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

Key Points

• Shares gapped up Monday, opening at $15.38 after a $14.85 close and last trading near $16.15 on volume of about 1.9 million shares.
• Analysts are mixed—three Buys, one Hold and two Sells—resulting in an average rating of "Hold" and an average price target of $18.50, with recent upgrades from BofA and Canaccord and an $18 target from BMO.
• Sigma missed quarterly expectations, reporting EPS of ($0.22) vs. an expected ($0.12) and revenue of $16.9M vs. $52.2M estimated, alongside negative margins and a -59.34% return on equity.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) shares gapped up before the market opened on Monday . The stock had previously closed at $14.85, but opened at $15.38. Sigma Lithium shares last traded at $16.1540, with a volume of 1,905,278 shares traded.

Analysts Set New Price Targets

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

Sigma Lithium Stock Performance

The company has a market cap of $1.84 billion, a P/E ratio of -36.42 and a beta of 0.04. The company has a 50 day moving average price of $12.54 and a 200-day moving average price of $10.81. The company has a quick ratio of 0.14, a current ratio of 0.25 and a debt-to-equity ratio of 0.26.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its quarterly earnings results on Monday, March 30th. The company reported ($0.22) earnings per share (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 business had revenue of $16.90 million during the quarter, compared to the consensus estimate of $52.20 million. Equities analysts expect that Sigma Lithium Corporation will post -0.12 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of SGML. Van ECK Associates Corp boosted its stake in Sigma Lithium by 142.8% during the third quarter. Van ECK Associates Corp now owns 4,606,668 shares of the company's stock valued at $29,529,000 after buying an additional 2,709,397 shares in the last quarter. Legal & General Group Plc boosted its stake in Sigma Lithium by 101.7% during the fourth quarter. Legal & General Group Plc now owns 2,647,004 shares of the company's stock valued at $34,911,000 after buying an additional 1,334,772 shares in the last quarter. Encompass Capital Advisors LLC bought a new position in Sigma Lithium during the fourth quarter valued at about $16,463,000. Handelsbanken Fonder AB bought a new position in Sigma Lithium during the third quarter valued at about $4,130,000. Finally, Woodline Partners LP boosted its stake in Sigma Lithium by 26.6% during the third quarter. Woodline Partners LP now owns 2,964,909 shares of the company's stock valued at $19,005,000 after buying an additional 623,832 shares in the last quarter. Institutional investors own 64.86% of the company's stock.

Sigma Lithium Company Profile

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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