Sigma Lithium (NASDAQ:SGML) Rating Lowered to "Neutral" at Bank of America

Key Points

• Bank of America has downgraded Sigma Lithium from a "buy" rating to "neutral," setting a price target of $7.00, indicating a potential 14.57% upside from the previous close.
• Recent analyst ratings vary, with Cormark upgrading Sigma to a "moderate buy," while Wall Street Zen and Weiss Ratings issued sell ratings, showing a mixed outlook for the company.
• Sigma Lithium reported disappointing earnings, with a loss of ($0.17) EPS and revenue significantly below expectations, contributing to a negative average rating of "Reduce" among analysts.

Sigma Lithium (NASDAQ:SGML - Get Free Report) was downgraded by analysts at Bank of America from a "buy" rating to a "neutral" rating in a research report issued to clients and investors on Friday,Finviz reports. They presently have a $7.00 price target on the stock. Bank of America's price target would indicate a potential upside of 14.57% from the company's previous close.

Several other research analysts have also recently weighed in on the company. Cormark raised Sigma Lithium to a "moderate buy" rating in a research note on Thursday, August 21st. Wall Street Zen downgraded shares of Sigma Lithium from a "hold" rating to a "sell" rating in a report on Saturday, August 16th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Sigma Lithium in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Reduce" and an average target price of $7.00.

Sigma Lithium Trading Up 4.1%

Sigma Lithium stock opened at $6.11 on Friday. Sigma Lithium has a 12-month low of $4.25 and a 12-month high of $15.56. The company has a debt-to-equity ratio of 1.26, a current ratio of 0.60 and a quick ratio of 0.39. The stock has a market capitalization of $680.43 million, a PE ratio of -13.89 and a beta of 0.08. The firm has a 50 day simple moving average of $6.40 and a 200-day simple moving average of $6.28.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its earnings results on Thursday, August 14th. The company reported ($0.17) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.14). Sigma Lithium had a negative return on equity of 47.19% and a negative net margin of 35.69%.The firm had revenue of $16.89 million during the quarter, compared to analyst estimates of $50.44 million. As a group, equities research analysts expect that Sigma Lithium will post -0.12 EPS for the current fiscal year.

Institutional Trading of Sigma Lithium

A number of hedge funds have recently bought and sold shares of the company. Malaga Cove Capital LLC purchased a new position in shares of Sigma Lithium in the second quarter worth approximately $52,000. Hunting Hill Global Capital LLC purchased a new position in Sigma Lithium during the 2nd quarter worth approximately $86,000. Nebula Research & Development LLC acquired a new stake in Sigma Lithium during the 2nd quarter valued at $87,000. BNP Paribas Financial Markets lifted its holdings in shares of Sigma Lithium by 15.9% in the second quarter. BNP Paribas Financial Markets now owns 21,897 shares of the company's stock valued at $99,000 after purchasing an additional 3,005 shares in the last quarter. Finally, Levin Capital Strategies L.P. boosted its position in shares of Sigma Lithium by 125.0% in the second quarter. Levin Capital Strategies L.P. now owns 22,500 shares of the company's stock worth $101,000 after buying an additional 12,500 shares during the period. 64.86% of the stock is owned by hedge funds and other institutional investors.

About Sigma Lithium

Sigma Lithium Corporation engages in the exploration and development of lithium deposits in Brazil. It holds a 100% interest in the Grota do Cirilo, Genipapo, Santa Clara, and São José properties comprising 29 mineral rights covering an area of approximately 185 square kilometers located in the Araçuaí and Itinga regions of the state of Minas Gerais, Brazil.

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