Canopy Growth jumps

Canopy Growth (WEED) (CGC) announced that it will acquire Acreage Holdings for a total value of $3.4 billion, which led the company’s stock price to jump on April 18. Canopy Growth was trading higher by 7%, while Acreage Holdings (ACRGF) was up 12.1% at the market open. The Horizons Marijuana Life Science ETF (HMMJ) was also trading higher by 2.4% early this morning.

Canopy Growth Stock Jumps on Acreage Holdings Acquisition

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Acreage revenue

Acreage Holdings has an established presence in the US and generated revenues of $21 million in 2018, which grew by 172% from $7.7 million in 2017. The company’s reach in the US will further accelerate Canopy Growth’s footing in that market.

Canopy Growth, with an infusion of capital of $4 billion from Constellation Brands, offers Acreage Holdings the deep pockets it needs to expand. In the press announcement, Acreage Holdings’ CEO and president, Kevin Murphy, stated that cash constraints limit the ability of a multi-state operator. However, the deal with Canopy Growth will provide the liquidity it needs to achieve its full scale.

Analyst ratings

The overall consensus ratings from the 16 analysts covering the stock this month was a “buy” as of April 18, while the current consensus price target on the stock stood at 73 Canadian dollars. In contrast, Cronos Group (CRON) and Tilray (TLRY) both have a “hold” ratings from analysts.

Read What’s the Consensus Analyst View on Canopy Growth in April?

Latest articles

Today, Slack (WORK) opened 4.5% higher after MKM Partners analyst Rohit Kulkarni gave Slack stock a "buy" rating with a target price of $40.

Pure Storage shares have risen more than 15% today. The company announced its second-quarter results after the markets closed on Wednesday.

Nordstrom (JWN) stock was up 16% as of 11:50 AM today after it reported better-than-expected earnings for the second quarter of fiscal 2019.

Last month, four automakers, including Ford, made a voluntary deal with California to make cars cleaner and more fuel efficient. Trump isn't happy with the deal.

GameStop (GME) shares rose 8% in early market trading today. The company laid off about 120 employees as part of its restructuring process.

Today, citing German business publication Manager Magazin, Reuters reported that Volkswagen CEO Herbert Diess is interested in a stake in Tesla.