Today, on a slow news day regarding the US-China trade war, the broader market has been trading higher after yesterday’s fall. Around 2:45 PM EDT, the S&P 500 Index was up 0.6%. The cannabis sector was also trading higher, with the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) up 1.4% and 1.9%, respectively.
Yesterday, Canopy Rivers reported its earnings for the first quarter of fiscal 2020, which ended in June. For the quarter, the company’s operating income increased to 2.7 million Canadian dollars from 0.7 million Canadian dollars in the first quarter of fiscal 2019.
The company reported net losses of 3.0 million Canadian dollars compared to 6.6 million Canadian dollars in Q1 of fiscal 2019. Today, the company’s stock fell to a low of 2.12 Canadian dollars before reaching 2.25 Canadian dollars, a 1.8% increase from the previous day’s closing price.
Increase in Canopy Growth’s stock price
Today, Canopy Growth (WEED (CGC) was trading 3.5% higher around 2:45 PM EDT. Today, the company hit a new 52-week low of 30.30 Canadian dollars before rising later in the day. The company has been struggling since it reported its first-quarter earnings on August 14.
The company missed analysts’ revenue estimate by a significant margin. Also, its net losses were higher than expected. Following its dismal earnings results, several analysts lowered their price targets. All these factors appear to have led Canopy Growth to its 52-week low. However, on August 26, Seaport Global Securities upgraded the stock from “neutral” to “buy.”
TLRY up over 2%
Today, Tilray also hit its 52-week low of $25.52 before rising to a high of $27.15, a rise of 2.5% from its previous day’s closing price. On August 13, Tilray reported better-than-expected second-quarter revenue. However, its operating losses came in greater than expected. Higher losses appear to have pressured the company’s stock price.
On August 21, the company announced that it planned to export $3.3 million worth of medical cannabis to Germany from its wholly owned subsidiary in Portugal. Tilray CEO Brendan Kennedy expects the company to become profitable in Canada in the next quarter or two. However, he expects the company’s European operations to become profitable in the next two or three quarters.
For more information about the cannabis sector, please read Investing in the Cannabis Industry.