The news is only getting worse for Aurora Cannabis (NYSE 🙂 (TSX :).
The Canadian marijuana grower published his last Thursday after the close. The release showed one of the worst quarters for the Edmonton, Alberta-based company, sending its shares to its lowest level in 2021, hitting $ 6.70.
Shares have bounced back a bit since then, trading just over 2% yesterday on the day to close at $ 7.02. If there was one positive result, the pot stock is doing better than in October, when it dropped to about $ 4. But that doesn't say much.
What speaks volumes is the chorus of analysts who are openly beginning to wonder what the cannabis grower should do to get ahead.
In a note last week, an analyst wrote with Cantor Fitzgerald reportedly raised the question of whether Aurora should leave the recreational market entirely to turn its attention to the medical marijuana market, an industry where it has achieved its best performance. delivered in a dismal quarter.
Overall, Aurora posted sales of C $ 55.1 million (US $ 66.3 million) in the third quarter ended March 31. This figure represents a decrease of 20.8% compared to the same period last year. The analyst consensus called for revenues in the $ 68 million range. And aside from the fact that the numbers fell well short of expectations, the numbers presented the dubious distinction, giving the company the worst result in six quarters.
Recreation sales fell 37%
Canaccord Genuity lowered inventory last Friday, moving from & # 39; hold & # 39; to & # 39; sell & # 39;, while Cantor Fitzgerald are & # 39; neutral & # 39; retained its rating but lowered its target price.
The bright spot remains the company's performance in the medical marijuana sector, where CEO Miguel Martin said:
"… we delivered the strongest performance in domestic medical and the best international medical cannabis results of any Canadian LP during the period."
This prompted Cowen analyst Vivien Azer to underscore the need for Aurora to keep its emphasis on the medical sector on a more global basis.
But figuring out the bright spots may not be what investors are in the mood for. Just over a year ago, the Aurora stock was trading at just over $ 90 just before falling off a cliff.
The stock has fallen slightly less than 39% in the past year.
2 pot stocks headed for NASDAQ
If all goes to plan, two Canadian based pot companies will soon start trading their US stocks on the stock exchange.
Aurora Cannabis made the announcement when it unveiled its latest quarterly results last week, explaining that it would move its US stock from the New York Exchange to the NASDAQ after the May 24th close. It will continue to use the ticker ACB.
] "NASDAQ is a good fit for Aurora and this move to the stock exchange will allow us to realize cost savings as part of our efforts to deliver long-term value to shareholders," said Aurora CEO.
Meanwhile, Calgary-based High Tide (OTC 🙂 plans to move to NASDAQ after approval later this month to cut costs. It had previously consolidated its issued and outstanding common stock at a 15: 1 ratio to meet the minimum price set by NASDAQ.
