Sigma Lithium (NASDAQ:SGML) Shares Gap Up - Still a Buy?

Key Points

• Sigma Lithium's stock opened at $5.70 after closing at $5.41, indicating positive market movement.
• Equities analysts have mixed ratings for Sigma Lithium, with a "moderate buy" from Cormark and a "sell" from Wall Street Zen, while Bank of America sets a target price of $12.00.
• The company's recent earnings report showed a loss of ($0.17) EPS, significantly below analysts' expectations of ($0.03), with revenues of $16.89 million reported against estimates of $50.44 million.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $5.41, but opened at $5.70. Sigma Lithium shares last traded at $5.70, with a volume of 375,521 shares changing hands.

Wall Street Analyst Weigh In

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

Sigma Lithium Price Performance

The company's 50-day moving average price is $6.06 and its two-hundred day moving average price is $7.02. The company has a market cap of $674.54 million, a P/E ratio of -13.77 and a beta of 0.09. The company has a current ratio of 0.60, a quick ratio of 0.39 and a debt-to-equity ratio of 1.26.

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

Hedge Funds Weigh In On Sigma Lithium

Several institutional investors have recently made changes to their positions in SGML. Northern Trust Corp grew its holdings in shares of Sigma Lithium by 40.4% during the fourth quarter. Northern Trust Corp now owns 124,554 shares of the company's stock valued at $1,397,000 after purchasing an additional 35,848 shares during the last quarter. BNP Paribas Financial Markets bought a new position in shares of Sigma Lithium during the fourth quarter worth about $185,000. Squarepoint Ops LLC bought a new position in shares of Sigma Lithium during the fourth quarter worth about $150,000. Woodline Partners LP grew its position in shares of Sigma Lithium by 113.5% during the fourth quarter. Woodline Partners LP now owns 1,617,673 shares of the company's stock worth $18,150,000 after acquiring an additional 859,924 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC bought a new position in Sigma Lithium in the 4th quarter worth about $498,000. 64.86% of the stock is owned by institutional investors.

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.