Sigma Lithium (NASDAQ:SGML) Shares Down 6.3% – Here’s Why

Sigma Lithium Corporation (NASDAQ:SGML) shares dropped 6.3% during trading on Wednesday. The stock traded as low as $8.02 and last traded at $7.9240. 352,700 shares were traded during trading, a decline of 89% from the average daily volume of 3,092,967 shares. The stock had previously closed at $8.46.

Analyst Ratings Changes

SGML has been the topic of a number of recent research reports. Weiss Ratings downgraded Sigma Lithium from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, August 13th. Zacks Research downgraded Sigma Lithium from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. BMO Capital Markets downgraded shares of Sigma Lithium from an “outperform” rating to a “market perform” rating and set a $10.00 price objective on the stock. in a report on Thursday, October 1st. ATB Cormark Capital Markets cut Sigma Lithium from a “moderate buy” rating to a “hold” rating and lowered their target price for the stock from $19.50 to $13.00 in a report on Friday, October 2nd. Finally, JPMorgan Chase & Co. lowered shares of Sigma Lithium from an “overweight” rating to a “neutral” rating and set a $11.00 price target on the stock. in a research report on Friday, October 2nd. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, Sigma Lithium presently has a consensus rating of “Reduce” and an average target price of $14.30.

Sigma Lithium Stock Down 4.4%

The business has a 50 day moving average of $10.39 and a 200-day moving average of $13.22. The company has a current ratio of 0.34, a quick ratio of 0.25 and a debt-to-equity ratio of 1.25. The stock has a market cap of $911.10 million, a PE ratio of -33.73 and a beta of 0.67.

Sigma Lithium (NASDAQ:SGML) last posted its quarterly earnings data on Friday, August 14th. The company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of $0.23 by ($0.25). The firm had revenue of $54.70 million during the quarter, compared to analysts’ expectations of $68.34 million. Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. Equities research analysts predict that Sigma Lithium Corporation will post 0.15 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of SGML. BlackRock Inc. purchased a new position in Sigma Lithium in the second quarter valued at approximately $29,727,000. SIR Capital Management L.P. bought a new stake in shares of Sigma Lithium during the 2nd quarter valued at about $4,754,000. Ariose Capital Management Ltd acquired a new stake in shares of Sigma Lithium in the 1st quarter worth about $3,826,000. Handelsbanken Fonder AB lifted its holdings in Sigma Lithium by 23.2% in the second quarter. Handelsbanken Fonder AB now owns 1,498,133 shares of the company’s stock worth $18,951,000 after purchasing an additional 282,595 shares during the period. Finally, Legal & General Group Plc acquired a new stake in shares of Sigma Lithium in the second quarter valued at $3,285,000. 64.86% of the stock is currently owned by hedge funds and other institutional investors.

Sigma Lithium Company Profile

Sigma Lithium Corporation is a Canadian mining and development company focused on producing lithium concentrate for the electric vehicle and energy storage industries. Its primary asset is the Grota do Cirilo project in Minas Gerais, Brazil, which includes hard-rock lithium deposits, mining operations and a processing facility.

The company produces lithium concentrate designed for use in lithium-ion batteries. Its processing approach emphasizes the recovery of lithium-bearing material while seeking to reduce the use of hazardous chemicals and minimize environmental impacts.