, a PEG ratio of 0.29 and a beta of 0.04. The company has a debt-to-equity ratio of 1.38, a quick ratio of 0.32 and a current ratio of 0.49.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its earnings results on Monday, March 30th. The company reported ($0.22) 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 analysts' expectations of $52.20 million. Sigma Lithium had a negative return on equity of 53.45% and a negative net margin of 45.64%. On average, sell-side analysts predict that Sigma Lithium will post -0.12 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SGML. Old West Investment Management LLC boosted its holdings in Sigma Lithium by 1,163.3% in the 3rd quarter. Old West Investment Management LLC now owns 651,892 shares of the company's stock worth $4,179,000 after acquiring an additional 600,291 shares during the period. Van ECK Associates Corp raised its stake 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 valued at $29,529,000 after purchasing an additional 2,709,397 shares during the period. Perpetual Ltd purchased a new stake in shares of Sigma Lithium during the third quarter valued at approximately $1,185,000. Handelsbanken Fonder AB acquired a new position in shares of Sigma Lithium during the third quarter worth $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. 64.86% of the stock is owned by institutional investors and hedge funds.

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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