Today, the US broader equity markets were trading in the red. At 12:50 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were down 0.6% and 0.3%, respectively. The weakness in the cannabis sector continued today as well. The ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 1.3% and 1.8%, respectively. Cannabis stocks showed mixed performances today.
Cresco Labs announces a sale and leaseback agreement
Today, Cresco Labs (CL) (CRLBF) announced that it had agreed to sell its properties in Illinois to Innovative Industrial Properties (IIPR) for approximately $46.3 million. However, the company will lease back both properties and operate them as licensed facilities. The companies expect to complete the deal within one month. Today at 12:50 PM ET, Cresco Labs was trading 1.9% lower, while IIPR was trading 1.2% higher than its previous day’s closing price.
YTD (year-to-date), IIPR has risen 109.5%, while Cresco Labs has fallen 10.4% during the same period. On August 8, IIPR reported strong second-quarter earnings. During the quarter, the company’s revenue beat analysts’ estimates, while its EPS were in line with analysts’ expectations.
Cresco Labs reported its second-quarter earnings results on August 21. The company outperformed analysts’ revenue estimates. However, its net losses were higher than expected, leading to a fall in its stock price.
Jim Cramer on Cronos Group
Speaking on Cronos Group, Jim Cramer said in yesterday’s Mad Money Lightning Round, “I think you can speculate and buy a piece,” as reported by CNBC. In the morning, Cramer’s optimism appeared to lead Cronos Group stock to rise 1.9% from its previous day’s closing price. However, the weakness in the cannabis sector seems to have dragged the company’s stock down since then.
At 12:50 PM ET, the company was down 1.3%. YTD, the stock has fallen 13.6% as of September 26. During its second-quarter earnings call, it announced that its operating losses would rise in the second half of 2019. The announcement appears to have led to a fall in the company’s stock price. Read Cronos: What’s the Word on Wall Street? to learn more about analysts’ ratings on Cronos Group.
HEXO rises over 1.0%
Today at 1:00 PM ET, HEXO (HEXO) was trading 1.2% higher than its previous day’s closing price. Earlier this month, the company received “buy” ratings from MKM Partners. The investment company also gave it a 12-month price target of 12 Canadian dollars, which implied a return potential of 119.8% from HEXO’s September 26 closing price. To learn more about analysts’ ratings for HEXO, read HEXO: Analysts’ Target Price and Ratings.