Sigma Lithium (NASDAQ:SGML) Trading Down 7.1% - Here's Why

Key Points

• Shares fell 7.1% to about $19.22 on Friday with roughly 3.23 million shares traded (down ~26% from average); the company has a market cap near $2.2 billion.
• Analyst sentiment is mixed — MarketBeat shows a consensus "Hold" with a $18.50 price target and a split of three Buys, one Hold and two Sells, amid several recent upgrades and downgrades.
• Sigma missed quarterly expectations, reporting EPS of -$0.22 vs. -$0.12 expected and revenue $16.9M vs. $52.2M expected, alongside weak liquidity (quick ratio 0.14, current ratio 0.25) and negative margins/ROE.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report)'s share price dropped 7.1% on Friday . The stock traded as low as $18.99 and last traded at $19.2210. Approximately 3,230,810 shares were traded during mid-day trading, a decline of 26% from the average daily volume of 4,339,940 shares. The stock had previously closed at $20.70.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the company. Canaccord Genuity Group raised Sigma Lithium from a "hold" rating to a "buy" rating in a research report on Friday, January 23rd. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Sigma Lithium in a report on Friday, March 27th. Wall Street Zen upgraded shares of Sigma Lithium from a "sell" rating to a "hold" rating in a research report on Saturday, April 4th. Citigroup downgraded shares of Sigma Lithium from an "overweight" rating to an "underperform" rating in a research report on Thursday, January 8th. Finally, Bank of America raised shares of Sigma Lithium from a "neutral" rating to a "buy" rating and upped their target price for the company from $14.00 to $17.00 in a report on Thursday, April 2nd. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Sigma Lithium presently has a consensus rating of "Hold" and a consensus price target of $18.50.

Sigma Lithium Trading Down 4.7%

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 company has a market cap of $2.20 billion, a price-to-earnings ratio of -43.82 and a beta of 0.04. The firm has a 50 day moving average price of $13.09 and a two-hundred day moving average price of $11.07.

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 the consensus estimate 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 company had revenue of $16.90 million during the quarter, compared to the consensus estimate of $52.20 million. As a group, equities analysts forecast that Sigma Lithium Corporation will post -0.12 earnings per share for the current year.

Hedge Funds Weigh In On Sigma Lithium

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Farther Finance Advisors LLC bought a new stake in Sigma Lithium during the fourth quarter valued at $51,000. GF Fund Management CO. LTD. acquired a new position in shares of Sigma Lithium in the 4th quarter valued at about $57,000. Deutsche Bank AG bought a new stake in shares of Sigma Lithium during the 4th quarter valued at about $101,000. BTG Pactual Asset Management US LLC acquired a new stake in Sigma Lithium during the third quarter worth approximately $71,000. Finally, Quantbot Technologies LP acquired a new stake in Sigma Lithium during the third quarter worth approximately $82,000. 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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