And investors are getting more and more worried that the Canadian pot producer will have difficulty paying back its creditors—especially because it’s going to be a while before the company is profitable. And so investors have piled out of the stock. Aurora Cannabis (ACB) shares have dropped almost 22% since the start of 2020 alone.
Full Answer
What happened to ACACB stock?
Jan 21, 2021 · What happened. Shares of Aurora Cannabis (ACB-4.10%) were down 4.9% as of 12:15 p.m. EST on Thursday. A recent sales distribution agreement has the company further …
Is ACB stock headed for a forced conversion?
Jul 31, 2019 · ACB stock continues to fade, dropping nearly 40% from March highs. Aurora stock admittedly still is up 25% for the year — hardly a terrible performance — but the more-recent …
Is ACB stock drop a problem for Aurora Cannabis?
Jan 22, 2021 · Shares of Canadian cannabis grower Aurora Cannabis ( ACB-3.69%) dropped today after the company announced a new share offering. The stock was down 7.4% as of 10:45 a.m. …
Is ACB corporation going bankrupt?
Jul 31, 2019 · ACB stock continues to fade, dropping nearly 40% from March highs. Aurora stock admittedly still is up 25% for the year -- hardly a terrible performance -- but the more-recent …
What is the prediction for ACB stock?
The 10 analysts offering 12-month price forecasts for Aurora Cannabis Inc have a median target of 5.06, with a high estimate of 5.99 and a low estimate of 2.35. The median estimate represents a +80.46% increase from the last price of 2.81.
Is ACB a buy or sell?
...
Momentum Scorecard. More Info.
| Zacks Rank | Definition | Annualized Return |
|---|---|---|
| 1 | Strong Buy | 24.97% |
| 2 | Buy | 18.45% |
| 3 | Hold | 10.03% |
| 4 | Sell | 5.70% |
Is canopy growth a buy Zacks?
How many shares of ACB are there?
| Avg Vol (3 month) 3 | 1.83M |
|---|---|
| Shares Outstanding 5 | 198.23M |
| Implied Shares Outstanding 6 | N/A |
| Float 8 | 198.11M |
| % Held by Insiders 1 | 0.03% |
How Aurora Cannabis Has Grown
On March 9, 2018, Aurora closed the offering of a convertible debenture. Including the underwriters’ allotment, Aurora Cannabis Inc. raised 230 million CAD.
Why Aurora has a Convert Problem
There are several reasons why Aurora Cannabis may not be able to repay all of the converts in cash. First, of the 390 million CAD, some 43 million CAD is restricted. But that figure actually may rise.
Near-Term Risk to ACB Stock
It’s worth repeating: Aurora Cannabis Inc. isn’t headed toward a March bankruptcy filing. In fact, we’ve recently heard a similar story from skeptics toward another growth stock: Tesla (NASDAQ: TSLA ). Tesla had $920 million in convertible debt that came due on March 1.
The cannabis company is aiming to shore up its balance sheet
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years.
What happened
Shares of Canadian cannabis grower Aurora Cannabis ( NASDAQ:ACB) dropped today after the company announced a new share offering. The stock was down 7.4% as of 10:45 a.m. EST.
So what
Aurora announced that it will be issuing 12 million new shares, plus additional warrants to purchase shares. The agreement with underwriters is a "bought deal" arrangement, meaning the underwriter agrees to purchase all of the offered units, but terms result in a lower share price.
Now what
The marijuana company has been working on a business transformation over the past year. The plan has included reducing production with facility closures and capacity restrictions to better align with the market. It also has resulted in job reductions, including last week, after the company announced a new sales distribution agreement .
Some analysts are questioning whether the marijuana company's recent gains are justified
Joe honed his investing skills as an analyst for Stock Advisor, Supernova, and Fool One. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns during its existence.
What happened
Shares of Aurora Cannabis ( NASDAQ:ACB) sank on Wednesday after analysts raised concerns that the popular marijuana stock's price gains may have come too far, too fast.
So what
Aurora's shares surged as much as 180% following the cannabis producer's better-than-expected third-quarter sales results on May 14. However, soon thereafter, multiple analysts began to question whether such a strong performance was warranted.
Now what
Stocks that rise rapidly can fall just as quickly. We've seen this type of extreme volatility in Aurora's stock before, and we may continue to see it in the days and weeks ahead. Ultimately, however, the stock's long-term performance will be determined by Aurora's ability to reach sustained profitability.
A Closer Look at ACB Stock
The most recent multi-year peak of ACB stock occurred in March of 2019. For a brief moment, traders bid the share price up to the $115 level.
Tough Numbers
Aurora’s most recently reported quarterly data is from the company’s fiscal third quarter. The quarter ended on March 31, so it reflects some but not all of the coronavirus’ impact.
A Slow-Growth Scenario
Aurora can’t be blamed for issues that are facing the entire cannabis industry.
The Bottom Line on ACB Stock
Even with the company’s challenges, it’s perfectly OK to keep ACB stock on your watch list. Timing is essential, though. Before buying the shares, investors should wait until Aurora and the cannabis industry in general show signs of improvement.
The Canadian cannabis producer delivered much worse-than-expected fiscal 2020 first-quarter results
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
What happened
Aurora Cannabis ( NASDAQ:ACB) shares were tanking 8.8% lower as of 10:03 a.m. EST on Friday after falling as much as 17.3% earlier in the morning. This marks the second consecutive day of double-digit declines for the Canadian marijuana stock.
So what
Were Aurora's Q1 results bad enough to warrant such a big sell-off? The extent of how low the stock should go is debatable, but the results were really bad.
Now what
Aurora is suspending efforts to finish construction on its Aurora Nordic 2 facility and on its Aurora Sun facility. The company expects these moves to cut capital expenditures by close to CA$190 million.
ACB Stock: Great Industry, Bad Business Model
Every several years, a new industry emerges that promises 1,000%-plus returns. Legalized marijuana is one of them.
Aurora Meets the Lousy Farming Business
As attractive as marijuana growing sounds, it’s still an agriculture business.
ACB on the Brink of Bankruptcy
Aurora might yet figure out a marketing plan. But investors won’t have much time to wait.