Sigma Lithium (NASDAQ:SGML) Trading Down 5.1% – Should You Sell?

Sigma Lithium Corporation (NASDAQ:SGML) shares fell 5.1% on Thursday . The company traded as low as $15.59 and last traded at $15.7440. 1,179,554 shares changed hands during trading, a decline of 74% from the average session volume of 4,616,104 shares. The stock had previously closed at $16.59.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. BMO Capital Markets restated an “outperform” rating and issued a $18.00 target price on shares of Sigma Lithium in a research note on Wednesday. Zacks Research raised Sigma Lithium from a “strong sell” rating to a “hold” rating in a report on Tuesday, November 25th. Bank of America reissued an “underperform” rating and issued a $13.00 price target (up previously from $11.00) on shares of Sigma Lithium in a research note on Thursday, January 8th. Weiss Ratings reissued a “sell (e+)” rating on shares of Sigma Lithium in a research note on Monday, December 29th. Finally, Canaccord Genuity Group downgraded Sigma Lithium from a “buy” rating to a “hold” rating and upped their target price for the stock from $14.00 to $20.50 in a report on Friday. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, Sigma Lithium currently has an average rating of “Reduce” and a consensus price target of $17.17.

Sigma Lithium Price Performance

The company has a current ratio of 0.49, a quick ratio of 0.32 and a debt-to-equity ratio of 1.38. The stock has a 50 day simple moving average of $11.49 and a 200-day simple moving average of $7.97. The firm has a market cap of $1.37 billion and a PE ratio of -39.58.

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

Hedge Funds Weigh In On Sigma Lithium

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Goldman Sachs Group Inc. raised its holdings in shares of Sigma Lithium by 9.4% in the first quarter. Goldman Sachs Group Inc. now owns 113,299 shares of the company’s stock worth $1,178,000 after buying an additional 9,748 shares during the last quarter. Aberdeen Group plc purchased a new position in Sigma Lithium in the 2nd quarter worth $187,000. Credit Industriel ET Commercial lifted its position in Sigma Lithium by 177.8% during the 2nd quarter. Credit Industriel ET Commercial now owns 250,000 shares of the company’s stock worth $1,125,000 after acquiring an additional 160,000 shares during the period. Levin Capital Strategies L.P. grew its stake in Sigma Lithium by 125.0% during the 2nd quarter. Levin Capital Strategies L.P. now owns 22,500 shares of the company’s stock valued at $101,000 after purchasing an additional 12,500 shares during the last quarter. Finally, Malaga Cove Capital LLC acquired a new position in shares of Sigma Lithium in the second quarter valued at about $52,000. Hedge funds and other institutional investors 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.