Today, CNCB reported that Chinese trade officials were returning home from the US ahead of schedule. The news appears to have led to a fall in the broader US equity markets. At 2:10 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were both down 0.3%. Cannabis ETFs were also trading in the red.
The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 0.7% and 0.9%, respectively. Today, the stock performances of cannabis players were mixed.
HEXO receives a “buy” rating
Today, MKM Partners initiated coverage on HEXO (HEXO) with a “buy” rating and a price target of 12 Canadian dollars. MKM Partners’ “buy” rating appears to have led to a rise in HEXO’s stock price. At 2:10 PM, the stock was up 11.3%. After its release of its third-quarter earnings results on June 12, HEXO stock was down 38.2% as of September 19. During the quarter, the company reported a sequential fall in its revenue, while its net losses were wider than in its second quarter.
Cronos was up 1.2%
Today, Cronos Group (CRON) received a “neutral” rating from MKM Partners. Yesterday, the company announced a manufacturing partnership with MediPharm Labs. According to the deal, MediPharm will provide filling and packaging services for Cronos Group’s vaporizer devices. At 2:10 PM, the company was up 1.2%. YTD, its stock has fallen 5.4%.
Curaleaf falls approximately 5%
Today, MarketWatch reported that MKM Partners had initiated coverage on Curaleaf Holdings (CURA) (CURLF) with a “sell” rating. MKM Partners’ rating appears to have led Curaleaf stock to fall. At 2:10 PM ET, the company was trading 5.1% lower. However, the company’s stock price has risen 23.4% since it reported its second-quarter earnings results on August 27. Although Curaleaf’s second-quarter performance was below analysts’ expectations, management’s bullish outlook for fiscal 2020 drove the company’s stock price.
Aurora Cannabis falls over 2%
Today, MKM Partners initiated coverage on Aurora Cannabis (ACB) with a “sell” rating and a price target of 5 Canadian dollars. MKM Partners’ sell rating appears to have led to a fall in the company’s stock price. At 2:10 PM ET, its stock was down 2.6% from yesterday’s closing price.
The stock has been facing downward pressure since the company reported its fourth-quarter earnings results on September 11. It’s lost 19.7% of its value since then. Aurora’s lower-than-expected revenue in the fourth quarter appears to have led to the fall in its stock price.