Sigma Lithium (NASDAQ:SGML) Shares Gap Down - Here's Why

Key Points

• Sigma Lithium shares gapped down premarket — opening at $13.39 from $14.50 and trading around $13.20, down roughly 6.8% on about 1.26 million shares.
• Analysts' consensus is a "Reduce" rating with a $7 target; Bank of America recently downgraded the stock to Neutral ($7), with two Hold and one Sell on file.
• Company fundamentals are weak: quarterly revenue of $28.6M badly missed the $70.5M estimate, EPS was -$0.10, margins are negative, and liquidity is strained (current ratio 0.49, debt/equity 1.38).

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $14.50, but opened at $13.39. Sigma Lithium shares last traded at $13.1950, with a volume of 1,260,032 shares trading hands.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SGML. Zacks Research raised shares of Sigma Lithium from a "strong sell" rating to a "hold" rating in a research note on Tuesday, November 25th. Weiss Ratings restated a "sell (e+)" rating on shares of Sigma Lithium in a report on Monday, December 22nd. Finally, Bank of America downgraded Sigma Lithium from a "buy" rating to a "neutral" rating and set a $7.00 price target for the company. in a research note on Friday, October 24th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Sigma Lithium presently has a consensus rating of "Reduce" and a consensus target price of $7.00.

Sigma Lithium Trading Down 6.8%

The company has a debt-to-equity ratio of 1.38, a current ratio of 0.49 and a quick ratio of 0.32. The company has a market capitalization of $1.51 billion, a P/E ratio of -43.76 and a beta of 0.01. The firm has a fifty day moving average price of $8.91 and a 200-day moving average price of $7.00.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last posted its quarterly earnings data on Friday, November 14th. The company reported ($0.10) earnings per share for the quarter, hitting the consensus estimate of ($0.10). Sigma Lithium had a negative return on equity of 35.97% and a negative net margin of 24.13%.The business had revenue of $28.55 million for the quarter, compared to analysts' expectations of $70.54 million. On average, equities research analysts anticipate that Sigma Lithium Corporation will post -0.12 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SGML. BNP Paribas Financial Markets increased its stake in shares of Sigma Lithium by 15.9% during the 2nd quarter. BNP Paribas Financial Markets now owns 21,897 shares of the company's stock worth $99,000 after purchasing an additional 3,005 shares during the last quarter. Virtu Financial LLC increased its position in Sigma Lithium by 26.6% in the third quarter. Virtu Financial LLC now owns 20,053 shares of the company's stock worth $129,000 after buying an additional 4,210 shares during the last quarter. Electron Capital Partners LLC raised its stake in shares of Sigma Lithium by 0.4% in the second quarter. Electron Capital Partners LLC now owns 1,067,947 shares of the company's stock valued at $4,806,000 after buying an additional 4,557 shares during the period. Millennium Management LLC lifted its position in shares of Sigma Lithium by 6.4% during the 3rd quarter. Millennium Management LLC now owns 81,543 shares of the company's stock valued at $520,000 after buying an additional 4,909 shares during the last quarter. Finally, Legal & General Group Plc grew its stake in shares of Sigma Lithium by 0.5% during the 3rd quarter. Legal & General Group Plc now owns 1,312,232 shares of the company's stock worth $8,416,000 after acquiring an additional 7,157 shares during the period. 64.86% of the stock is owned by institutional investors.

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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