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

Key Points

• Sigma Lithium's share price gapped down from $6.24 to $5.85 ahead of trading on Tuesday, last traded at $5.84 with significant volume.
• The company reported disappointing quarterly earnings, with an EPS of ($0.17), missing estimates of ($0.03) and revenue of $16.89 million, well below the expected $50.44 million.
• Analyst ratings for Sigma Lithium vary, with one upgrade to "moderate buy" and a consensus target price of $12.00.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) shares gapped down before the market opened on Tuesday . The stock had previously closed at $6.24, but opened at $5.85. Sigma Lithium shares last traded at $5.84, with a volume of 940,474 shares traded.

Analysts Set New Price Targets

Several research firms recently issued reports on SGML. Wall Street Zen lowered Sigma Lithium from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Bank of America began coverage on Sigma Lithium in a research report on Tuesday, August 26th. They set a "buy" rating and a $12.00 price target on the stock. Finally, Cormark upgraded Sigma Lithium to a "moderate buy" rating in a research report on Thursday, August 21st. One equities research analyst has rated the stock with a Buy rating, According to MarketBeat.com, Sigma Lithium has an average rating of "Buy" and an average price target of $12.00.

Sigma Lithium Trading Down 0.4%

The company has a current ratio of 0.60, a quick ratio of 0.39 and a debt-to-equity ratio of 1.26. The firm has a fifty day simple moving average of $6.03 and a two-hundred day simple moving average of $7.17. The firm has a market cap of $602.19 million, a PE ratio of -12.30 and a beta of 0.09.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its quarterly earnings data on Thursday, August 14th. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $16.89 million during the quarter, compared to analysts' expectations of $50.44 million. Equities analysts forecast that Sigma Lithium Corporation will post -0.12 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in SGML. Norges Bank bought a new stake in shares of Sigma Lithium during the second quarter valued at approximately $11,250,000. Woodline Partners LP boosted its position in shares of Sigma Lithium by 65.6% during the first quarter. Woodline Partners LP now owns 2,678,444 shares of the company's stock valued at $27,856,000 after purchasing an additional 1,060,771 shares in the last quarter. CenterBook Partners LP boosted its position in shares of Sigma Lithium by 416.8% during the second quarter. CenterBook Partners LP now owns 816,515 shares of the company's stock valued at $3,674,000 after purchasing an additional 658,533 shares in the last quarter. Adage Capital Partners GP L.L.C. boosted its position in shares of Sigma Lithium by 104.5% during the second quarter. Adage Capital Partners GP L.L.C. now owns 900,000 shares of the company's stock valued at $4,050,000 after purchasing an additional 460,000 shares in the last quarter. Finally, Sourcerock Group LLC boosted its position in shares of Sigma Lithium by 46.0% during the fourth quarter. Sourcerock Group LLC now owns 1,387,222 shares of the company's stock valued at $15,565,000 after purchasing an additional 437,010 shares in the last quarter. Hedge funds and other institutional investors own 64.86% of the company's stock.

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.