|Bid||82.02 x 1100|
|Ask||83.98 x 800|
|Day's Range||82.20 - 84.41|
|52 Week Range||53.80 - 139.53|
|Beta (5Y Monthly)||1.96|
|PE Ratio (TTM)||57.09|
|Earnings Date||Nov 05, 2019|
|Forward Dividend & Yield||4.00 (4.84%)|
|Ex-Dividend Date||Dec 28, 2019|
|1y Target Est||140.50|
In the latest trading session, Innovative Industrial Properties, Inc. (IIPR) closed at $83, marking a +0.34% move from the previous day.
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on the acquisition of a property in Richmond, Virginia, which is expected to comprise approximately 82,000 square feet of industrial space upon completion of development.
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. The biggest companies include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Aphria Inc. (APHA). Over the past 12 months, the marijuana industry, as measured by the ETFMG Alternative Harvest ETF (MJ) has substantially underperformed the broader market, plummeting 41.0% compared to the S&P 500's 26.4% gain. All figures in this story are as of January 8, 2020.
We all know that the overall cannabis sector took a big hit in 2019, and it probably won't start to sustainably recover until after the second calendar quarter of 2020.While most of the big players with hands on cannabis have suffered enormous downward pressure on their share prices, some pick and shovel cannabis plays, while also participating in the downturn as measured by their share prices, are also positioned to take advantage of the recovery before their counterparts.In this article we'll look at Grow Generation, KushCo Holdings, and Innovative Industrial Properties, and what the future holds for them. TipRanks, a company that measures and tracks the performance of analysts, revealed that Wall Street sees each of these names as solid Buys. Here’s what we uncovered.Grow Generation (GRWG)Grow Generation primarily offers specialty hydroponic supplies to the cannabis market. At the time of this writing the company had 25 store locations in eight states. In December the company uplisted to the Nasdaq.In the third quarter it generated revenue of $21.8 million, up 159 percent year-over-year, and up 12 percent sequentially. Operating profits came in at $1.1 million. It has had three quarters in a row of positive EBITDA. The company has guided for 2019 adjusted EPS to be in a range of $0.14-$0.18.A huge positive for Grow Generation is its hefty 48 percent of organic growth. That points to the markets it competes in having significant demand. It has also benefited from acquisitions and new stores, especially in the Oklahoma market.The company obviously won't be able to continue 48 percent organic growth in its stores that have been operational for some time, but it still has a lot of organic growth left in it from new stores.What's important for Grow Generation Corp. is it doesn't matter who wins the battle for market share for those companies touching the cannabis plant; they'll need what the company supplies no matter who it is.The major question for Grow Generation over the long term is how it'll do as competition in its segment heats up. In the near term the company should continue to do very well as market conditions improve and demand for cannabis continues to soar.The company's major risk appears to be the availability of capital for its customers. If they struggle to obtain funding, they'll have less to spend on supplies they need. This could temporarily slow down growth for Grow Generation. Ladenburg analyst Glenn Mattson recently noted, "As GRWG gains in size it is builidng the infrastruture to support it. GRWG is in the process of implementing an ERP system, which appears to be going well, as gains from efficiencies were listed as a factor in the strong gross margins in the quarter. The company also hired a new COO, Tony Sullivan, who has experience with large retail chains having been Senior VP at Dollar Express (a Family Dollar carve out with 330 stores), as well as 20+ years at Foot Locker serving as Senior VP of store operations in charge of over 2100 stores. This is in addition to bringing in Bob Nardelli, former CEO of Home Depot, to serve as a strategic advisor last quarter. With seasoned leadership our confidence is growing that the company can manage through this rapid growth period."According to Mattson, GRWG is worth over 70% than it’s currently selling for, and should hit $7 within the next 12 months. (To watch Mattson's track record, click here)All in all, Wall Street likes the risk/reward factor at play here, as TipRanks showcases a "strong buy" consensus rooting for GRWG's success. (See Grow Generation stock analysis at TipRanks)KushCo Holdings (KSHB)KushCo Holdings is a provider of products and services to the cannabis and CBD industries. In its latest move it entered into distribution agreements with four CBD brands in the U.S. via its partnership with C.A. Fortune.Its latest quarter it generated revenue of $46.97 million, up 135.3 percent year-over-year, beating estimates by $1.41 million. Non-GAAP EPS in the fourth quarter was -$0.08, beating