Wall Street Zen Downgrades Sigma Lithium (NASDAQ:SGML) to Hold

Key Points

• Wall Street Zen downgraded Sigma Lithium from “Buy” to “Hold,” following a separate Zacks Research downgrade. MarketBeat reports a consensus “Hold” rating and an average price target of $18.50.
• Shares rose 5.6% and opened at $11.38, but the company continues to show weak fundamentals, including a negative 41.84% net margin, negative 57.50% return on equity, and quarterly revenue of $16.9 million versus $42.48 million expected.
• Institutional investors own 64.86% of Sigma Lithium, which is developing its Grota do Cirilo lithium project in Brazil to produce battery-grade lithium for electric vehicles and energy storage.

Sigma Lithium (NASDAQ:SGML - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a note issued to investors on Saturday.

SGML has been the subject of a number of other reports. Zacks Research downgraded shares of Sigma Lithium from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Weiss Ratings raised Sigma Lithium from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, July 29th. 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. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $18.50.

Sigma Lithium Stock Up 5.6%

SGML stock opened at $11.38 on Friday. Sigma Lithium has a fifty-two week low of $4.61 and a fifty-two week high of $24.48. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.32 and a quick ratio of 0.25. The stock has a market capitalization of $1.28 billion, a price-to-earnings ratio of -29.18 and a beta of 0.61. The business's fifty day moving average price is $12.23 and its two-hundred day moving average price is $13.91.

Sigma Lithium (NASDAQ:SGML - Get Free Report) last announced its earnings results on Friday, May 15th. The company reported $0.10 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.10. Sigma Lithium had a negative net margin of 41.84% and a negative return on equity of 57.50%. The company had revenue of $16.90 million during the quarter, compared to analysts' expectations of $42.48 million. On average, equities analysts anticipate that Sigma Lithium will post 1.15 earnings per share for the current year.

Hedge Funds Weigh In On Sigma Lithium

Several institutional investors and hedge funds have recently added to or reduced their stakes in SGML. Farther Finance Advisors LLC bought a new stake in shares of Sigma Lithium during the fourth quarter worth $51,000. GF Fund Management CO. LTD. acquired a new position in shares of Sigma Lithium during the fourth quarter worth $57,000. BTG Pactual Asset Management US LLC bought a new position in shares of Sigma Lithium in the 3rd quarter valued at $71,000. Quantbot Technologies LP acquired a new stake in shares of Sigma Lithium during the 3rd quarter valued at $82,000. Finally, Nebula Research & Development LLC acquired a new stake in shares of Sigma Lithium during the 2nd quarter valued at $87,000. Institutional investors own 64.86% of the company's stock.

Sigma Lithium Company Profile

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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