Sigma Lithium (NASDAQ:SGML) Trading Up 8.5% – Should You Buy?

Shares of Sigma Lithium Corporation (NASDAQ:SGML) shot up 8.5% during mid-day trading on Tuesday . The stock traded as high as $12.96 and last traded at $13.3170. 1,383,259 shares changed hands during trading, a decline of 75% from the average session volume of 5,557,320 shares. The stock had previously closed at $12.27.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SGML. Weiss Ratings reiterated a “sell (e+)” rating on shares of Sigma Lithium in a research report on Monday, December 29th. 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. BMO Capital Markets reissued an “outperform” rating and issued a $18.00 price target on shares of Sigma Lithium in a report on Wednesday, January 14th. Citigroup downgraded shares of Sigma Lithium from an “overweight” rating to an “underperform” rating in a report on Thursday, January 8th. Finally, Canaccord Genuity Group lowered shares of Sigma Lithium from a “buy” rating to a “hold” rating and lifted their target price for the company from $14.00 to $20.50 in a research report on Friday. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, Sigma Lithium presently has a consensus rating of “Reduce” and a consensus target price of $17.17.

Sigma Lithium Price Performance

The stock’s fifty day moving average price is $11.62 and its 200-day moving average price is $8.07. The company has a debt-to-equity ratio of 1.38, a current ratio of 0.49 and a quick ratio of 0.32. The firm has a market cap of $1.50 billion and a PE ratio of -43.45.

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

Institutional Investors Weigh In On Sigma Lithium

Hedge funds have recently modified their holdings of the company. Van ECK Associates Corp raised its stake in Sigma Lithium by 142.8% during the third quarter. Van ECK Associates Corp now owns 4,606,668 shares of the company’s stock worth $29,529,000 after purchasing an additional 2,709,397 shares during the period. Norges Bank acquired a new stake in shares of Sigma Lithium during the 2nd quarter worth approximately $11,250,000. CenterBook Partners LP raised its position in shares of Sigma Lithium by 416.8% during the 2nd quarter. CenterBook Partners LP now owns 816,515 shares of the company’s stock valued at $3,674,000 after buying an additional 658,533 shares during the period. Handelsbanken Fonder AB acquired a new position in Sigma Lithium in the third quarter valued at approximately $4,130,000. Finally, Woodline Partners LP lifted its holdings in Sigma Lithium by 26.6% in the third quarter. Woodline Partners LP now owns 2,964,909 shares of the company’s stock valued at $19,005,000 after acquiring an additional 623,832 shares during the last quarter. 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.