Sigma Lithium (NASDAQ:SGML) Trading 7.6% Higher - Still a Buy?

Key Points

• Shares jumped 7.6% to $22.18 on Wednesday despite light volume, leaving the stock trading above the average analyst price target of $18.50.
• Sigma's latest quarter missed big—EPS of ($0.22) vs. ($0.12) expected and revenue $16.9M vs. $52.2M expected—resulting in a negative net margin (45.64%) and negative return on equity.
• Analyst coverage is mixed (three Buy, one Hold, two Sell) with a consensus rating of Hold, and institutional investors own roughly 64.9% of the shares with several funds recently increasing positions.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) shares traded up 7.6% on Wednesday . The company traded as high as $21.89 and last traded at $22.1790. 1,347,102 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 4,222,645 shares. The stock had previously closed at $20.61.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the stock. Canaccord Genuity Group raised shares of Sigma Lithium from a "hold" rating to a "buy" rating in a research report on Friday, January 23rd. Weiss Ratings reissued a "sell (e+)" rating on shares of Sigma Lithium in a research report on Friday, March 27th. Wall Street Zen raised shares of Sigma Lithium from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. BMO Capital Markets reissued an "outperform" rating and issued a $18.00 price target on shares of Sigma Lithium in a research report on Wednesday, January 14th. Finally, Citigroup cut shares of Sigma Lithium from an "overweight" rating to an "underperform" rating in a research report on Thursday, January 8th. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $18.50.

Sigma Lithium Stock Up 5.9%

The business's fifty day moving average price is $14.35 and its 200 day moving average price is $11.90. The company has a quick ratio of 0.14, a current ratio of 0.25 and a debt-to-equity ratio of 0.26. The firm has a market capitalization of $2.43 billion, a PE ratio of -48.60 and a beta of 0.04.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last announced its earnings results on Monday, March 30th. The company reported ($0.22) EPS for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.10). Sigma Lithium had a negative net margin of 45.64% and a negative return on equity of 59.34%. The business had revenue of $16.90 million during the quarter, compared to analysts' expectations of $52.20 million. On average, equities research analysts forecast that Sigma Lithium Corporation will post 0.91 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Sigma Lithium

A number of institutional investors and hedge funds have recently made changes to their positions in SGML. Goldman Sachs Group Inc. raised its holdings in shares of Sigma Lithium by 9.4% in the first quarter. Goldman Sachs Group Inc. now owns 113,299 shares of the company's stock valued at $1,178,000 after buying an additional 9,748 shares during the last quarter. Invesco Ltd. raised its holdings in shares of Sigma Lithium by 22.2% in the second quarter. Invesco Ltd. now owns 899,945 shares of the company's stock valued at $4,050,000 after buying an additional 163,335 shares during the last quarter. Marshall Wace LLP purchased a new stake in shares of Sigma Lithium in the second quarter valued at about $560,000. Jump Financial LLC purchased a new stake in shares of Sigma Lithium in the second quarter valued at about $131,000. Finally, Nebula Research & Development LLC purchased a new stake in shares of Sigma Lithium in the second quarter valued at about $87,000. 64.86% of the stock is owned by hedge funds and other 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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