Sigma Lithium (NASDAQ:SGML) Stock Price Down 7.4% – Time to Sell?

Sigma Lithium Corporation (NASDAQ:SGML)’s share price dropped 7.4% during trading on Wednesday . The stock traded as low as $12.61 and last traded at $12.47. Approximately 2,453,808 shares were traded during trading, a decline of 57% from the average daily volume of 5,671,054 shares. The stock had previously closed at $13.47.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Zacks Research raised Sigma Lithium from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 25th. Canaccord Genuity Group upgraded shares of Sigma Lithium from a “hold” rating to a “buy” rating in a research note on Friday. BMO Capital Markets reissued an “outperform” rating and set a $18.00 target price on shares of Sigma Lithium in a research note on Wednesday, January 14th. Citigroup cut shares of Sigma Lithium from an “overweight” rating to an “underperform” rating in a report on Thursday, January 8th. Finally, Bank of America reiterated an “underperform” rating and set a $13.00 price objective (up previously from $11.00) on shares of Sigma Lithium in a report on Thursday, January 8th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $17.17.

Sigma Lithium Trading Up 17.5%

The firm has a market cap of $1.64 billion and a price-to-earnings ratio of -47.55. The firm’s 50-day moving average is $12.21 and its 200-day moving average is $8.25. The company has a current ratio of 0.49, a quick ratio of 0.32 and a debt-to-equity ratio of 1.38.

Sigma Lithium (NASDAQ:SGML) last released its quarterly earnings data on Friday, November 14th. The company reported ($0.10) earnings per share for the quarter, hitting the consensus estimate of ($0.10). The firm had revenue of $28.55 million for the quarter, compared to the consensus estimate of $70.54 million. Sigma Lithium had a negative net margin of 24.13% and a negative return on equity of 35.97%. As a group, sell-side analysts anticipate that Sigma Lithium Corporation will post -0.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Sigma Lithium

Hedge funds have recently added to or reduced their stakes in the stock. Farther Finance Advisors LLC bought a new stake in Sigma Lithium during the 4th quarter worth approximately $51,000. Malaga Cove Capital LLC bought a new stake in Sigma Lithium during the second quarter worth $52,000. BTG Pactual Asset Management US LLC bought a new stake in Sigma Lithium during the third quarter worth $71,000. Quantbot Technologies LP purchased a new stake in Sigma Lithium in the 3rd quarter valued at $82,000. Finally, Hunting Hill Global Capital LLC bought a new position in Sigma Lithium during the 2nd quarter valued at $86,000. Institutional investors and hedge funds own 64.86% of the company’s stock.

About Sigma Lithium

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.