Sigma Lithium (NASDAQ:SGML) Trading Up 6.9% - Should You 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) shares rose 6.9% on Monday . The company traded as high as $6.74 and last traded at $6.84. Approximately 773,383 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 1,441,345 shares. The stock had previously closed at $6.40.

Wall Street Analyst Weigh In

Separately, Wall Street Zen cut Sigma Lithium from a "hold" rating to a "sell" rating in a research report on Saturday.

Sigma Lithium Price Performance

The stock's 50-day simple moving average is $5.54 and its two-hundred day simple moving average is $7.82. The company has a market capitalization of $719.62 million, a price-to-earnings ratio of -14.81 and a beta of 0.07. The company has a quick ratio of 0.67, a current ratio of 0.85 and a debt-to-equity ratio of 1.08.

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 (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.14). Sigma Lithium had a negative return on equity of 45.84% and a negative net margin of 35.69%. The firm had revenue of $16.89 million during the quarter, compared to analyst estimates of $50.44 million. Equities research analysts predict that Sigma Lithium Corporation will post -0.12 earnings per share for the current year.

Institutional Trading of Sigma Lithium

A number of hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC acquired a new stake in shares of Sigma Lithium in the first quarter valued at approximately $139,000. Alliancebernstein L.P. increased its stake in shares of Sigma Lithium by 10.9% in the 4th quarter. Alliancebernstein L.P. now owns 17,390 shares of the company's stock worth $195,000 after acquiring an additional 1,710 shares during the last quarter. Aquatic Capital Management LLC purchased a new position in shares of Sigma Lithium during the 4th quarter worth $27,000. BNP Paribas Financial Markets boosted 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 last quarter. Finally, CenterBook Partners LP grew its stake in shares of Sigma Lithium by 3.0% in the 1st quarter. CenterBook Partners LP now owns 157,982 shares of the company's stock valued at $1,643,000 after buying an additional 4,530 shares during the period. 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.

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