Sigma Lithium (NASDAQ:SGML) Trading 6.9% Higher - Time to Buy?

Key Points

• Sigma Lithium Corporation shares rose 6.9% on Monday, reaching a last traded price of $6.84, despite a significant decline in trading volume.
• Wall Street Zen downgraded Sigma Lithium from a "hold" to a "sell" rating following disappointing quarterly earnings, which showed a loss of ($0.17) per share, significantly missing analyst estimates.
• Institutional investors own 64.86% of Sigma Lithium's stock, with several hedge funds recently increasing their stakes in the company.

Sigma Lithium Corporation (NASDAQ:SGML - Get Free Report) traded up 6.9% on Monday . The stock traded as high as $6.74 and last traded at $6.84. 773,383 shares traded hands during trading, a decline of 46% from the average session volume of 1,441,345 shares. The stock had previously closed at $6.40.

Analyst Ratings Changes

SGML has been the topic of several recent analyst reports. Wall Street Zen cut Sigma Lithium from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. Cormark raised shares of Sigma Lithium to a "moderate buy" rating in a research note on Thursday. One analyst has rated the stock with a Buy rating, According to data from MarketBeat.com, the stock has an average rating of "Buy" and a consensus target price of $16.00.

Sigma Lithium Stock Performance

The firm has a market cap of $681.23 million, a PE ratio of -13.91 and a beta of 0.07. The company has a current ratio of 0.60, a quick ratio of 0.67 and a debt-to-equity ratio of 1.26. The stock's 50 day moving average price is $5.62 and its 200 day moving average price is $7.68.

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

Institutional Investors Weigh In On Sigma Lithium

Institutional investors have recently modified their holdings of the stock. JPMorgan Chase & Co. grew its stake in Sigma Lithium by 13,614.9% in the fourth quarter. JPMorgan Chase & Co. now owns 33,053 shares of the company's stock worth $371,000 after purchasing an additional 32,812 shares in the last quarter. XTX Topco Ltd bought a new position in Sigma Lithium during the 4th quarter worth approximately $233,000. Adage Capital Partners GP L.L.C. boosted its holdings in Sigma Lithium by 320.0% in the fourth quarter. Adage Capital Partners GP L.L.C. now owns 225,000 shares of the company's stock worth $2,524,000 after purchasing an additional 171,425 shares during the period. Boothbay Fund Management LLC boosted its holdings in shares of Sigma Lithium by 16.8% in the 4th quarter. Boothbay Fund Management LLC now owns 85,703 shares of the company's stock valued at $962,000 after buying an additional 12,308 shares during the period. Finally, Aquatic Capital Management LLC acquired a new position in Sigma Lithium in the fourth quarter valued at approximately $27,000. Institutional investors and hedge funds own 64.86% of the company's stock.

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.