estimates by $0.04, while GAAP EPS was $11.5 million, or-$0.13, missing by $0.01. The company guided for 2020 revenue to reach over $230 million, possibly climbing to as high as $250 million.One of the major concerns over KushCo has been its cash flow problems, and even though its margins have improved recently, it will struggle in that regard for some time.Of the three companies covered in this article, I'm least optimistic with KushCo in the near term. Part of the reason beyond cash flow is it has at times struggled on execution, as in the case of supplying packaging to Canadian companies in the past, where it came up short.In the long term, it's the type of company that should do very well in an industry that's going to grow exponentially over the next several years.Jefferies analyst Owen Bennett says that KushCo's "exposure to attractive growing segments in the cannabis space" sees him model "3 year avg. sales growth of 44%, with GM/EBITDA margins growing to 30%/8% respectively from 20%/-11% last quarter. Further accretive M&A also a possibility. In the context of NA peers (basket of 37) its sales profile also impresses, cons. CY21 sales expected at $350mn (Jef $370mn) vs. the peer median avg. of $330mn."Bennett reiterated a Buy rating on KushCo stock alongside a price target of $3.50, which implies an upside of 110% from current levels. (To watch Bennett's track record, click here)Like Bennett, the rest of the Street has high hopes for KushCo. With 4 Buy ratings received in the last three months, the message is clear: the cannabis stock is a "Strong Buy." At an average price target of $4.33, the potential twelve month gain lands at 159%. (See KushCo price targets and analyst ratings on TipRanks)Innovative Industrial Properties (IIPR)Innovative Industrial Properties offers financing in the medical-use segment of the cannabis industry by providing sale and leaseback options, as well as capital.With pot still illegal in the U.S. at the federal level, banks and other financial institutions have stayed away from financing the sector because of legal issues.As of its last earnings report it had raised $634 million for its customers, with a reported yield of 13.6 percent.While it has a great business model at this time, there are several major risks to take into account if considering taking a position in the company.The first is potential losses of companies if they are put into receivership. One of its clients has already been put into receivership. That could become a problem if that were to escalate if the cannabis market takes longer to recover than anticipated.Apparently, to combat that the company has decided to focus on stronger clients, the problem there it has had to offer lower rates to win their business; that will put some pressure on its returns.Finally, there has been a push to deal with financing issues in the U.S. for the cannabis sector by trying to push through the SAFE Banking Act. If it does pass, it would provide hefty competition for Innovative Industrial Properties that would be hard to overcome. That would probably relegate it to providing options to only high risk companies.The good news on that front is the SAFE Banking Act has run into some roadblocks that make it unlikely to pass any time soon, if ever.IIPR has a small, but vocal camp of bullish analysts with positive expectations for its stock. Out of the 3 analysts polled by TipRanks, 2 say "buy," while 1 suggests "hold." With a return potential of 83%, the stock's 12-month consensus target price stands at $140.50. (See IIPR stock analysis at TipRanks)ConclusionPick and shovel play winners in the cannabis sector are going to do very well in the years ahead. The cannabis sector is going enjoy significant growth, no matter who the winners will end up being concerning companies that directly touch the plant.There will continue to be increased competition in the ancillary segment of the cannabis market, but these companies have taken a leadership role in their respective markets, and if they can continue to retain and grow market share, they should do very well over the long term.For all of the companies talked about in this article, it's their markets to lose. If they can execute well, they will provide solid returns for investors in the years ahead.To find good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
