Zacks Investment Research Upgrades Aurora Cannabis (NYSE:ACB) to Hold

Aurora Cannabis (NYSE:ACB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on …

Aurora Cannabis logoAurora Cannabis (NYSE:ACB) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Thursday, Zacks.com reports.

According to Zacks, “Aurora Cannabis Inc is a Canada-based company engaged in the production and distribution of medical cannabis. The Company is vertically integrated and horizontally diversified across every key segment of the value chain, from facility engineering and design to cannabis breeding and genetics research, cannabis and hemp production, derivatives, home cultivation, wholesale and retail distribution. The Company’s purpose-built facilities, which integrate technologies across all processes, are defined by automation and customization. The Company has a funded capacity of more than 500,000 kilograms per year, as well as sales and operations in 24 countries across 5 continents. “

Other analysts have also issued reports about the stock. Compass Point initiated coverage on shares of Aurora Cannabis in a research report on Monday, July 8th. They issued a “neutral” rating for the company. ValuEngine raised shares of Aurora Cannabis from a “hold” rating to a “buy” rating in a research report on Wednesday, August 21st. LADENBURG THALM/SH SH initiated coverage on shares of Aurora Cannabis in a research report on Wednesday, July 17th. They issued a “buy” rating and a $9.00 price target for the company. Stifel Nicolaus initiated coverage on shares of Aurora Cannabis in a research report on Wednesday, June 5th. They issued a “hold” rating for the company. Finally, Piper Jaffray Companies initiated coverage on shares of Aurora Cannabis in a research report on Monday, August 12th. They issued a “neutral” rating and a $7.00 price target for the company. Six investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average target price of $8.23.

NYSE ACB opened at $5.95 on Thursday. The company has a 50 day simple moving average of $6.06 and a 200-day simple moving average of $7.66. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.37 and a quick ratio of 1.98. The firm has a market capitalization of $6.41 billion, a price-to-earnings ratio of -27.05 and a beta of 2.47. Aurora Cannabis has a 52-week low of $4.58 and a 52-week high of $12.52.

A number of institutional investors and hedge funds have recently modified their holdings of ACB. Mackey Komara & Dankovich LLC bought a new position in Aurora Cannabis during the second quarter valued at approximately $27,000. Executive Wealth Management LLC raised its position in Aurora Cannabis by 102.1% during the second quarter. Executive Wealth Management LLC now owns 3,900 shares of the company’s stock valued at $30,000 after acquiring an additional 1,970 shares in the last quarter. Kistler Tiffany Companies LLC raised its position in Aurora Cannabis by 77.9% during the second quarter. Kistler Tiffany Companies LLC now owns 4,075 shares of the company’s stock valued at $32,000 after acquiring an additional 1,785 shares in the last quarter. Resources Investment Advisors LLC. raised its position in Aurora Cannabis by 825.7% during the second quarter. Resources Investment Advisors LLC. now owns 4,962 shares of the company’s stock valued at $39,000 after acquiring an additional 4,426 shares in the last quarter. Finally, Manchester Financial Inc. bought a new position in Aurora Cannabis during the second quarter valued at approximately $43,000. 8.89% of the stock is currently owned by hedge funds and other institutional investors.

Aurora Cannabis Company Profile

Aurora Cannabis Inc produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution.

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Aurora Cannabis is the New Champ; But Being Champ Isn’t Cheap

Aurora Cannabis Inc. (TSX:ACB) (NYSE: ACB) filed its year-end earnings for fiscal 2019 Wednesday aftermarket, the longtime number one contender …

Aurora Cannabis Inc. (TSX:ACB) (NYSE: ACB)filed its year-end earnings for fiscal 2019 Wednesday aftermarket, the longtime number one contender removing all existing doubt about its rights to the title. ACB leads the Canadian cannabis sector in production, sales and revenue. Having got there using the blunt force trauma of money, they also lead in leverage. The Deep Dive has the goods:

Aurora didn’t do themselves any favors by guiding for $100 million to $107 million in Q4 total sales, then only delivering $98 million. The stock started to slip right away in the aftermarket and finished off -8.7% at $7.77 on 19 million shares; the most volume it’s seen since May. But there’s no way around calling this fiscal 2019 a success. Aurora has passed Canopy Growth Corp. (TSX:WEED) to become the undisputed leader in cannabis revenue and unit sales, all at one of the best margins in the business (56% gross margin on cannabis).

