And fighting for market share is a surefire way to spend more money for each dollar of sales. The argument for why Aurora Cannabis stock could be a good investment starts with the growth of its top line and the increasing value of its brands. In the last five years, its quarterly revenue climbed by 327.2%, reaching $39.3 million, driven by its penetration of the Canadian recreational and medicinal markets. In the recreational cannabis market, it has brands positioned for everything from cheap flower to high-end vapes, concentrates, and even more exotic product formats like sublingual films. That means as consumer preferences develop, there’s a solid chance they’ll develop in a direction that’s building loyalty to one of the company’s product lines and shore up its base of revenue for years to come.
Second, positive adjusted EBITDA is a fairly low goal given the routine net profitability of a great many Canadian and U.S. publicly traded companies. It’s telling that in its most recent quarterly earnings report, Aurora led off by touting its « transformation plan. » This is its ongoing effort to trim costs through measures like facility closures and worker layoffs. Its current aim is to reach positive adjusted earnings before interest, taxes, depreciation, and amortization by the first half of 2023.
FAQs for Aurora Cannabis Inc Stock
The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Improvements in EBITDA and cash flow would be great for investors to see. However, if the company can’t achieve that while growing its top line, it may not be enough for the stock to rally.
- Given Curaleaf’s stronger consensus rating and higher probable upside, analysts clearly believe Curaleaf is more favorable than Aurora Cannabis.
- The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.
- Real-time analyst ratings, insider transactions, earnings data, and more.
- Due to the U.S. names trading very cheaply with strong fundamentals, I have positioned the Cannabis Growth Portfolio to focus on U.S. names with no exposure to Canadian operators.
- And year to date, it’s off to another rocky start, down 15% in 2021 while the Horizons Marijuana Life Sciences ETFhas risen 18%.
Analysts have estimated the company’s revenue for the quarter at $48.21 million, with a low estimate of $43.39 million and a high estimate of $50 million. According to the average forecast, sales growth in current quarter could jump up 27.50%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2024, the company’s y-o-y revenues would reach $146.57 million, representing a decrease of -11.40% from the revenues reported in the last year’s results.
Norway’s sovereign fund will shun Canadian cannabis companies because the substance is still illegal in that country
Aurora was once considered the leading light among Canadian cannabis stocks. Perhaps after a trying 2021, it can regain some of its luster in 2022 with a nice rise in its share price. The stock has a market cap of $224.71 million, a PE ratio of -0.11 and a beta of 2.58. The business has a fifty day simple moving average of $0.80 and a 200-day simple moving average of $1.02.
Only 11 people have added https://forex-world.net/ Cannabis to their MarketBeat watchlist in the last 30 days. Only 19 people have searched for ACB on MarketBeat in the last 30 days. Aurora Cannabis does not have a long track record of dividend growth. Aurora Cannabis has received no research coverage in the past 90 days.
There are currently 5 hold ratings and 1 buy rating for the stock. The consensus among Wall Street research analysts is that investors should « hold » ACB shares. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.
It attempts to reflect the cash profit generated by a company’s operations. Provide specific products and services to you, such as portfolio management or data aggregation. Changes to current federal law could allow U.S. cannabis operators to pay lower taxes, access traditional banking services, and list on major stock exchanges. ACB management has guided for positive adjusted EBITDA by the first half of fiscal 2023. For reference, the most recent quarter was the third quarter of fiscal 2022, so positive adjusted EBITDA is expected within 3 quarters. This crash occurred because the company raised $172.5 million in an expensive bought offering.
So, with the pressure mounting, Canadian cannabis executives think the industry is ripe for consolidation. And yesterday, Tilray CEO Irwin D. Simon stated as much on multiple occasions during the company’s 2023 fiscal third-quarter earnings call. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. ACB did see net revenues decline by 9% in the quarter due to price pressures across the portfolio. While the reported net loss was $1 billion, this included $923 million in impairment expenses. I estimate that excluding such non-cash losses, ACB generated a $58.7 million loss in the quarter.