It’s Monday, just the third trading day of the New Year. It’s tempting to start checking out the market statistics for 2020 – after all, that’s the data that we use to make our investment decisions. So, what does the data tell us, in this first full week of January?The main thing, and probably the most important, is that volatility was up in the year’s first trading sessions. Investors came back from the New Year holiday and jumped right into trading, pushing markets up on Thursday. And then, they started selling on Friday, pushing the markets right back down. The news from the Middle East, with heightened tensions between the US and Iran, has been casting a shadow on the markets all weekend – we’ll see how it affects trading later today.Investors always look for a safe spot in volatile market conditions. It’s natural. And dividend stocks are a natural refuge – they offer a steady source of income, even if share prices decline. But not all dividend stocks are created equal.We’ve used the TipRanks Stock Screener tool, which scan more than 6,400 stocks, to find the dividend stocks that stand head and shoulders above the rest. We’ve set our filters to show small-cap stocks, with over 35% upside, and dividend yields exceeding 5%. Here are the results.Gaslog Partners (GLOG)The energy industry, inhabiting a sector that is essential to the modern economy, is well known for generating high profits. Gaslog, as its name suggests, is a player in the natural gas segment of the industry. The company provides logistical support, specifically liquified natural gas (LNG) carries – the giant oceangoing vessels that move LNG around the world.GLOG showed some mixed results in its most recent quarterly report, for Q3 2019. Revenues beat the forecast by 1.3%, at $96.5 million, but EPS missed by 14% and came in at 43 cents. The company’s cash flow grew 26% year-over-year – and that led to a series of dividend payments as 2019 ended: a quarterly payment, in November, of 14 cents, followed by two special dividend payments in December, of 40 cents and 38 cents. Overall, the company’s payments to shareholders are yielding 6.32%, or more than triple the market average.The high dividend helps make up for the stock’s recent collapse in share price. GLOG lost 37% in early November, before regaining $1 per share and levelling off at current prices. The November fall was responsible for GLOG’s 37% drop in 2019 – but analysts see the lower share price now as an opportunity.4-star analyst Jonathan Chappell, of Evercore ISI, explains: “[I]n the last 6 weeks, GLOG shares have declined 32%... By our estimation, though, the “shortfall” represented roughly $10 million in total EBITDA, thus the 32% collapse seemed overdone... With the winter rate spike beginning to draw to a close volatility in the shares is likely to remain. But the structural integrity of the business model and capital structure remain intact, and with financing completed and a robust contracted revenue backlog, GLOG’s current price provides value (and yield) to investors.”Chappell gives GLOG a Buy rating. His price target, $17, indicates the extent of his confidence – he sees a 79% upside here. (To watch Chappell’s track record, click here.)Chappell is not alone in his bullish stance on GLOG. This stock has a unanimous consensus rating of Strong Buy, with 3 recent buy reviews bolstering the stock. Shares sell for a low $9.49, but the $18 average price target suggest that there is room in GLOG for 89% upside growth this year. (See Gaslog’s stock analysis at TipRanks)Archrock, Inc. (AROC)When natural gas is pulled out of the ground, it must be liquified for transport. That’s where Archrock comes in. The company owns, operates, sells, and maintains the compression equipment needed to liquify, store, and transport natural gas. It’s an essential service for the gas industry. Currently, Archrock operates solely in the continental US.Low prices in the energy sector have plagued oil- and gas-related stocks for the past year, and AROC missed the forecasts in its most recent reported quarterly earnings (Q3 2019). However, despite the miss, both the top and bottom lines were up significantly year-over-year. Revenues, at $244.95 million, were up 5.4%, and EPS, at 14 cents, was up an impressive 75%. Even missing the pre-earnings estimates, gains like that will make investors happy.What will also make investors happy is AROC’s dividend payment. The company has been paying out reliably since 2016 and raised the payment in both 2018 and 2019. The current quarterly payment, 14.5 cents per share, annualizes to 58 cents – and a strong yield of 5.75%.RBC Capital’s 5-star analyst T J Schultz sees plenty of reason for optimism in AROC shares, starting with the company’s potential to maintain and improve its dividend. In his investment summary of the stock, he writes, “We think AROC is well positioned to benefit from improving market fundamentals. Particularly, we think improving compression fundamentals can drive cash flow growth at AROC that is sufficient to cover dividends by >2.0x while also delevering to under 4.0x by 2020.”Schultz gives AROC a $14 price target to back up his Buy rating, implying a robust upside potential of 38%. (To watch Schultz’s track record, click here.)Like Gaslog above, AROC has a Strong Buy analyst consensus rating based on 3 Buy reviews. The stock is another bargain, with shares priced at $10.09. The average price target of $13.83 suggests a premium of 37% to the upside. (See Archrock’s stock analysis at TipRanks)Innovative Industrial Properties (IIPR)Real Estate Investment Trusts are a natural place to start looking for high-yielding dividend stocks. These companies, which buy up, own, and operate various combinations of residential and commercial properties or mortgages and mortgage-backed