Sigma Lithium (NASDAQ:SGML) Shares Down 12.5% – Here’s Why

Sigma Lithium Corporation (NASDAQ:SGML)’s stock price fell 12.5% during mid-day trading on Monday. The stock traded as low as $7.12 and last traded at $6.1260. 176,050 shares were traded during mid-day trading, a decline of 94% from the average session volume of 3,034,588 shares. The stock had previously closed at $7.00.

Wall Street Analyst Weigh In

A number of research firms recently commented on SGML. Zacks Research cut Sigma Lithium from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. JPMorgan Chase & Co. lowered Sigma Lithium from an “overweight” rating to a “neutral” rating and set a $11.00 price objective on the stock. in a research note on Friday, October 2nd. Wall Street Zen cut Sigma Lithium from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Weiss Ratings cut Sigma Lithium from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, August 13th. Finally, ATB Cormark Capital Markets upgraded Sigma Lithium from a “hold” rating to a “moderate buy” rating in a research note on Thursday, October 15th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Sigma Lithium currently has an average rating of “Hold” and a consensus price target of $14.30.

Sigma Lithium Stock Performance

The stock’s 50-day simple moving average is $9.54 and its 200-day simple moving average is $12.70. The stock has a market cap of $623.18 million, a price-to-earnings ratio of -23.04 and a beta of 0.74. The company has a current ratio of 0.34, a quick ratio of 0.25 and a debt-to-equity ratio of 1.25.

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

Institutional Trading of Sigma Lithium

Several large investors have recently modified their holdings of the stock. State of Wyoming acquired a new position in Sigma Lithium during the second quarter valued at approximately $109,000. Deutsche Bank AG acquired a new stake in shares of Sigma Lithium in the 2nd quarter valued at $116,000. Public Employees Retirement System of Ohio bought a new position in shares of Sigma Lithium in the 2nd quarter valued at $128,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new position in shares of Sigma Lithium in the 3rd quarter valued at $153,000. Finally, TD Waterhouse Canada Inc. increased its stake in shares of Sigma Lithium by 17.6% in the 3rd quarter. TD Waterhouse Canada Inc. now owns 28,939 shares of the company’s stock valued at $272,000 after purchasing an additional 4,334 shares during the last quarter. 64.86% of the stock is owned by institutional investors and hedge funds.

About Sigma Lithium

Sigma Lithium Corp. is a Canadian-based lithium development and mining company focused on producing battery-grade lithium concentrate in Brazil. The company’s principal asset is the Grota do Cirilo project in the Jequitinhonha Valley of Minas Gerais, one of Brazil’s established hard-rock lithium regions.

Grota do Cirilo includes the Xuxa mine and processing operations that produce lithium concentrate from spodumene-bearing ore. Sigma Lithium uses a dense-media separation process designed to recover lithium while minimizing the use of chemicals and water.