Today, the cannabis sector continued to rise. Investors seemed excited after the House Judiciary Committee cleared legislation that could legalize marijuana at the federal level yesterday. For the details, check out Cannabis Legalization: House Approves the Bill.
However, the broader equity market was down today, with the S&P 500 Index 0.2% lower. The delay in completing phase one of the trade deal between the US and China could have caused the broader equity market to fall. But let’s leave that uncertainty aside to look at the big movers in the cannabis space today.
Aurora Cannabis rises over 18%
Today, at 1:40 PM ET, Aurora Cannabis (ACB) was trading 18.7% higher. As of yesterday, the company had lost 48.4% of its stock value this year. Weak first-quarter revenue, management’s decision to scale down its expansion plans, and analysts’ price cuts had led the stock to fall.
With Aurora planning to launch Cannabis 2.0—cannabis-infused products—by the end of this year, it promoted Dr. Shane Morris as its chief product officer yesterday. The company also promoted André Jérôme as its chief integration officer.
Canopy Growth continues to make big moves
Yesterday, Bank of America upgraded Canopy Growth (CGC)(WEED) from “neutral” to “buy.” As CNBC reported, Bank of America believes the recent fall in Canopy Growth’s stock price has brought its valuation multiple to reasonable levels.
Also, the investment firm thinks Canopy can meet or even beat current Wall Street estimates. For more detail, take a look at Bank of America Upgrades Canopy Growth to ‘Buy.’
Yesterday, after the upgrade, Canopy Growth’s stock rose 15.1%. Today, the stock is trading 17.6% higher as of 1:39 PM ET.
HEXO rises over 32%
As of yesterday, HEXO (HEXO) had lost 46.3% of its stock value this year. Weak fourth-quarter performance, the withdrawal of its fiscal 2020 guidance, and analysts’ downgrade had led the stock price to fall.
The excitement surrounding the House Judiciary Committee passing legislation to legalize marijuana at the federal level brought HEXO’s stock price to rise 32.8% today as of 1:39 PM ET. And the surge in the stock price has offset some of its recent declines.
Curaleaf stock continues to rise
Curaleaf Holdings (CURLF)(CURA) had reported its third-quarter earnings after the market closed on Tuesday. For the quarter, the company reported revenues of $61.82 million, which fell short of analysts’ expectations of $64.87 million. However, its adjusted EBITDA came in at $9.1 million, beating analysts’ estimate of $7.1 million. Its net losses were also lower than expected.
Following Curaleaf’s impressive third-quarter earnings, MKM Partners raised its price target from 6 Canadian dollars to 8. The strong third-quarter performance led the company’s stock to rise 15.1% yesterday. Today, Curaleaf continued its upward momentum. It was trading 4.1% higher as of 1:33 PM ET.
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