Home Cannabis Sector in the Green despite Subdued Market

Cannabis Sector in the Green despite Subdued Market

Today, the US markets looked subdued. At 1:58 PM ET, the S&P 500 Index and the Dow Jones Industrial Average were down 0.1% and 0.3%, respectively. 3M’s weak third-quarter earnings appear to have weighed on the Dow Jones. However, the cannabis sector was trading in the green today.

The cannabis sector ETFs, the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ), were up 1.4% and 1.3%, respectively.

Cronos Group rises over 5%

Today, Cronos Group stock (CRON) was trading 5.9% higher at 1:49 PM ET. On October 22, Piper Jaffray’s analyst Michael Lavery lowered his price target for CRON from $18 to $12. However, Lavery was optimistic about Cronos Group due to its strong cash positions and the company’s visibility over its key strategic growth priorities, reported The Cannabis Stock.

On October 18, Stifel had upgraded CRON stock from “hold” to “buy.” However, it had lowered its price target from 16.5 Canadian dollars to 14.

This month, Cowen and Company, Jefferies, and CIBC have all lowered their price targets for Cronos Group stock. Cronos Group is due to report its third-quarter earnings on November 12. Stay tuned for analysts’ expectations.

HEXO stock falls over 3%

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Today, despite the cannabis sector gains, HEXO stock (HEXO) was trading 3.7% lower at 1:48 PM ET. Yesterday, HEXO (HEXO) had announced that it would raise 70 million Canadian dollars through a private placement of unsecured convertible debentures.

The announcement appears to have led the company’s stock price to rise by 3.5% yesterday. The company also postponed its fourth-quarter earnings from earlier announced October 24 to October 28. For analysts’ expectations, check out HEXO: What Can You Expect from Its Q4 Earnings? This month has been tough for the stock. It has lost 32.9% of its stock value so far.

Cresco Labs was down 1.1%

Yesterday, Cresco Labs (CRLBF)(CL) announced that the waiting period under the HSR act of 1976 has expired, and it will work with Origin House in closing the deal. In April 2019, Cresco Labs had entered into an agreement to acquire Origin House in an all-stock deal. Last week, the company had received five additional licenses to sell adult-use cannabis for its existing five medical cannabis dispensaries in Illinois. These new licenses raised the company’s retail footprint to ten cannabis dispensaries in Illinois.

Today, at 1:46 PM ET, the company was trading 1.1% lower. Year-to-date, Cresco Labs has lost 8.6% of its stock value as of October 23.

For more marijuana investor news, please follow 420 Investor Daily. Curious about the beverage side of the cannabis sector? Check out The Next Big Breakout Beverage Market Has Been Identified.

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