Cannabis-industry stocks traded mostly higher Tuesday, as an upbeat profit report, a $10 million investment and a bullish analyst report helped trigger renewed interest in the sector.
The U.S.-listed shares of Aurora Cannabis Inc.(ACB.T) climbed 2.9% toward an eight-month high in afternoon trading, with volume of 17.3 million shares nearly double the full-day average of 9 million shares, according to FactSet. The stock has run up 56% so far this month.
The Vancouver-based medical cannabis company reported late Monday that it swung to a fiscal fourth-quarter profit of C$79.9 million from a loss of C$5.9 million a year ago, as revenue more than tripled to C$19.1 million. The company also confirmed plans to list its stock in the U.S.
Aleafia Health Inc.’s stock (ALEF.V) soared 26% to a record high, and has now rocketed nearly fourfold (up 289%) just this month. The Canada-based cannabis cultivation and health care services company said it would receive a $10 million investment from the Serruya family. The investment was part of Aleafia’s deal to buy a 51% stake in Serruya-led One Plant, which will allow Aleafia to expand into retail operations.
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Meanwhile, Canopy Growth Corp.shares (WEED.T) rallied 1.0%, putting them on track for a record close, after Benchmark analyst Mike Hickey started coverage of the Canada-based medical cannabis company with a buy rating. His C$100 stock price target is 44% above current levels.
Hickey said his bullish view is based on Canopy’s early leadership the medical cannabis market in Canada, the upcoming legalization of recreational cannabis in Canada on Oct. 17, the potential for international growth as marijuana legalization continues to spread and the large investment from Constellation Brands Inc., (STZ) which was boosted by $4 billion last month.
Canopy’s stock run up 71% over the past three months, and has rocketed more than sixfold (up 523%) over the past year.
Elsewhere, shares of New Age Beverages Corp.(NBEV) hiked up 12% to halt a sharp pullback. The stock had plunged 50% the past two sessions, following a five-day rally that took the stock from $1.57 on Sept. 13 to a record close of $7.85 on Sept. 20.
Tilray Inc.’s stock shot up 8.1%, to snap a three-session pullback streak that shaved 54% off the Canada-based medical cannabis and cannabinoids (CBD) producer’s market value. Before that pullback, the stock had more than tripled (up 228%) month to date.
Among other cannabis stocks, Cronos Group Inc.(CRON.T) slipped 3.1%, and has lost 16% amid a three-session losing streak, and DavidsTea Inc.(DTEA) lost 2.1%, and has lost 30% in three days. Namaste Technologies Inc.shares (N.V) tumbled 16%, after closing at a 9-month high on Monday.
The Horizons Marijuana Life Sciences Index exchange-traded fund rose 0.6% in afternoon trade. It has run up 29% over the past three months, while the S&P 500 index has gained 7.4%.