Sigma Lithium (NASDAQ:SGML) Stock Falls 8.3% – Here’s Why

Sigma Lithium Corporation (NASDAQ:SGML)’s share price was down 8.3% during trading on Tuesday. The company traded as low as $5.45 and last traded at $5.4540. 616,915 shares were traded during trading, a decline of 80% from the average daily volume of 3,122,740 shares. The stock had previously closed at $5.95.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on SGML shares. Wall Street Zen cut Sigma Lithium from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. BMO Capital Markets cut Sigma Lithium from an “outperform” rating to a “market perform” rating and set a $10.00 price target for the company. in a research report on Thursday, October 1st. ATB Cormark Capital Markets raised Sigma Lithium from a “hold” rating to a “moderate buy” rating in a research report on Thursday, October 15th. JPMorgan Chase & Co. downgraded Sigma Lithium from an “overweight” rating to a “neutral” rating and set a $11.00 price target for the company. in a research note on Friday, October 2nd. Finally, Zacks Research lowered Sigma Lithium from a “hold” rating to a “strong sell” rating in a research report on Wednesday, August 19th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $14.30.

Sigma Lithium Price Performance

The company has a market capitalization of $589.93 million, a P/E ratio of -21.94 and a beta of 0.74. The company’s 50-day moving average price is $9.01 and its two-hundred day moving average price is $12.55. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.34 and a quick ratio of 0.25.

Sigma Lithium (NASDAQ:SGML) last posted its earnings results on Friday, August 14th. The company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.23 by ($0.25). The firm had revenue of $54.70 million during the quarter, compared to analyst estimates of $68.34 million. Sigma Lithium had a negative net margin of 19.36% and a negative return on equity of 37.40%. As a group, sell-side analysts expect that Sigma Lithium Corporation will post 0.14 EPS for the current year.

Hedge Funds Weigh In On Sigma Lithium

Hedge funds and other institutional investors have recently modified their holdings of the business. Handelsbanken Fonder AB raised its stake in shares of Sigma Lithium by 23.2% during the second quarter. Handelsbanken Fonder AB now owns 1,498,133 shares of the company’s stock valued at $18,951,000 after acquiring an additional 282,595 shares during the last quarter. GSA Capital Partners LLP bought a new stake in shares of Sigma Lithium in the second quarter worth $2,512,000. Bank of America Corp DE grew its stake in shares of Sigma Lithium by 138.4% in the first quarter. Bank of America Corp DE now owns 288,418 shares of the company’s stock worth $3,559,000 after purchasing an additional 167,443 shares during the last quarter. Squarepoint Ops LLC bought a new stake in shares of Sigma Lithium in the second quarter worth $1,462,000. Finally, The Manufacturers Life Insurance Company acquired a new stake in Sigma Lithium in the second quarter valued at $2,989,000. Institutional investors own 64.86% of the company’s stock.

Sigma Lithium Company Profile

Sigma Lithium is a Canadian mining company focused on developing and producing lithium for the electric-vehicle and energy-storage industries. Its principal asset is the Grota do Cirilo hard-rock lithium project in Minas Gerais, Brazil. The company produces lithium concentrate from spodumene ore at its Brazilian operations, supplying material used in the lithium-ion battery supply chain. Sigma began commercial production at Grota do Cirilo in 2023. Sigma Lithium has emphasized more sustainable production practices at the project, including processing methods designed to reduce water use and avoid conventional tailings dams.