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- Meanwhile, since marijuana is still a Schedule 1 drug at the federal level in America, foreign companies can’t directly import product into this vast and highly tempting market.
- Further, it provides patient counselling services; design and construction services; and cannabis analytical product testing services.
- In a normalized situation, sales should equal production and production equals capacity, but the problem is that current production capacity of Aurora in Canada is higher than the legal demand in Canada.
- Aurora Cannabis’ stock was trading at $5.41 at the beginning of 2022.
- An evolving regulatory environment can make navigating the cannabis theme challenging.
Canopy Growth has at least posted one profitable quarter over the past year-plus, but that’s really not much to write home about — particularly if we look at the more consistent profitability of selected U.S. players like Trulieve Cannabis. Sign Up NowGet this delivered to your inbox, and more info about our products and services. Aurora Cannabis, Canopy Growth Corporation, and Tilary Inc. are a few of the key players in the market. Topicals represent a minimal share of the product application – lotions, lubricants, creams, and others are generally infused with ingredients providing relief of muscle soreness, inflammation, headaches, and cramping. Moreover, marijuana legalization is gaining momentum around the world. This momentum is driven primarily by the increasing recognition that the product may have a range of legitimate medicinal benefits and therapeutic applications.
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The average Canadian facility of ACB, both under construction and in operation, is 3.4 hectares (364k sq. ft.) and this is consistent with the average Dutch greenhouse business which is ~4 hectares according to the bureau of statistics. On January 17, 2018, Newstrike shareholders approved the proposed merger. On January 18, CanniMed postponed its shareholder vote on the Newstrike deal, submitting that it will hold talks technical analysis of stocks and trends definition 2020 with suitor Aurora Cannabis. On January 24, it was announced that Aurora Cannabis finally hammered out a deal to acquire CanniMed Therapeutics Inc. for $1.1 billion, and CanniMed dropped its plans to acquire Newstrike. On average, 4 Wall Street analysts forecast ACB’s earnings for 2024 to be -$71,465,337, with the lowest ACB earnings forecast at -$104,220,283, and the highest ACB earnings forecast at -$29,777,224.
Meanwhile, just Aurora has planned capacity additions of 340 thousand kilos according to its latest Q4 earnings presentation. The fact remains that the market is vastly oversupplied, which will make producers suffer steep losses for some time, until only the most efficient producers survive the shakeout. This is inevitable, and as inventories pile up, produce can even be sold under its production cost. This will likely happen as inventories pile up and companies need cash.
Aurora Cannabis stock fair value estimate cut to C$2 from C$3 at MKM Partners
Data may be intentionally delayed pursuant to supplier requirements. The edible segment of recreational marijuana is expected to grow at the fastest pace during the projection period. Products are typically delivered within 1 to 2 business days, with some exceptions. Browse the site, learn about cannabis, create a list of favourites, read product descriptions, and when ready, simply add products to your cart and follow the checkout instructions. THCTetrahydrocannabinol, commonly referred to as THC is the main psychoactive compound in cannabis. While typically consumed by smoking cannabis, it is also available in oils, edibles, tinctures, capsules and more.
- According to the current price, Aurora Cannabis is 13.36% away from the 52-week high.
- This momentum is driven primarily by the increasing recognition that the product may have a range of legitimate medicinal benefits and therapeutic applications.
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- Cannabis NL and its partners are pleased to offer new products on a regular basis.
- Although Coke and Aurora then announced that they were merely studying the market, and had no plan to announce regarding the distribution of such products.
- Canada has recently emerged as a flag-bearer country by playing a leading role in global marijuana legalization.
This difficulty is increased by the fact that it is illegal to advertise cannabis products in Canada. Aurora Cannabis Inc. is a Canadian licensed cannabis producer, headquartered in Edmonton. As of late September 2018, Aurora Cannabis had eight licensed production facilities, five sales licences, and operations in 25 countries.
Evidence from somewhat more mature markets in a couple of states in the US show that dry flower still takes well over half of the market. The Canadian market is critical to Aurora and this is still for a large euro to us dollar rate today eur part served by illegal suppliers. The fact is that the black market is still competitive on price and quality. Of course, the price element will shift over time, no one should have doubts about that.
