Canaccord Genuity Group has initiated coverage on shares of Aurora Cannabis (NASDAQ: ACB), assigning a buy rating in a research report published on Tuesday morning. This new rating adds to the ongoing discussions surrounding the company, which have seen mixed analyses from various financial institutions.
In a notable shift, Zacks Research upgraded Aurora Cannabis from a “strong sell” to a “hold” rating on October 6, 2023. Conversely, Weiss Ratings reaffirmed a “sell (d-)” rating on January 21, 2023. Currently, the stock has received diverse evaluations, with one analyst recommending a strong buy, another a buy, one holding, and one suggesting a sell. According to MarketBeat, Aurora Cannabis holds an average rating classified as a “Moderate Buy.”
Recent Financial Performance of Aurora Cannabis
On November 5, 2023, Aurora Cannabis released its latest quarterly earnings. The company reported earnings per share (EPS) of $0.09, surpassing analysts’ expectations of $0.03 by $0.06. However, its revenue for the quarter was $64.88 million, falling short of projections which estimated approximately $86.45 million. The firm also noted a negative net margin of 15.96% and a return on equity of -0.58%. Analysts expect the company will achieve an EPS of $0.46 for the current fiscal year.
Institutional Investment Trends
Recent movements in institutional investment have been significant for Aurora Cannabis. Several hedge funds have altered their stakes in the company. For instance, Northwestern Mutual Wealth Management Co. increased its position by an impressive 1,808.9% during the third quarter, now holding 10,518 shares valued at approximately $63,000 after acquiring an additional 9,967 shares.
Other notable changes include Wealthcare Advisory Partners LLC, which purchased a new stake valued at $81,000, and Headlands Technologies LLC, acquiring shares worth about $66,000. In total, institutional investors own 47.63% of Aurora Cannabis’s stock, highlighting significant confidence from major financial players.
Company Background
Founded in 2013 and headquartered in Edmonton, Alberta, Aurora Cannabis Inc. is a licensed producer of medical and consumer cannabis products in Canada. Operating under Health Canada’s regulations, the company cultivates, processes, and distributes a diverse range of cannabis offerings. Since its public listing in 2017, Aurora has established itself as one of Canada’s leading cultivators in terms of production capacity and output.
The company’s operations include the cultivation of dried flower, extraction of cannabis oils, and the development of value-added products such as softgels, capsules, and topical treatments.
As the cannabis industry continues to evolve, the financial performance and strategic ratings of companies like Aurora Cannabis will remain closely monitored by investors and analysts alike.
