The cannabis sector was trading in the red today. At 1:16 PM EST, the ETFMG Alternative Harvest ETF (MJ) was trading 2.9% lower. Plus, the Horizons Marijuana Life Sciences Index ETF (HMMJ) was down by 4.0% at 1:03 PM EST.
The weakness in the broader US equity market appear to have dragged the cannabis sector down. Another factor in its decline was MKM Partners lowering its revenue estimates for Canopy Growth (CGC) (WEED) and Aurora Cannabis (ACB). At 1:18 PM EST, the S&P 500 Index was trading 0.2% lower. Let’s look at today’s stock performance of some prominent cannabis companies.
Aurora Cannabis stock falls over 5%
Today, MKM Partners lowered its first-quarter revenue estimates for Aurora Cannabis from 98.0 Canadian dollars to 92.2 million Canadian dollars. As reported by MarketWatch, MKM Partners’ Bill Kirk cited higher inventory levels and pricing pressures as factors in lowering his revenue estimates for Aurora Cannabis and Canopy Growth. However, the investment equity firm maintained its “sell” rating and its price target of 3.50 Canadian dollars for Aurora Cannabis.
The reduced revenue estimate by MKM Partners appears to have pushed the company’s stock price down. At 1:05 PM EST today, the company was trading 5.2% down from its previous day’s closing price. For analysts’ first-quarter earnings, please read Aurora Cannabis: Can it Boost the Industry in Q1?
MKM Partners lowers price target for WEED
Today, MarketWatch reported that MKM Partners also lowered its second-quarter revenue estimates for Canopy Growth (WEED) (CGC) from 114.5 Canadian dollars to 95.4 Canadian dollars. The investment firm also reduced its price target for Canopy Growth from 33 Canadian dollars to 30 Canadian dollars.
MKM Partners’ price cut and reduced revenue estimates appear to have led to a fall in the company’s stock price. At 1:05 PM EST today, Canopy Growth was trading 5.0% lower than its previous closing price.
MedMen opens its store in Sarasota, Florida
Today, MedMen Enterprises (MMEN) (MMNFF) opened its first store in Sarasota, Florida. This was the company’s eighth new store in Florida this year. The company, which has licenses to open 35 stores in the state, plans to open 12 stores this year.
Despite this announcement, MedMen was trading 0.7% lower at 12:45 PM EST. The weakness in the marijuana sector appears to have dragged the stock down. Year-to-date through November 8, the company has lost 62.3% of its stock value. Its weak fourth-quarter performance, termination of its merger with PharmaCann, and weakness in the cannabis sector could have caused the company’s stock to fall.
Organigram’s Rossignol wins an award
Organigram Holdings (OGI) announced that its medical product Rossignol received the Top Product Award in the High THC Bottled Oil Category on November 8. This award was presented at the Canadian Cannabis Awards Gala in Toronto.
Despite this announcement, the company was trading 7.3% lower today at 1:06 PM EST. Year-to-date, the company has lost 0.6% of its stock value as of November 8. However, analysts are bullish on the stock. For analysts’ ratings, please read Organigram Holdings: Why Analysts Are Bullish.
For cannabis-related news and update, please visit 420 Investor Daily.