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After Initial Surge, Greenlane Holdings Trades below IPO Price

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Greenlane Holdings

Greenlane Holdings (GNLN) listed on the US market in April. It priced its IPO at $17 per share and rose almost 25% after listing on April 18.

Greenlane Holdings raised $102 million through its IPO. However, after the initial frenzy, there was a selling spree in the stock. It fell 10.4% last month, and it’s currently trading below its IPO issue price.

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Analysts’ ratings

Greenlane Holdings has received “strong buy” ratings from two analysts, while three analysts have given it “buys” or equivalent ratings. The stock’s mean consensus price target of $22.1 represents a potential upside of 42% over its June 3 closing price. Last month, Cowen initiated coverage on the stock with an “outperform” rating and a $21 price target. Canaccord Genuity also initiated coverage on Greenlane Holdings with a “speculative buy” rating and a $22 price target.

Greenlane Holdings is an ancillary cannabis play, and it isn’t involved in cannabis cultivation. Greenlane Holdings is a distributor of vaporization products and other accessories. The company uses business-to-consumer and business-to-business channels to market its products. Read Greenlane Holdings Gives You Exposure to the Cannabis Sector for a broad overview.

First-quarter earnings

Greenlane Holdings reported its first-quarter earnings results on May 9. The company reported revenue of $49.9 million compared to $43.2 million in the first quarter of 2018. It generated a net loss of $17.6 million in the quarter compared to its net profit of $2.3 million in the first quarter of 2018.

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