Aurora has convincingly passed Canopy Growth in cannabis unit sales…
…and in cannabis revenue.

17,793 kgs is nearly double Aurora’s unit sales from last quarter, in a period where rival and former champ Canopy’s unit sales were effectively flat. The revenue grew right along with it, and Aurora managed to show some high-level detail on their various revenue segments, breaking down the margin for medical sales, rec sales and bulk sales. This served as a telegraphing of their versatility and potential, while out-classing a flat-lining competitor who – for two quarters in a row – has obscured the margin of their entire cannabis division. “We’re growing and selling high-test,” Aurora is telling us, “and we have all sorts of places to sell it.”

ACB putting on a CLINIC in consistency and reporting. Are you paying attention, Canopy?

Investment portfolio

Following Aurora’s investment portfolio through the capital markets is a bit like scoring a bull-riding competition from a tilt a whirl. The company marks its investments to market each period, booking synthetic gains and losses that make it hard to figure out how the portfolio is doing both in terms of investment alpha and practical value to the business. But this isn’t The Dive’s first rodeo. Here’s our read on two of the most relevant segments.

Investments in retail sales infrastructure

Aurora keeps their investment in retail cannabis liquid, and the storefront vertical is looking better this quarter than it did last quarter. Their stake in Alcanna (TSX:CLIQ)– an Alberta chain of liquor stores with cannabis ambitions – recovered $15.6 million of the $68.7 million impairment charge that it took over the year on CLIQ.

Alberta has established itself as a national leader in storefront retail cannabis, and Aurora likes to bet on the favorite. In June, they added $1 million worth of convertible debentures to the $10M they were already holding in cannabis retailer High Tide Inc. (CSE:HITI). Both rounds of debs convert at $0.75.

Cultivation Investments

The trend at Aurora when it comes to investments in cultivators is to go after quality, and keep it in-house. The company spent the year unwinding an investment in The Green Organic Dutchman (TSX:TGOD), and managed to make the final 28 million shares BMO’s problem on September 4th. They kept 16 million warrants, either just in case or because they couldn’t find a taker. The TGOD warrants are listed and trading (TSX:TGOD.WT), do about 50,000 units of volume per day, so 16 million warrants would crush the market.

Aurora’s September 4th block trade came the day after TGOD announced the long awaited licensing of their Hamilton greenhouse. Ever the optimists, TGOD HQ sent word that they were very pleased that the world’s largest cannabis company wants nothing to do with them: Aurora’s sale forfeits their right to buy any product that TGOD might eventually produce at a discount. Aurora doesn’t seem too broken up about that.

“Nobody is going to just give you the number one spot, you have to buy it.”

Aurora became the undisputed number one cultivator in Canada through pure force of finance. They built a story that bankers could sell, and poured the proceeds into the largest operating cannabis greenhouses in the world. Now, finally, they have them working respectably. Along the way, as companies like Medreleaf, Cannimed and Whistler Medical showed that they were capable operators growing into worthy competitors, Aurora just flat-out bought them, and never MIND the cost. The result is a bloated balance sheet that carries more than $640 million in total debt with a $314 million operating loss (on the year), and a cash burn near $200 million, with profitability still a long ways off.

If Aurora is worried, they sure aren’t acting like it. They just added another $200 million to their existing $200 million BMO credit facility, and still have a $750 million shelf prospectus filed with a $400 million supplement.

And why not? If cannabis is going to be a profitable sector, the biggest profit is going to come from the biggest company with the highest margin, and that’s what Aurora is. Notably, the company’s single largest operating expense in fiscal 2019 was $107 million in stock-based compensation; an easy thing to defend when you’re the very best.


Information for this briefing was found via Sedar and Aurora Cannabis. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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Aurora Cannabis (TSE:ACB) Shares Down 7.4%

Aurora Cannabis Inc (TSE:ACB) traded down 7.4% during mid-day trading on Thursday . The company traded as low as C$7.60 and last traded at …

Aurora Cannabis logoAurora Cannabis Inc (TSE:ACB) traded down 7.4% during mid-day trading on Thursday . The company traded as low as C$7.60 and last traded at C$7.88, 6,255,901 shares traded hands during trading. A decline of 37% from the average session volume of 9,951,871 shares. The stock had previously closed at C$8.51.

Separately, Desjardins lowered their target price on Aurora Cannabis from C$16.50 to C$14.00 and set a “buy” rating for the company in a research note on Friday. One analyst has rated the stock with a hold rating and four have given a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus target price of C$14.17.

