Sigma Lithium (NASDAQ:SGML) Shares Gap Up – Should You Buy?

Sigma Lithium Corporation (NASDAQ:SGML)’s stock price gapped up before the market opened on Friday . The stock had previously closed at $12.54, but opened at $14.45. Sigma Lithium shares last traded at $14.6020, with a volume of 2,454,945 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on SGML shares. Citigroup cut shares of Sigma Lithium from an “overweight” rating to an “underperform” rating in a research report on Thursday, January 8th. Zacks Research raised Sigma Lithium from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 25th. BMO Capital Markets reiterated an “outperform” rating and issued a $18.00 price objective on shares of Sigma Lithium in a report on Wednesday, January 14th. Bank of America reissued an “underperform” rating and set a $13.00 target price (up from $11.00) on shares of Sigma Lithium in a research note on Thursday, January 8th. Finally, Canaccord Genuity Group downgraded Sigma Lithium from a “buy” rating to a “hold” rating and upped their target price for the company from $14.00 to $20.50 in a report on Friday, January 16th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Sigma Lithium presently has a consensus rating of “Reduce” and a consensus target price of $17.17.

Sigma Lithium Trading Up 18.5%

The firm has a market capitalization of $1.65 billion and a PE ratio of -48.32. The stock’s fifty day simple moving average is $12.04 and its 200 day simple moving average is $8.19. The company has a quick ratio of 0.32, a current ratio of 0.49 and a debt-to-equity ratio of 1.38.

Sigma Lithium (NASDAQ:SGML) last announced its quarterly earnings data on Friday, November 14th. The company reported ($0.10) earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of ($0.10). The firm had revenue of $28.55 million during the quarter, compared to analysts’ expectations of $70.54 million. Sigma Lithium had a negative net margin of 24.13% and a negative return on equity of 35.97%. On average, sell-side analysts predict that Sigma Lithium Corporation will post -0.12 earnings per share for the current year.

Institutional Trading of Sigma Lithium

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Waratah Capital Advisors Ltd. increased its stake in Sigma Lithium by 93.0% in the second quarter. Waratah Capital Advisors Ltd. now owns 227,330 shares of the company’s stock worth $1,023,000 after purchasing an additional 109,530 shares during the period. CenterBook Partners LP lifted its holdings in Sigma Lithium by 416.8% during the second quarter. CenterBook Partners LP now owns 816,515 shares of the company’s stock worth $3,674,000 after buying an additional 658,533 shares during the period. Aberdeen Group plc bought a new stake in Sigma Lithium during the second quarter valued at about $187,000. Monaco Asset Management SAM bought a new position in shares of Sigma Lithium during the 2nd quarter worth approximately $225,000. Finally, Credit Industriel ET Commercial lifted its holdings in shares of Sigma Lithium by 177.8% during the 2nd quarter. Credit Industriel ET Commercial now owns 250,000 shares of the company’s stock valued at $1,125,000 after purchasing an additional 160,000 shares during the last quarter. Hedge funds and other 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.