Today, the broader US stock markets were trading in the green. The positive signs from the US-China trade talks appear to have driven the US equity market higher. At 1:55 PM EDT, the S&P 500 Index and the Dow Jones Industrial Average were up by 0.5% and 0.1%, respectively. The cannabis sector was also trading in the green.
The cannabis sector ETFs, the Horizons Emerging Marijuana Growth ETF (HMJR) and the ETFMG Alternative Harvest ETF (MJ) were up by 2.1% and 1.7%, respectively. Marijuana stocks showed a mixed performance today.
HEXO was down by 2.5%
Today, CIBC cut its price target for Hexo (HEXO) from 7.50 Canadian dollars to 4.00 Canadian dollars. The new price target represents a 12-month return potential of 11.1% from its October 18 closing price. CIBC’s price cut appears to have led to a fall in the company’s stock price. At 1:41 PM EDT, the company was trading 2.8% lower.
Earlier this month, Bank of America, Roth Capital, GMP, and Eight Capital had also downgraded the stock. In addition, Canaccord Genuity, Jefferies, and Cormark had lowered their price targets. Hexo has lost 31.2% of its stock value. The company is scheduled to report its fourth-quarter earnings on October 24.
Curaleaf’s shareholders extend lockup period
Today, Curaleaf Holdings (CURLF) (CURA) announced that its shareholders voluntarily agreed to extend their lockup period. These shareholders represent approximately 75% of the company’s issued and outstanding shares.
Despite the announcement of the extension of the lockup period, Curaleaf was trading in the red today. At 1:31 PM EDT, the company was down 1.1% from its previous closing price. Year-to-date, the company has returned 24.8% as of October 18. Curaleaf is one of the few cannabis companies that has delivered positive returns this year.
Canopy Growth expands its medical cannabis operations
Canopy Growth (WEED) (CGC) announced that its pharmaceutical business, Spectrum Therapeutics, would supply medical cannabis to Luxembourg in an exclusive agreement that runs through December 31, 2021. The company plans to import cannabis from its licensed facilities in Denmark.
The company also announced that Spectrum Therapeutics had received the license to store and distribute medicinal cannabis products in the UK. The license would allow the company to import medical cannabis products directly from its facilities in Europe. The company expects the license to optimize its supply chain while reducing its overhead.
Today at 1:43 PM EDT, Canopy Growth stock was trading 0.5% higher. To learn about Mad Money host Jim Cramer’s opinion on this stock, please read Jim Cramer: Canopy Growth Needs a Packaged Goods CEO.
With respect to marijuana legalization, the governors of New York, Connecticut, New Jersey, and Pennsylvania met in New York on October 17 and agreed on some basic guidelines. For more on this topic, please read Cannabis Legalization: Four Governors Meet in New York. For analysts’ ratings as well as marijuana-related news and updates, please follow 420 Investor Daily.