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

Shares of Sigma Lithium Corporation (NASDAQ:SGML) gapped down before the market opened on Monday . The stock had previously closed at $16.82, but opened at $16.08. Sigma Lithium shares last traded at $14.8290, with a volume of 2,347,490 shares trading hands.

Analysts Set New Price Targets

Several brokerages have issued reports on SGML. Canaccord Genuity Group raised shares of Sigma Lithium from a “hold” rating to a “buy” rating in a research note on Friday, January 23rd. Bank of America raised shares of Sigma Lithium from a “neutral” rating to a “buy” rating and raised their price objective for the stock from $14.00 to $17.00 in a research note on Thursday, April 2nd. Weiss Ratings reissued a “sell (e+)” rating on shares of Sigma Lithium in a research note on Friday, March 27th. Finally, Wall Street Zen raised shares of Sigma Lithium from a “sell” rating to a “hold” rating in a research note on Saturday, April 4th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $18.50.

Sigma Lithium Stock Down 14.0%

The company has a debt-to-equity ratio of 0.26, a current ratio of 0.25 and a quick ratio of 0.14. The stock has a market cap of $1.61 billion, a PE ratio of -37.08 and a beta of 0.64. The business has a fifty day moving average of $15.91 and a 200-day moving average of $13.02.

Sigma Lithium (NASDAQ:SGML) last announced its quarterly earnings results on Friday, May 15th. The company reported $0.10 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $0.10. The firm had revenue of $42.34 million during the quarter, compared to analyst estimates of $42.48 million. Sigma Lithium had a negative return on equity of 56.56% and a negative net margin of 41.84%. Equities research analysts anticipate that Sigma Lithium Corporation will post 0.92 earnings per share for the current year.

Hedge Funds Weigh In On Sigma Lithium

Large investors have recently bought and sold shares of the business. Old West Investment Management LLC raised its stake in Sigma Lithium by 1,163.3% in the third quarter. Old West Investment Management LLC now owns 651,892 shares of the company’s stock worth $4,179,000 after buying an additional 600,291 shares in the last quarter. Van ECK Associates Corp raised its stake in Sigma Lithium by 142.8% in the third 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 in the last quarter. Handelsbanken Fonder AB bought a new position in Sigma Lithium in the third quarter worth approximately $4,130,000. Alps Advisors Inc. raised its stake in Sigma Lithium by 37.1% in the third quarter. Alps Advisors Inc. now owns 269,446 shares of the company’s stock worth $1,727,000 after buying an additional 72,979 shares in the last quarter. Finally, Waratah Capital Advisors Ltd. raised its stake in Sigma Lithium by 30.4% in the third quarter. Waratah Capital Advisors Ltd. now owns 296,330 shares of the company’s stock worth $1,899,000 after buying an additional 69,000 shares in the last quarter. Institutional investors own 64.86% of the company’s stock.

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.