Sigma Lithium (NASDAQ:SGML) Shares Up 8.1% - Time to Buy?

Key Points

• Shares jumped 8.1% to $11.60 in mid-day trading, though volume was 94% below the stock’s average daily volume.
• Analyst sentiment is mixed, with three Buy and three Sell ratings; the consensus rating is Hold, with an $18.50 price target.
• Recent quarterly results were weaker than expected: Sigma Lithium reported a $0.02 loss per share versus expectations for $0.23 in earnings, while revenue of $54.7 million trailed the $68.34 million estimate.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s share price rose 8.1% during mid-day trading on Friday . The stock traded as high as $11.78 and last traded at $11.60. Approximately 214,215 shares changed hands during mid-day trading, a decline of 94% from the average daily volume of 3,351,407 shares. The stock had previously closed at $10.73.

Analyst Upgrades and Downgrades

SGML has been the subject of several research analyst reports. Weiss Ratings lowered Sigma Lithium from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, August 13th. Wall Street Zen downgraded shares of Sigma Lithium from a "buy" rating to a "hold" rating in a research report on Saturday, August 8th. Finally, Zacks Research lowered shares of Sigma Lithium from a "hold" rating to a "strong sell" rating in a research note on Wednesday. Three investment analysts have rated the stock with a Buy rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $18.50.

Sigma Lithium Stock Up 9.1%

The stock's fifty day moving average price is $11.66 and its 200-day moving average price is $13.83. The company has a quick ratio of 0.25, a current ratio of 0.34 and a debt-to-equity ratio of 1.25. The company has a market capitalization of $1.32 billion, a price-to-earnings ratio of -48.79 and a beta of 0.61.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last released its earnings results on Friday, August 14th. The company reported ($0.02) earnings per share for the quarter, missing analysts' consensus estimates of $0.23 by ($0.25). Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. The business had revenue of $54.70 million during the quarter, compared to the consensus estimate of $68.34 million. On average, sell-side analysts predict that Sigma Lithium Corporation will post 0.45 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sigma Lithium

Several large investors have recently made changes to their positions in the stock. BNP Paribas Financial Markets lifted its position 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 valued at $99,000 after acquiring an additional 3,005 shares during the period. Banque Cantonale Vaudoise increased its position in shares of Sigma Lithium by 6.8% in the first quarter. Banque Cantonale Vaudoise now owns 55,143 shares of the company's stock worth $679,000 after purchasing an additional 3,489 shares during the period. Farther Finance Advisors LLC acquired a new position in Sigma Lithium in the fourth quarter valued at about $51,000. Virtu Financial LLC lifted its position in Sigma Lithium by 26.6% during the third quarter. Virtu Financial LLC now owns 20,053 shares of the company's stock worth $129,000 after purchasing an additional 4,210 shares during the period. Finally, Millennium Management LLC grew its stake in Sigma Lithium by 6.4% during the third quarter. Millennium Management LLC now owns 81,543 shares of the company's stock worth $520,000 after buying an additional 4,909 shares in the last quarter. Institutional investors and hedge funds 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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