IIPR rose 36% in January
Innovative Industrial Properties (IIPR), the leading provider of real estate capital for the medical-use cannabis industry, had a staggering performance in January with a gain of ~36.5%. In comparison, some of the cannabis stocks like Canopy Growth (WEED), Cronos Group (CRON), and Aurora Cannabis (ACB) gained 76%, 89.4%, and 42.9%, respectively. However, Innovative Industrial Properties still underperformed the Horizons Marijuana Life Sciences Index ETF (HMLSF), which gained 48.3% during the same period.
What drove the stock?
The stock continued its run following a dividend declaration of $0.35 in December and the news of the Illinois Property acquisition. Innovative Industrial Properties entered into a long-term lease with Ascend Wellness. Analysts continued to have a positive outlook on Innovative Industrial Properties. In January, BTIG initiated coverage of Innovative Industrial Properties and rated it as a “buy”‘ with a target price of $60.00. However, the stock has already moved ahead of the recommended target price. Compass Point has also rated Innovative Industrial Properties as a “buy” and recommended a target price of $70, which implies a return potential of 6.8% over the closing price of $65.55 as of February 4.
Currently, Innovative Industrial Properties is trading 37% above the 100-day moving average price of $47.82, which indicates an upward trend in the stock. However, investors should note that the company’s 14-day RSI (relative strength index) is at 76, which indicates that the stock has temporarily moved into an overbought position. An RSI of 70 and above indicates that the stock is overbought. An RSI of 30 and below indicates that the stock has moved into an oversold position.