Cannabis Roundup: WEED, KSHB, GTBIF, and ACB


Oct. 1 2019, Published 3:30 p.m. ET

On October 1, the US markets were trading in the red due to weak manufacturing data. CNBC reported that the manufacturing index published by the Institute for Supply Management for September stood at 47.8%, its lowest level since June 2009. At 1:36 PM ET, both the S&P 500 Index and the Dow Jones Industrial Average were down 1.2%. The cannabis sector also suffered from the weak manufacturing data.

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Cannabis ETFs’ performances

The ETFMG Alternative Harvest ETF (MJ) fell 3.1%, while the Horizons Emerging Marijuana Growers Index ETF (HMJR), which provides exposure to small-cap public cannabis companies, fell 2.2%. Today, most cannabis stocks were down.

Canopy Growth hits a 52-week low

Today, Barron’s reported that Piper Jaffray had lowered its price target for Canopy Growth (CGC) (WEED) from $49 to $40 on September 30 while maintaining its “overweight” rating. The company’s trimming of its price target appears to have led its stock to hit a new 52-week low of 28.67 Canadian dollars today. At 1:23 PM ET, the company was trading 5.3% lower than its previous day’s closing price. On September 27, Bank of America downgraded the stock from “buy” to “neutral.” The company’s stock has been under pressure since it reported dismal first-quarter earnings on August 14. For analysts’ recommendations and ratings, read Canopy Growth: Analysts’ Target Price and Ratings.

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KSHB up over 13%

Since reporting its third-quarter earnings on July 9, KushCo Holdings (KSHB) has lost 73.8% of its stock value as of September 30. On September 26, the company announced a $30 million direct offering. However, investors looked at the company’s offering as a dilution of its holdings, which led to a fall in its stock price. However, today, at 1:21 PM ET, the company was trading 13.5% higher. The recent fall in the company’s stock might have prompted investors to think that the company had moved into oversold territory, leading to a rise in its stock. For analysts’ opinions on KushCo, read KushCo Holdings: Analysts’ Target Price and Ratings.

GTBIF was trading in the green

Today, Green Thumb Industries (GTBIF) announced that its founder and CEO, Ben Kovler, would be taking part in the Canaccord Genuity US Cannabis Symposium in Toronto on October 3. The company reported its second-quarter earnings on August 28. Since then, its stock has fallen 7.4% as of September 30. On September 13, TheStreet reported that Cowen had initiated its coverage on GTBIF with an “outperform” rating and a price target of $18.50. Today at 1:23 PM ET, the stock was up 2.4% from its previous day’s closing price.

Aurora Cannabis falls to a 52-week low

Today, Aurora Cannabis (ACB) hit a 52-week low of 5.37 Canadian dollars. Aurora has been under pressure since reporting its fourth-quarter earnings results on September 11. Its stock has lost 31.6% of its value since September 11. On September 20, MKM Partners initiated coverage on the company with a “sell” rating. Several analysts also lowered their price targets after Aurora reported lower-than-expected revenue in its fourth quarter. All these factors appear to have led to a fall in the company’s stock price. Today, at 1:24 ET, it was trading at 5.40 Canadian dollars, which implies a fall of 7.6% from its previous day’s closing price.


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