Boosted by a strong broader US equity market, the cannabis sector was trading in the green today. At 12:40 PM ET, the ETFMG Alternative Harvest ETF (NYSE:MJ) was trading 0.8% higher, and at 12:24 PM ET, the Horizons Marijuana Life Sciences Index ETF (TSE:HMMJ) was trading 2.8% higher. Tensions subsiding between the US and Iran has been driving the US stock market for the last two days. At 12:40 PM, the S&P 500 was trading 0.4% higher. Let’s look at the cannabis stocks that are making big moves today.
KushCo Holdings falls over 6%
Yesterday, KushCo Holdings reported its fiscal 2020 first-quarter results after markets closed. For the quarter, the company reported revenue of $34.96 million, falling short of analysts’ expectation of $41.5 million. Its EBITDA were -$12.8 million, against analysts’ expectation of -$6.5 million. Sequentially, the company’s revenue fell by 25.6%. The company has blamed the vaping crisis and ban in some of states for the quarter’s weak sales. At 12:26 PM ET today, the stock was trading 6.5% lower.
Canopy Growth up over 2%
Yesterday, Constellation Brands reported its fiscal 2020 third-quarter earnings. For the quarter, the company reported net income of $366.5 million. As reported by CNBC, its net income was dragged down by $71.1 million due to losses from its investment in Canopy Growth (NYSE:CGC). Constellation has invested approximately $4 billion in Canopy.
CNBC added that despite the losses, Constellation CEO Bill Newlands is optimistic about Canopy. Newlands expects Canopy Growth’s new CEO, David Klein, to bring “more focus and discipline” to the business. Also, according to CNBC, he’s excited about the company’s Cannabis 2.0 products. Newlands’s optimism appears to have led to a rise in Canopy’s stock price. At 12:26 PM ET, the stock was trading 2.1% higher.
ACB, CRON, and CURLF makes big moves
Driven by the positive sentiment across the cannabis sector, Aurora Cannabis (NYSE:ACB), Cronos Group (NASDAQ:CRON), and Curaleaf Holdings were up today. At 12:26 PM ET, Aurora, Cronos, and Curaleaf were trading 5.7%, 5.4%, and 8.0% higher, respectively.
Aurora Cannabis is going through a tough period. Between the beginning of 2019 and yesterday, ACB stock fell 66.5%. The company’s weaker-than-expected performance in the last two quarters, rising debt, decision to scale down its expansion plans, and fear of dilution from debenture conversion appear to have dragged down its stock.
During the same period, Cronos Group fell 39.9%. The company’s performance was weaker than expected in this fiscal year’s first three quarters, which appears to have caused its stock to fall. Meanwhile, Curaleaf is a bright spot in the cannabis space. Its stock rose by 21.8% between January 1, 2019, and yesterday. The company’s acquisitions of Select and Grassroots Cannabis and management’s optimistic outlook for fiscal 2020 appear to have boosted its stock. For more cannabis news, visit 420 Investor Daily.