On October 25, the US markets rose on optimism over the progress in the US-China trade talks. At 12:51 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were up 0.5% and 0.7%, respectively. The cannabis sector was also up today.
Cannabis ETFs’ performances
CIBC downgrades HEXO
Today, CIBC downgraded HEXO (HEXO) from “neutral” to “underperform.” It also lowered its price target for the stock from 4 Canadian dollars to 3 Canadian dollars. According to MarketWatch, CIBC analysts John Zamparo and Krishna Ruthnum stated that yesterday’s layoffs indicate a more challenging situation than previously expected. CIBC’s downgrade appears to have led the company’s stock to fall.
At 12:37 PM ET, HEXO was trading 6.7% lower than its previous day’s closing price. This month, the company has lost 36.4% of its stock value as of October 24. HEXO is set to publish its fourth-quarter earnings results on October 28. For a look at analysts’ expectations, read, HEXO: What Can You Expect from Its Q4 Earnings?
CannTrust stock falls over 4.5%
On October 24, CannTrust Holdings (CTST) (TRST) announced that it had submitted a detailed plan to Health Canada describing measures it had already taken and those it needed to take to address Health Canada’s noncompliance concerns and reinstate its license. CannTrust expects to implement the initiatives mentioned in the plan by the end of the first quarter of 2020.
The company added that it’s planning to lay off 140 people in a phased manner from October to the end of this year to improve efficiency. Investors were evidently skeptical about CannTrust’s plan, as the stock was down 4.6% at 12:36 PM ET.
Aphria rises over 5.0%
On October 25, Althea announced that Aphria (APHA) planned to sell its 36.70 million non-escrowed shares in Althea for 0.4 Australian dollars per share. According to the press release, Aphria is selling Althea stock to improve its corporate governance practices and to focus more on its strategic plan. Despite the sale, Aphria continues to own 12.25 million shares of Althea. Today, at 12:38 PM ET, Aphria was up 5.7%. For a look at analysts’ recommendations, read Aphria: Analysts’ Ratings and Price Target.
Aurora Cannabis is in the green
On October 24, Mad Money host Jim Cramer commented on Aurora Cannabis during the Lightning Round segment. As reported by CNBC, he said, “This is a total spec, mam. Not more than that. It’s just a total spec. As long as you understand that, then I bless you to buy it.” Today, the company’s stock was up 2.5% at 12:39 PM ET. However, year-to-date, it had lost 28.5% of its value as of October 24.
Be sure to check out 420 Investor Daily for more news and updates on the cannabis industry.