|Bid||25.55 x 1000000|
|Ask||25.70 x 1000000|
|Day's Range||24.50 - 25.70|
|52 Week Range||23.00 - 51.79|
|Beta (3Y Monthly)||0.55|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Cannabis companies that have made acquisitions at the height of excitement about Canadian legalization last year may be facing some big goodwill writedowns.
The bellwether marijuana stock delivered a very disappointing quarter, and Tilray's latest wasn't much better. Aurora Cannabis, meanwhile, gets to borrow a bit more money.
Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.
Canadian marijuana grower Canopy reported a huge quarterly loss and a sequential decline in sales, sending the stock down 20%. While some may see the drop as a buying opportunity, Wall Street analysts have mixed feelings.
Canopy Growth Corp. seems to have lost its market lead in adult-use cannabis in Canada, GMP Securities said Friday. Analyst Ryan Macdonell slashed his stock price target to C$45 from C$65, after the company reported earnings for its fiscal first quarter that were mostly below expectations. But the company's setting aside of a C$6.4 million provision against oil and gelcaps being returned due to oversupply may be a company-specific problem, said Macdonell. The analyst calculated that 23% of the company's third-quarter and 50% of its fourth-quarter recreational market volumes were extract products, while extracts accounted for an average of 7% of the sell-through volume in the recreational market since inception. "We are decreasing our price target as the lacklustre performance in recreational market sales could indicate that Canopy has lost the leading position," he wrote in a note. "We remain positive on WEED over the long-term as we expect the company is well prepared for cannabis 2.0.," he said, referring to the launch of new formats including edibles later this year. Canopy shares were up 2% premarket, but have fallen 17% this week and 39% in three months. The ETFMG Alternative Harvest ETF has fallen 24% in the last three months, while the S&P 500 has lost 1%.
Canopy Growth's ex-CEO, Bruce Linton, increased his investment in the company. Linton stated that he's still positive about the company's future.
Aurora Cannabis (ACB) announced that it's increasing its secured credit facility to 360 million Canadian dollars from $200 million Canadian dollars.
Canopy Growth said its pot shops could open in the U.S. this fiscal year. But shares plunged on a big loss and falling market share. Other marijuana stocks sold off.
U.S.-listed shares of Canopy fell as much as 14.5% to $27.30, a day after the company reported disappointing quarterly results. As marijuana companies spend heavily, investors have been worried about their ability to post a profit, even as their top lines surge. Canopy posted a C$1.2 billion loss and lower-than-expected sales for the first quarter, joining rivals Cronos Group and Tilray which recently reported wider quarterly losses.
Detroit Free Press Reporter Kathleen Gray moderated the talk. Acreage Holdings’ Board of Directors include former U.S. House Speaker John Boehner and Bill Weld, former governor of Massachusetts and 2020 Republican presidential candidate.
Canopy stock is poised to drop big on Thursday after the cannabis company missed fiscal Q1 revenue and earnings estimates.
Canopy Growth admitted that the losses were due to upfront capital investments in Canada and Europe. The investments were made to "generate future value."
(Bloomberg) -- Canopy Growth Corp. shares tumbled as much as 14% to the lowest since January after the pot producer reported revenue that missed the lowest analyst estimate and appeared to lose its first-place share of the Canadian market.Canopy also posted a decline in recreational cannabis revenue and took an C$8 million writedown to account for potential reimbursements to its wholesale customers for unsold product. Analysts agree that it was a broadly disappointing quarter, but say the one bright spot is Canopy’s large harvest and growing inventory, which could position it well to compete as new derivative products such as edibles are legalized in Canada later this year.Here’s what analysts are saying:Canaccord Genuity, Matt BottomleyResults were “well under our expectations as the company posted its second quarter of sequentially lower net cannabis revenues.” Most notably, it appears that Canopy lost its first-place share of the Canadian market to Aurora Cannabis.Gross recreational cannabis revenues fell 11.4% from the prior quarter due to a “very surprising shift” in sales of oils and softgels, which tumbled to C$200,000 from C$36.5 million.One positive note is Canopy’s C$394 million of inventory on hand, including C$93 million of finished products, “which we believe likely positions the company well to compete in the Cannabis 2.0 market once additional derivative products are implemented later this year.”Maintains speculative buy rating, C$70 price target.William O’Neil & Co., Andrew KessnerThe amount of cannabis harvested, which grew 183% from the prior quarter, is “the most positive aspect of Q1’s results, as this production capacity puts the company in a strong position to compete in the market for vapor products, beverages, and edibles when those products become legal to sell in late Q4.”However, Kessner notes that Canopy posted no organic international sales growth and domestic sales declined “despite a substantial uptick (we estimate +55%) for the broader Canadian recreational cannabis market during the quarter.”In addition, Canopy’s C$1.2 billion non-cash loss on the extinguishment of warrants held by Constellation Brands Inc. was “surely jarring to some investors.”BMO Capital Markets, Tamy Chen“Canopy may have had a suboptimal inventory mix relative to rec consumer demand,” and sales should improve somewhat going forward. However, Canopy’s focus on building an inventory of cannabis beverages prompts caution, “as we believe the initial uptake for beverages may be muted by limited in-store shelf space.”“In addition, we believe margins and cash flows could further deteriorate” as Canopy spends to manufacture more costly derivative products like beverages. Weak gross margins in the quarter already point to “significant challenges” at Canopy’s greenhouses and the costly procurement of third-party supplyMaintains market perform rating, C$60 price target.Eight Capital, Graeme KreindlerCanopy harvested 40,960 kilograms of cannabis in the quarter, the largest quarterly harvest to date of any Canadian pot producer, which “alone could service the vast majority of quarterly demand in the Canadian market in its existing form.”“We expect to receive more detail on the upcoming conference call as to whether a majority of this product will be stockpiled ahead of the derivative market, or whether WEED expects to aggressively price product to grow its market share position.”Believes Canopy will minimize its spending on strategic investments and acquisitions until a full-time CEO is in place.Maintains buy rating, C$70 price target.(Updates share move in first paragraph, updates chart.)To contact the reporter on this story: Kristine Owram in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Will Daley, Scott SchnipperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Canopy Growth Corp. reported a C$1.28 billion quarterly loss late Wednesday and missed analyst estimates for revenue, sending shares down 10% in after-hours trading.
Cannabis stocks continue to struggle as Canopy Growth reports fiscal quarter one earnings that missed on both top and bottom lines, with a loss of $1 billion in 3 months. Yahoo Finance's Zack Guzman and Kristin Myers are joined by Nathan Latka, CapitalistBook.com author, to discuss.