Below we presented the list of top five cannabis stocks to buy now. To read our detailed discussion and see a more comprehensive ranking of the weed stocks please see Top 10 Cannabis Stocks to Buy Now.
5. Canopy Growth Corporation (NASDAQ:CGC)
Canopy Growth Corporation (NASDAQ:CGC) leads our list of top five most popular cannabis stocks among hedge funds, as nine funds disclosed stakes worth $19.07 million in total, down from 11 funds the previous quarter.
Canopy Growth Corporation (NASDAQ:CGC) is one of the largest cannabis companies in the world and is highly diversified covering not just recreational and medical cannabis flower segments, but also hemp, CBD, beverages, edibles and vaporizers. The company has also entered into several important partnerships with Constellation Brands, Inc. (NYSE:STZ), Snoop Dogg, Seth Rogen, and Martha Stewart. In September, Canopy Growth Corporation (NASDAQ:CGC) launched Martha Stewart branded CBD gummies, oil, and gel on the US market and has been expanding the distribution network in the US.
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4. Aurora Cannabis Inc (NYSE:ACB)
In Aurora Cannabis Inc (NYSE:ACB), 10 investors from our database disclosed long positions as of the end of September, unchanged over the quarter. However, the aggregate value of their holdings slid to $9.22 million from $42.33 million.
Beside the fact that some investors unloaded their positions over the course of the third quarter, the drop in total value of funds holdings can also be attributed to a 62% drop the stock registered between July and September. To address its financial issues, Aurora Cannabis Inc (NYSE:ACB) has embarked on a restructuring in June. The company planned cuts in SG&A and production staff. It also announced changes at production facilities in Canada, as it plans to scale down most if its production to better align with demand.
On the other hand, Aurora Cannabis Inc (NYSE:ACB) planned to increase production at its Nordic facility in Europe to supply the European market, but also said it would close some offices and reduce the number of employees on the Continent.
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3. Cronos Group Inc (NASDAQ:CRON)
Cronos Group Inc (NASDAQ:CRON) is the third most popular weed stock in our list and the last of cannabis producers. At the end of September, ten funds we are following disclosed holding in aggregate $60 million worth of Cronos' stock, down from 14 funds and $82.77 million a quarter earlier. The bulk of the shares was disclosed by Traci Lerner's Chescapmanager, which owns 8.87 million shares worth $44.46 million as per its latest 13F filing. Other investors include Ken Griffin's Citadel Investment Group and D. E. Shaw's namesake fund.
A month ago, Cronos Group Inc (NASDAQ:CRON) reported its financial results for the quarter ended September 30. Its revenue almost doubled over the year and amounted to $11.36 million and was slightly better than the expected 11.03 million. However, the EPS of $0.19 topped the expectations by $0.25. Overall, investors were pleased with the results, sending the stock up by 36% over the two days following the earnings report.
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2. GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH)
UK-based GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) has been one of the top "cannabis" stocks long before cannabis became mainstream. This is because the company has been working with cannabinoids and its multiple sclerosis treatment product Sativex (nabiximols) was the first natural cannabinoid-based drug to receive regulatory approval. In 2018, the US FDA approved GW Pharmaceuticals' Epidiolex, another cannabis-based product for the treatment of epilepsy.
Recently, GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) announced the launch of Phase 3 trial for nabiximols in multiple sclerosis-associated spasticity. For the latest quarter, GW Pharmaceuticals reported a revenue of $137.05 million, up by 51% on the year and better than the expected $126 million. In addition, the net loss of $0.03 per share narrowed by 25% on the year and beat the consensus estimate by $0.03.
At the end of September, there were 17 hedge funds followed by Insider Monkey that held shares of GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) worth $201.23 million, versus 18 funds and $350.61 million, respectively, a quarter earlier. Among the top investors in GW Pharmaceuticals are Steve Cohen's Point72 Asset Management, Jeffery Jay and David Kroin's Great Point Partners, and Charles Clough's Clough Capital Partners.
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1. Innovative Industrial Properties Inc (NYSE:IIPR)
The top stock in our list of hedge funds' favorite weed stocks is Innovative Industrial Properties Inc (NYSE:IIPR), as 20 investors from our database reported holding shares in their latest 13F filings, unchanged over the quarter. At the same time, the aggregate value of funds' holdings surged to $235.84 million from $185.49 million a quarter earlier.
Innovative Industrial Properties is a stock that has many reasons to be one of the best in the cannabis sector. Since the beginning of the year, it has more than doubled in value and it's the only one that's paying a dividend, because Innovative Industrial Properties is a Real Estate Investment Trust. It's not just a REIT, but it's currently the only REIT that works with the legal cannabis industry. The company works by acquiring properties through sale-leaseback program, where companies that own growing, processing, and distribution facilities get to sell them to Innovative Industrial Properties Inc (NYSE:IIPR) and then enter into a long-term triple-net lease with the REIT. In this way, companies get more liquidity and even some additional capital for upgrades and improvements.
Recently Innovative Industrial Properties has extended its collaboration with California-based cannabis producer Kings Garden by acquiring an additional property for $25.4 million. Overall, IIP has acquired and leased back six properties to Kings Garden. As of the November 4, IIP owned 63 properties located across 16 states and totaling around 5.0 million rentable square feet. During the third quarter, Innovative Industrial Properties Inc (NYSE:IIPR) generated revenues worth $34.3 million, up by nearly 200% on the year. It also recorded net income available to common stockholders of around $0.86 per share, up by 205% on the year.
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See also 25 biggest marijuana companies in the world and 11 best weed documentaries on Netflix, Amazon, and Youtube. Disclosure: No positions. 5 Best Cannabis Stocks To Buy Now is originally published at Insider Monkey.