Aphria (APHA) is one of the largest cannabis companies in terms of revenues. However, the stock took a beating after its earnings release on April 15. Aphria stock has moved sideways in recent months. On June 24, the stock rose ~5.7% without any visible catalyst. The company’s valuations are at an all-time low compared to its peers, which might have attracted value buyers to the stock. To learn more, read Revisiting Aurora Cannabis’s Valuations at End of June.
Aphria has returned ~19% YTD (year-to-date) to investors. Aphria outperformed the market benchmark S&P 500 and the TSX 300 Composite Index, which returned 17% and 15%, respectively. However, Aphria has broadly underperformed its peers. OrganiGram (OGI) has delivered an impressive YTD return of 71%, while Cronos Group (CRON) has returned ~55%. HEXO (HEXO) has returned 50% despite the recent sell-off after the company’s earnings release on June 12.
Aphria had come under pressure due to its weak corporate governance, which was reflected in the company’s acquisition activities. Weakness in the cannabis sector lowered the stock price.