Sigma Lithium (NASDAQ:SGML) Shares Down 12.4% – Should You Sell?

Sigma Lithium Corporation (NASDAQ:SGML)’s share price dropped 12.4% on Friday . The stock traded as low as $14.28 and last traded at $14.2080. Approximately 1,996,427 shares were traded during mid-day trading, a decline of 57% from the average daily volume of 4,696,653 shares. The stock had previously closed at $16.22.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on SGML shares. Zacks Research raised shares of Sigma Lithium from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 25th. Canaccord Genuity Group raised Sigma Lithium from a “hold” rating to a “buy” rating in a research report on Friday, January 23rd. BMO Capital Markets reiterated an “outperform” rating and set a $18.00 price objective on shares of Sigma Lithium in a report on Wednesday, January 14th. Citigroup downgraded Sigma Lithium from an “overweight” rating to an “underperform” rating in a research report on Thursday, January 8th. Finally, Bank of America raised shares of Sigma Lithium from an “underperform” rating to a “neutral” rating and set a $14.00 price target for the company in a research note on Tuesday, February 3rd. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Sigma Lithium currently has an average rating of “Hold” and an average target price of $17.50.

Sigma Lithium Price Performance

The company has a quick ratio of 0.32, a current ratio of 0.49 and a debt-to-equity ratio of 1.38. The business has a fifty day moving average of $13.42 and a 200 day moving average of $9.41. The firm has a market cap of $1.64 billion and a P/E ratio of -46.92.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SGML. Van ECK Associates Corp increased its position in Sigma Lithium by 142.8% during the 3rd quarter. Van ECK Associates Corp now owns 4,606,668 shares of the company’s stock worth $29,529,000 after buying an additional 2,709,397 shares during the period. Woodline Partners LP boosted its position in shares of 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 period. Legal & General Group Plc grew its stake in shares of Sigma Lithium by 101.7% in the fourth quarter. Legal & General Group Plc now owns 2,647,004 shares of the company’s stock valued at $34,911,000 after acquiring an additional 1,334,772 shares in the last quarter. Norges Bank bought a new position in Sigma Lithium during the second quarter worth about $11,250,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Sigma Lithium by 24.9% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,550,713 shares of the company’s stock worth $7,091,000 after purchasing an additional 309,338 shares in the last quarter. 64.86% of the stock is owned by institutional investors and hedge funds.

Sigma Lithium Company Profile

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.