securities. By law, REITs are required to return the bulk of their profits to their shareholders, and dividends are natural way to do this.Innovative Industrial Properties lives up to its name. The company is an REIT, but has focused on a new niche: the cannabis industry. The company owns light industrial properties which are then leased to commercial cannabis growers. The marijuana industry is quickly developing a strong cash stream as legalization marches on, and IIRP is harvesting profits of its own. For the third quarter, reported in early November, the company showed an 8-cent forecast beat on EPS, reporting profits of 55 cents per share on $11.56 million in total revenue. The top-line number was 8% over expectations.So, IIPR’s financial foundation is firm. Good. But for investors, the better news comes from the dividend – as the company’s profits rise, so do the dividend payments. The company paid out three dividends in 2019, and raised the ante each time, moving from 45 cents to 78 cents to 1 dollar on December 30. Reliable payments and steady increases are sure to attract dividend hunters.The yield is fine, too. At its current payment, IIPR’s dividend yields an impressive 5.33%, more than two and half times higher than the average dividend, just 2%, found on the S&P 500.As for upside potential, Compass Point’s 4-star analyst Merrill Ross lays out the case: “In the past two weeks, public cannabis MSOs have reported rapidly growing sales and, in some cases, positive cash flows as they make headway in states where medical use is legalized and where recreational use is either on the cusp of legalization or in its infancy... We believe that IIPR can more than double its portfolio from the current level in the next 12 months…”Ross puts a Buy rating on the stock, of course, and her $130 price target suggests a whopping 73% upside potential. (To watch Ross’s track record, click here.)IIPR’s three most recent analyst reviews, split between 2 Buys and 1 Hold, give the stock a consensus rating of Moderate Buy. Shares are priced at $75, and the $140.50 average price target indicates a most impressive 87% growth potential on the upside. (See Innovative’s stock analysis at TipRanks)
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today the appointment of Mary Allis Curran to its board of directors.
A trade deal with high prospects, low interest rate environment and the rising US economy make the investment scenario look attractive for 2020.
Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that it closed on two sale-leaseback transactions with subsidiaries of GR Companies Inc. (Grassroots) for two properties in Pennsylvania and North Dakota, which comprise approximately 105,000 square feet of industrial space in the aggregate.
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Innovative Industrial Properties, Inc. (IIP), the first and only real estate company on the New York Stock Exchange (NYSE: IIPR) focused on the regulated U.S. cannabis industry, announced today that its board of directors has declared a fourth quarter 2019 dividend of $1.00 per share of common stock, representing an approximately 28% increase over IIP's third quarter 2019 dividend of $0.78 per share of common stock, and an approximately 186% increase over IIP's fourth quarter 2018 dividend of $0.35 per share of common stock. The dividend is equivalent to an annualized dividend of $4.00 per common share, and is the sixth dividend increase since IIP completed its initial public offering in December 2016.
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One of the largest and fastest-growing cannabis operators in the United States is selling its local cultivation facility as part of a sale-and-leaseback deal.
The vertically integrated cannabis company Cresco Labs (CSE: CL) (OTC: CRLBF) reported Tuesday that it has entered a binding agreement for the sale-and-leaseback of two properties for total non-dilutive funding of around $38 million. The company will sell these properties to Innovative Industrial Properties, Inc. (NYSE: IIPR). In addition, Cresco Labs also disclosed the termination of the equity purchase agreement under which its subsidiary would have obtained the ownership interests of the assets of the medical cannabis dispensary operator VidaCann Ltd. and/or affiliated entities.
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Deregulation is creating a multi-billion-dollar industry in cannabis -- but the stocks in the sector need a lot of work, cautions growth stock expert Hilary Kramer, editor of Turbo Trader.
The cannabis REIT Innovative Industrial Properties, Inc. (NYSE: IIPR) said Tuesday it has closed on a sale-leaseback transaction with Green Thumb Industries Inc. (CSE: GTII) (OTC: GTBIF) for its Pennsylvania facility. Innovative Industrial Properties will buy the Danville facility for $20.3 million less transaction expenses. The REIT will reimuburse Green Thumb in the amount of up to $19.3 million for certain enhancements of the property to be made by GTI for the purpose of increasing production capacity.