Sigma Lithium (NASDAQ:SGML) Shares Down 8.2% on Analyst Downgrade

Key Points

• Sigma Lithium's shares fell 8.2% after Bank of America downgraded its price target from $12.00 to $10.00, although the bank maintains a buy rating.
• The company reported losses of $0.17 earnings per share for the recent quarter, significantly missing analyst expectations of a loss of $0.03.
• Sigma Lithium has a market capitalization of $714.37 million and is facing a challenging financial outlook with a predicted EPS of -0.12 for the current year.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) shares traded down 8.2% on Tuesday after Bank of America lowered their price target on the stock from $12.00 to $10.00. Bank of America currently has a buy rating on the stock. Sigma Lithium traded as low as $6.05 and last traded at $6.36. 1,710,853 shares were traded during mid-day trading, a decline of 2% from the average session volume of 1,750,947 shares. The stock had previously closed at $6.93.

Several other research analysts have also commented on SGML. Weiss Ratings reiterated a "sell (d-)" rating on shares of Sigma Lithium in a research note on Wednesday, October 8th. Cormark upgraded shares of Sigma Lithium to a "moderate buy" rating in a research note on Thursday, August 21st. Finally, Wall Street Zen lowered shares of Sigma Lithium from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. One analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $10.00.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC acquired a new position in Sigma Lithium during the 1st quarter valued at approximately $139,000. Teacher Retirement System of Texas purchased a new position in shares of Sigma Lithium during the first quarter worth $109,000. Malaga Cove Capital LLC purchased a new position in shares of Sigma Lithium during the second quarter worth $52,000. Hunting Hill Global Capital LLC acquired a new position in Sigma Lithium during the second quarter valued at $86,000. Finally, Nebula Research & Development LLC acquired a new position in Sigma Lithium during the second quarter valued at $87,000. Institutional investors and hedge funds own 64.86% of the company's stock.

Sigma Lithium Stock Down 7.4%

The company has a market capitalization of $714.37 million, a price-to-earnings ratio of -14.58 and a beta of 0.08. The business's 50-day moving average is $6.28 and its 200-day moving average is $6.39. The company has a quick ratio of 0.39, a current ratio of 0.60 and a debt-to-equity ratio of 1.26.

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

Sigma Lithium Company Profile

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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