- Information is provided ‘as-is’ and solely for informational purposes and is not advice.
- Aurora Sky was sold to Bevo Agtech in 2022, following a transaction in which Aurora took a 50.1 per cent stake in that company.
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- This is based on 4 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
- Aside from the long-term normalization that will inevitably happen, there can be short-term price fluctuations in commodity production.
I live in the Netherlands and will share my European perspective on stocks worldwide. The 5% net income margin is not very inspiring and clearly isn’t what shareholders of Aurora have been hoping for. An argument against this calculation could be to account for size of the business, but we are there already when it comes to ACB.
The rational thing to generate enough cash flow is to let the facilities operate at maximum efficiency and sell as much as possible. According to analysts’ consensus price target of $3.96, Aurora Cannabis has a forecasted upside of 241.4% from its current price of $1.16. Money Flow Uptick/Downtick RatioMoney flow measures the relative buying and selling pressure on a stock, based on the value of trades made on an “uptick” in price and the value of trades made on a “downtick” in price. The up/down ratio is calculated by dividing the value of uptick trades by the value of downtick trades. Net money flow is the value of uptick trades minus the value of downtick trades. Aurora Cannabis, Inc. engages in the production, distribution, and sale of cannabis products.
ACB vs Pharmaceutical Stocks
Shares of Aurora Cannabis reverse split before market open on Monday, May 11th 2020. The number of shares owned by shareholders was adjusted after the market closes on Friday, May 8th 2020. An investor that had 100 shares of stock prior to the reverse split would have 8 shares after the split. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 to -2 . This is a lower news sentiment than the 0.56 average news sentiment score of Medical companies.
So even though the Netherlands is a front-runner within the EU with its liberal soft drugs policy, cannabis production and wholesale are still very restricted compared to Canada. While there is capacity to come, Aurora’s current production and sales weren’t fully ramped up yet in the last quarter. By now, the company should produce about 40,000 kilos/quarter and sell a close to that amount. But as you can see in the table below, production was 29 thousand and sales were just 17.8 thousand kilos. It is interesting to see how the market will absorb Aurora’s doubling sales. In a normalized situation, sales should equal production and production equals capacity, but the problem is that current production capacity of Aurora in Canada is higher than the legal demand in Canada.
As the company bleeds cash, even as the hardest hit to its market has yet to come, tangible book is a fair valuation. Aurora became a publicly traded company on the Toronto Stock Exchange on July 24, 2017, and on the New York Stock Exchange on October 23, 2018. You may use StockInvest.us and the contents contained in StockInvest.us solely for your own individual non-commercial and informational purposes only. Any other use, including for any commercial purposes, is strictly prohibited without our express prior written consent. There is no support from accumulated volume below today’s level and given the right condition the stock may perform very badly in the next couple of days. The stock has broken the very wide and weak rising short-term trend down.
This signalizes a slower rate of rising, but may also be an early warning about a possible trend shift. Due to the trend being broken there will now be resistance at the bottom line of the trend at $1.30. A reaction back to this level may hold a second chance to get out before further falls.
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The Aurora Cannabis stock holds several negative signals and despite the positive trend, we believe Aurora Cannabis will perform weakly in the next couple of days or weeks. This stock may move much during the day and with a large prediction interval from the Bollinger Band this stock is considered to be “high risk”. During the last day, the stock moved $0.13 between high and stock trading vs forex trading low, or 11.14%. For the last week, the stock has had daily average volatility of 8.59%. In 2025, ACB is forecast to generate $102,219,253,861 in revenue, with the lowest revenue forecast at $102,219,253,861 and the highest revenue forecast at $102,219,253,861. The Score for ACB is 47, which is 6% below its historic median score of 50, and infers higher risk than normal.
Stock Money Flow
The problem to ACB remains that the produce still remains a commodity and prices have to drop first to become more competitive with the black market. Even if ACB produces niche or otherwise specialized products, it won’t help much, as I will argue in the next section. Being a farm is not the image that the company puts at the forefront of course. The company has a plan that includes pushing higher margin products, increasing sales, and exports, while funding this by issuing shares, but though each of those plans have flaws, there is a bigger issue. The sector will be hit hard by oversupply and that’s the point at which we can see that the company may have a plan until it is punched in the face.