Sigma Lithium (NASDAQ:SGML) Shares Down 9.8% - Time to Sell?

Key Points

• Shares dropped 9.8% on Friday to about $21.34, trading roughly 2.07 million shares—around 50% below the stock's average daily volume after closing at $23.65 the prior session.
• Sigma reported a significant Q1 miss, with EPS of ($0.22) vs. ($0.12) expected and revenue of $16.9M vs. $52.2M expected, and shows weak liquidity (current ratio 0.25, quick ratio 0.14) and negative margins.
• Analysts are mixed—three Buys, one Hold and two Sells—giving an overall consensus of "Hold" and an average price target of $18.50, which is below the current share price.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) shares were down 9.8% during trading on Friday . The company traded as low as $21.42 and last traded at $21.3370. Approximately 2,069,078 shares traded hands during mid-day trading, a decline of 50% from the average daily volume of 4,113,345 shares. The stock had previously closed at $23.65.

Wall Street Analyst Weigh In

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

Sigma Lithium Price Performance

The company has a current ratio of 0.25, a quick ratio of 0.14 and a debt-to-equity ratio of 0.26. The stock has a market capitalization of $2.39 billion, a PE ratio of -48.29 and a beta of 0.64. The firm has a 50 day moving average price of $15.32 and a 200 day moving average price of $12.46.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last posted its quarterly earnings data on Monday, March 30th. The company reported ($0.22) EPS for the quarter, missing the consensus estimate 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 analysts' expectations of $52.20 million. Research analysts anticipate that Sigma Lithium Corporation will post 0.91 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Ariose Capital Management Ltd bought a new position in shares of Sigma Lithium in the 1st quarter valued at about $3,826,000. Banque Cantonale Vaudoise lifted its holdings 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 valued at $679,000 after acquiring an additional 3,489 shares during the last quarter. SG Americas Securities LLC bought a new position in shares of Sigma Lithium in the 1st quarter valued at about $1,639,000. Caitong International Asset Management Co. Ltd bought a new position in shares of Sigma Lithium in the 4th quarter valued at about $298,000. Finally, Virtu Financial LLC lifted its holdings in shares of Sigma Lithium by 144.9% in the 4th quarter. Virtu Financial LLC now owns 49,112 shares of the company's stock valued at $648,000 after acquiring an additional 29,059 shares during the last quarter. Institutional investors 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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