The business has a 50 day moving average of C$8.02 and a 200-day moving average of C$10.20. The company has a current ratio of 2.37, a quick ratio of 1.80 and a debt-to-equity ratio of 14.55. The firm has a market capitalization of $7.86 billion and a P/E ratio of -31.23.

Aurora Cannabis Company Profile (TSE:ACB)

Aurora Cannabis Inc produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution.

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Aurora Cannabis (TSE:ACB) Trading Down 7.4%

Aurora Cannabis Inc (TSE:ACB)’s share price traded down 7.4% during mid-day trading on Thursday . The stock traded as low as C$7.60 and last …

Aurora Cannabis logoAurora Cannabis Inc (TSE:ACB)’s share price traded down 7.4% during mid-day trading on Thursday . The stock traded as low as C$7.60 and last traded at C$7.88, 6,255,901 shares were traded during trading. A decline of 37% from the average session volume of 9,951,871 shares. The stock had previously closed at C$8.51.

Separately, Desjardins cut their price target on Aurora Cannabis from C$16.50 to C$14.00 and set a “buy” rating for the company in a report on Friday. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and an average target price of C$14.17.

The firm has a fifty day simple moving average of C$8.02 and a 200-day simple moving average of C$10.20. The firm has a market cap of $7.86 billion and a price-to-earnings ratio of -31.23. The company has a debt-to-equity ratio of 14.55, a quick ratio of 1.80 and a current ratio of 2.37.

Aurora Cannabis Company Profile (TSE:ACB)

Aurora Cannabis Inc produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution.

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Castle Rock Wealth Management LLC Takes $106000 Position in Aurora Cannabis Inc (NYSE:ACB)

Geode Capital Management LLC purchased a new position in Aurora Cannabis during the fourth quarter valued at $515,000. Deutsche Bank AG …

Aurora Cannabis logoCastle Rock Wealth Management LLC purchased a new position in Aurora Cannabis Inc (NYSE:ACB) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 13,361 shares of the company’s stock, valued at approximately $106,000.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in ACB. Geode Capital Management LLC purchased a new position in Aurora Cannabis during the fourth quarter valued at $515,000. Deutsche Bank AG bought a new stake in shares of Aurora Cannabis in the 4th quarter worth about $3,105,000. Mercer Global Advisors Inc. ADV bought a new stake in shares of Aurora Cannabis in the 1st quarter worth about $128,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in Aurora Cannabis by 6.5% during the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 160,299 shares of the company’s stock valued at $1,451,000 after buying an additional 9,761 shares in the last quarter. Finally, Patriot Financial Group Insurance Agency LLC bought a new stake in Aurora Cannabis during the 1st quarter valued at about $57,000. Institutional investors and hedge funds own 8.89% of the company’s stock.

Shares of ACB opened at $5.95 on Friday. The firm has a 50-day moving average price of $6.06 and a 200 day moving average price of $7.66. Aurora Cannabis Inc has a 12-month low of $4.58 and a 12-month high of $12.52. The company has a debt-to-equity ratio of 0.10, a current ratio of 2.37 and a quick ratio of 1.98.

ACB has been the subject of a number of research analyst reports. Bank of America lowered shares of Aurora Cannabis from a “buy” rating to a “neutral” rating and set a $7.30 price objective for the company. in a report on Thursday, July 18th. Compass Point assumed coverage on shares of Aurora Cannabis in a research report on Monday, July 8th. They set a “neutral” rating on the stock. Piper Jaffray Companies began coverage on shares of Aurora Cannabis in a research report on Monday, August 12th. They set a “neutral” rating and a $7.00 target price on the stock. Stifel Nicolaus initiated coverage on shares of Aurora Cannabis in a research report on Wednesday, June 5th. They issued a “hold” rating on the stock. Finally, LADENBURG THALM/SH SH started coverage on shares of Aurora Cannabis in a research note on Wednesday, July 17th. They set a “buy” rating and a $9.00 price objective for the company. Six analysts have rated the stock with a hold rating and six have issued a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $8.23.

Aurora Cannabis Profile

Aurora Cannabis Inc produces and distributes medical cannabis products. It is vertically integrated and horizontally diversified across various segments of the cannabis value chain, from facility engineering and design to cannabis breeding, genetics research, production, derivatives, high value-add product development, home cultivation, wholesale, and retail distribution.

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Institutional Ownership by Quarter for Aurora Cannabis (NYSE:ACB)

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