On October 7, citing Bloomberg News, CNBC reported that China might not be keen on discussing all the aspects of the trade deal put forward by the Trump administration. Despite the uncertainty regarding the outcome of the trade talks, the US markets were trading in the green. At 1:40 PM ET, the S&P 500 and the Dow Jones Industrial Average were up 0.2% and 0.3%, respectively. However, cannabis ETFs were trading in the red.
Cannabis ETFs’ performances
HEXO falls on double downgrade
On October 4, HEXO (HEXO) announced that its CFO, Michael Monahan, had resigned. Today, BoAML (Bank of America Merrill Lynch) downgraded the stock from “buy” to “sell,” according to BNN Bloomberg. The investment company also lowered its price target on the stock from $9 to $4.
In a note, BoAML analyst Christopher Carey stated, “Put simply: a departure that is so abrupt, from a person with CFO experience at other public companies, is concerning, and in our view will leave investors guessing ‘what don’t we know?’ for some time,” according to BNN Bloomberg.
BoAML’s double downgrade and Monahan’s resignation led HEXO stock to fall 5.9% as of 1:27 PM ET.
MedMen stock rises over 2%
Today, MedMen Enterprises (MMEN) (MMNFF) announced that it would report its fourth-quarter earnings results after the market closed on October 28. As of October 4, the company had lost 42.9% of its stock value this year. The decline in MedMen’s stock price appears to have led investors to think the company has moved into oversold territory.
Today, at 1:24 PM ET, the company was trading 2.3% higher than its previous day’s closing price. For analysts’ ratings on MedMen, read MedMen: Analysts’ Target Price and Ratings.
Canopy stock falls over 2.0%
On October 4, CIBC cut its price target for Canopy Growth (WEED) (CGC) from 50 Canadian dollars to 45 Canadian dollars. CIBC’s price cut appears to have dragged Canopy stock down. At 1:29 PM ET, Canopy Growth was down 3.0%. Last week, Canopy acquired a majority stake in BioSteel Sports Nutrition. The company’s management expects the acquisition to expand its CBD business in the US. For more info, read Why Canopy Growth Acquired BioSteel Sports Nutrition.
Cronos Group trades in the red
On October 4, CIBC also lowered its price target for Cronos Group (CRON) from 25 Canadian dollars to 20 Canadian dollars. The lowering of the price target appears to have led Cronos’s stock price to fall. At 1:30 PM ET, the company was trading 1.9% lower than its previous day’s closing price. So far this year, Cronos stock has fallen 16.6%. For a look at analysts’ ratings on Cronos, read Cronos Group: Target Price and Valuation Update.