AUS
NZ
UK
CA
USA
IND
Summary
- Pot stocks Aurora Cannabis (TSX:ACB), Canopy Growth (TSX:CGC) and Aphria Inc (TSX:APHA) shot up on Monday ahead of US election results.
- The S&P TSX cannabis index, however, records a decline of over 40 per cent this year.
- The discussion of federal legalization of adult-use recreational cannabis in the US has been a hot topic during election campaigns.
Canadian cannabis stocks, including those of Aurora Cannabis (TSX:ACB), Canopy Growth (TSX:CGC) and Aphria Inc (TSX:APHA), rode high in the markets this week. The rally comes just as the anticipation around the US presidential election results pumps up.
The discussion of federal legalization of adult-use recreational cannabis in the United States has been a hot topic during election campaigns this time. Former presidential candidate Bernie Sanders had declared that he would greenlight pot decriminalization at the federal level on his first day as president. Democrat vice presidential candidate Kamala Harris made the same promise a few weeks ago if Joe Biden won the Oval Office. To many peoples’ surprise, even some Republican politicians vouched for the legalization, such as Vermont Governor Phil Scott, who has hinted at allowing recreational marijuana in his state.
Despite rising demand and sales of cannabis, the S&P TSX cannabis index records a decline of over 40 per cent this year. However, the index has managed to climb over 17 per cent quarter-to-date (QTD).
Let’s take a closer look at the stocks of Aurora Cannabis, Canopy Growth and Aphria Inc to understand their performances better.
Aurora Cannabis (TSX:ACB)
Current Share Price: C$ 6.06
Aurora Cannabis has not been experiencing a very good year. The pot company recently sold its 11.84 per cent stake in Australian medical marijuana company Cann Group Ltd. In its fourth quarter of 2020, Aurora Cannabis recorded a five per cent quarter-over-quarter (QoQ) decline in its net revenue of C$ 72.1 million. Its consumer cannabis net revenue was down nine per cent QoQ, while its cannabis net revenue dropped three per cent QoQ in Q4 2020.
The company saw an adjusted EBITDA loss of C$ 34.6 million in Q4 2020 was down from C$ 50.4 million in Q3 2020.
ACB STOCK PERFORMANCE
Aurora Cannabis stocks are down nearly 82 per cent year-to-date (YTD). Its shares sank about 50 per cent in the last six months and about 56 per cent in three months. However, Aurora Cannabis scrips shot up over 16 per cent on Monday.
Currently, Aurora Cannabis stocks are trending high on the Toronto Stock Exchange (TSX). Its 10-day average movement volume is 3.2 million.
Aurora Cannabis’ market cap stands at C$ 698 million at the moment. Its price-to-book (P/B) ratio is 0.172 and debt-to-equity (D/E) ratio is 0.25, as per the data on the TMX.
Aphria Inc (TSX:APHA)
Current Share Price: C$ 6.42
Aphria Inc posted a 15.5 per cent year-over-year (YoY) growth in its a net revenue of C$ 145.7 million in the first fiscal quarter of 2021. Its net cannabis revenue of C$ 62.5 million was up 103 per cent YoY in the first quarter ending on 31 August 2020. The company recorded a net loss of C$ 5.1 million for Q1 FY21, while its cash and cash equivalents stood at C$ 400 million as of August 2020.
Aphria Inc’s market cap currently stands at C$ 1.85 billion. Its price-to-book (P/B) ratio is 1.027, its price-to-cash flow (P/CF) ratio is 2,681.6 and its debt-to-equity (D/E) ratio is 0.23, as per the data on the TMX Group.
APHA STOCK PERFORMANCE
Shares of Aphria Inc spiked over 11 per cent on Monday ahead of the US election results. However, the stocks remain over five per cent down this year. Its scrips climbed over 34 per cent in the last six months and has been trading flat in the last three months.
Ranked high among trending health care stocks and stocks with heavy trading actives on the TSX, Aphria scrips recorded an average share trading volume of 3.4 million in the last 30 days.
Canopy Growth Corporation (TSX:WEED)
Current Share Price: C$ 27.01
Cannabis company Canopy Growth registered a 22 per cent YoY climb in its net revenue in Q1 2021, which the company said was driven up increased medical cannabis sales in Canada and Germany. It also incurred a net loss of C$ 128 million in Q1 2021 ending 30 June 2020.
The company saw an adjusted EBITDA loss of C$ 92 million in Q1 2021, as compared to a loss of C$ 93 million in Q1 2020. Its cash and short-term Investments stood at C$ 2 billion as of June 2020.
WEED STOCK PERFORMANCE
Canopy Growth stocks jumped nearly 11 per cent during Monday’s intraday trading. Though the scrips are down nearly two per cent this year, they climbed about 29 per cent in the last six months and over 13 per cent in three months.
Shares of Canopy Growth are currently ranked high among trending stocks on the TSX, with a 10-day average trading volume of 1.75 million.