In 2020, Aurora performed a reverse split of its stock for the exact same reason. Shareholders, therefore, may welcome a different approach this time around. Finally, it could be tackling some of the long-standing issues with operational inefficiencies and overproduction of cannabis that have prevented it from being profitable. In May of this year, it closed a cultivation site in Canada, laying off 13% of its global workforce in the process and making progress toward scaling its output to be more in proportion to demand. As a result, management anticipates that it should have positive adjusted earnings before interest, taxes, depreciation, and amortization on an ongoing basis by the end of 2022.
It operates through the Cannabis Operations and Non-Cannabis Operations segments. The Cannabis Operations segment includes the production and sale of cannabis via retail and wholesale channels. The company was founded on November 13, 2014 and is headquartered in Wakefield, MA.
Aurora Cannabis Estimates* in CAD
If it maintained that rate, its cash balance could potentially fund its operations for nearly two years . That’s an important consideration for investors in a company that has normally been quick to raise money through stock issues. While having a significant chunk of cash on hand doesn’t guarantee that it won’t pursue further offerings in the near future, it could minimize the need to do so.
6 equities research analysts have issued 12 month price objectives for Aurora Cannabis’ stock. On average, they expect the company’s share price to reach $2.03 in the next twelve months. This suggests a possible upside of 216.1% from the stock’s current price.
With lockdowns still likely impacting its upcoming quarterly results , I wouldn’t expect a strong rebound this coming quarter. But given that the Canadian pot market reached an all-time high in May with CA$313 million in sales, Aurora’s fourth-quarter numbers could still look better than Q3’s. And from the surge in the stock’s value back in February, you can see that investors are eager to believe that the business is on the right track. The Canadian government’s decision to license over 1,000 cannabis producers, along with its inability to rein in black market operators, has been an unmitigated disaster for the country’s top legal cultivators.
Aurora Cannabis presently has a consensus price target of $2.03, suggesting a potential upside of 216.06%. Curaleaf has a consensus price target of $10.57, suggesting a potential upside of 346.05%. Given Curaleaf’s stronger consensus rating and higher probable upside, analysts clearly believe Curaleaf is more favorable than Aurora Cannabis.
Aurora canabiss stockRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. Upgrade to MarketBeat All Access to add more stocks to your watchlist.
Aurora Cannabis buying Canadian greenhouse company Bevo Agtech
According to the data, the short interest in Aurora Cannabis Inc. stood at 9.75% of shares outstanding as of Mar 14, 2023; the number of short shares registered in Feb 14, 2023 reached 29.57 million. The stock has fallen by -29.44% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the ACB stock heading into the next quarter.
Morningstar analysts hand-select direct competitors or comparable companies to provide context on the strength and durability of ACB’s competitive advantage. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. Still though, the stock might have fallen enough to attract some value investors. This was due to an expensive bought deal offering that came even as the company boasted a net cash position. One share of ACB stock can currently be purchased for approximately C$0.87.
Finally, Stifel Nicolaus lowered their price target on Aurora Cannabis from C$1.75 to C$1.45 in a research note on Friday, January 27th. At a minimum, I would wait for at least a couple of quarters’ worth of positive adjusted EBITDA and strong sales growth before even considering buying this pot stock. The company is in a much better place now, and its operations are much more sustainable. Over the trailing 12 months, Aurora has burned through CA$280 million.
Morningstar’s Global Risk Model reveals how some of the app’s most popular stocks stack up on 11 different measures of equity-related risk. There’s plenty of opportunity for these stocks after a rough 2021. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. In fact, the stock has fallen 78% over just the past 8 months since I covered the name and recommended focusing on the US operators. The 54% crash in May is small when considering that the company actually traded above $10 per share 1 year ago. Only 3 people have added Aurora Cannabis to their MarketBeat watchlist in the last 30 days.