Sigma Lithium (NASDAQ:SGML) Sets New 52-Week High - Still a Buy?

Key Points

• Sigma Lithium hit a new 52-week high
• Analyst coverage is mixed—three Buys, one Hold and two Sells—leaving an average rating of Hold and an average price target of $18.50, which is below the current share price.
• The latest quarter showed weakness: EPS of ($0.22) missed estimates and revenue was $16.9M vs. $52.2M expected, with negative margins and ROE despite a $2.43B market cap.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) reached a new 52-week high during trading on Thursday . The stock traded as high as $22.74 and last traded at $21.78, with a volume of 4193193 shares trading hands. The stock had previously closed at $20.61.

Analyst Upgrades and Downgrades

Several research analysts recently commented on SGML shares. BMO Capital Markets reissued an "outperform" rating and issued a $18.00 price objective on shares of Sigma Lithium in a research note on Wednesday, January 14th. Bank of America raised Sigma Lithium from a "neutral" rating to a "buy" rating and increased their price objective for the company from $14.00 to $17.00 in a research note on Thursday, April 2nd. Citigroup downgraded Sigma Lithium from an "overweight" rating to an "underperform" rating in a research note on Thursday, January 8th. Canaccord Genuity Group raised Sigma Lithium from a "hold" rating to a "buy" rating in a research note on Friday, January 23rd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Sigma Lithium in a research note on Friday, March 27th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, Sigma Lithium currently has an average rating of "Hold" and an average target price of $18.50.

Sigma Lithium Stock Up 5.7%

The firm has a market capitalization of $2.43 billion, a price-to-earnings ratio of -48.40 and a beta of 0.04. The business has a 50 day simple moving average of $14.52 and a 200-day simple moving average of $11.97. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.14 and a current ratio of 0.25.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last issued its earnings results on Monday, March 30th. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.10). Sigma Lithium had a negative return on equity of 59.34% and a negative net margin of 45.64%.The company had revenue of $16.90 million during the quarter, compared to analyst estimates of $52.20 million. On average, equities analysts expect that Sigma Lithium Corporation will post 0.91 EPS for the current year.

Institutional Trading of Sigma Lithium

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Ariose Capital Management Ltd acquired a new stake in shares of Sigma Lithium in the 1st quarter worth $3,826,000. Banque Cantonale Vaudoise increased its stake in shares of Sigma Lithium by 6.8% in the 1st quarter. Banque Cantonale Vaudoise now owns 55,143 shares of the company's stock worth $679,000 after acquiring an additional 3,489 shares during the last quarter. SG Americas Securities LLC purchased a new position in shares of Sigma Lithium during the 1st quarter worth $1,639,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Sigma Lithium during the 4th quarter worth $298,000. Finally, Virtu Financial LLC grew its holdings in shares of Sigma Lithium by 144.9% during the 4th quarter. Virtu Financial LLC now owns 49,112 shares of the company's stock worth $648,000 after purchasing an additional 29,059 shares during the period. 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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