Today, the US broader equity market was trading in the green. At 2:03 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were up 1.2% and 1.1%, respectively. With a boost from Aphria’s (APHA) impressive first-quarter earnings, cannabis stocks were trading higher today. The sector ETFs, the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ), were up 6.3% and 5.6%, respectively.
Aphria stock rises over 15%
Today, Aphria reported its first-quarter earnings for fiscal 2019. For the quarter, the company’s revenue came in lower than analysts’ expectations. However, its adjusted EBITDA and EPS were better than Wall Steet expected.
The company posted an EPS of 0.07 Canadian dollars, beating analysts’ expectation for a loss of 0.02 Canadian dollars. For more on Aphria’s first-quarter performance, see Aphria Stock Rose after Impressive Q1 Performance.
The better-than-expected first-quarter EPS had led the company’s stock to rise. At 1:51 PM ET, the stock was trading 15.0% higher than the previous day’s closing price.
Canopy sells its stake in AusCann
Also today, Canopy Growth (WEED)(CGC) announced that it sold its stake in AusCann Group Holdings, an Australian cannabis company. Canopy sold its 13.2% stake for 6.3 million Canadian dollars. It also completed its previously announced acquisition of Beckley Canopy Therapeutics.
Canopy Growth hopes to expand its clinical research though this acquisition. Today at 1:52 PM ET, the company was trading 3.2% higher.
Aphria’s impressive first-quarter performance appears to have led to a rise in Canopy’s stock price. Recently, Canopy had announced to acquired a majority stake in BioSteel Sports Nutrition. See Why Canopy Growth Acquired BioSteel Sports Nutrition.
CannTrust rises over 49%
Yesterday, CannTrust Holdings (CTST)(TRST) announced that it would destroy 12 million Canadian dollars’ worth of cannabis plants and 65 million Canadian dollars’ worth of inventory. With these initiatives, the company wants to advance its commitment to fully comply with Health Canada’s regulations and seek the reinstatement of its license.
On September 17, Health Canada had suspended CannTrust’s license. Yesterday’s announcement led the company’s stock to rise. Today at 1:53 PM ET, the company was trading 49.2% higher.
ACB rises over 3.0%
As of October 14, Aurora Cannabis (ACB) had lost 42.9% of its stock value since reporting its fourth-quarter revenue on September 11. The lower-than-expected fourth-quarter revenue, analysts’ downgrades, and weakness in the cannabis sector led ACB stock to fall. But today, the company was trading 3.3% higher as of 1:53 PM ET.
Aphria’s impressive first-quarter performance appears to have also caused ACB’s stock to rise. For analysts’ recommendations on Aurora Cannabis, please read Aurora Cannabis’s Price Target Cut by 30%.
Cannabis legalization news
Meanwhile, Mexico is nearing its deadline of October 23 for cannabis legalization. To learn more, check out What Legalizing Cannabis Means for Mexico. Also, for more cannabis-related news and updates, follow 420 Investor Daily.