Shares of GrowGeneration ( NASDAQ:GRWG) were down by 13.4% as of 11:51 a.m. EDT on Thursday. The specialty hydroponic and organic gardening retailer didn't report any news that would justify the drop, so the most likely reason for it is that some investors are taking profits off the table following the stock's big jump over the last few days.
Full Answer
Why is growgeneration (grwg) stock down Thursday?
Oct 13, 2021 · GRWG Stock Down on Termination of Acquisition Generally, when a company announces they’re terminating an acquisition, for whatever reason, it’s a good thing for shareholders. That’s because...
Is growgeneration's growth rate slowing?
Jan 13, 2022 · Why GrowGeneration Stock Dropped 11.5% at the Open Today. ... Shares of GrowGeneration ... Short-term traders might have been let down here, but long-term investors will likely want to wait for a ...
How much is a share of growgeneration worth?
Aug 12, 2021 · Probably because of Wall Street concerns that GrowGeneration's growth could slow in the second half of this year. That might seem like a misplaced fear given that GrowGeneration raised its...
Is the decline in growgeneration stock price a hallucination?
Apr 03, 2022 · GrowGeneration saw a decline in short interest in the month of February. As of February 28th, there was short interest totaling 5,090,000 shares, a decline of 15.4% from the February 13th total of 6,020,000 shares. Based on an average trading volume of 2,060,000 shares, the short-interest ratio is currently 2.5 days.
Is GrowGeneration a buy right now?
8 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for GrowGeneration in the last twelve months. There are currently 4 h...
How has GrowGeneration's stock price been impacted by COVID-19 (Coronavirus)?
GrowGeneration's stock was trading at $3.89 on March 11th, 2020 when COVID-19 (Coronavirus) reached pandemic status according to the World Health O...
Are investors shorting GrowGeneration?
GrowGeneration saw a decline in short interest in the month of February. As of February 28th, there was short interest totaling 5,090,000 shares, a...
When is GrowGeneration's next earnings date?
GrowGeneration is scheduled to release its next quarterly earnings announcement on Wednesday, May 11th 2022. View our earnings forecast for GrowGe...
How were GrowGeneration's earnings last quarter?
GrowGeneration Corp. (NASDAQ:GRWG) released its quarterly earnings data on Tuesday, March, 1st. The company reported ($0.07) earnings per share (EP...
What guidance has GrowGeneration issued on next quarter's earnings?
GrowGeneration updated its FY 2022 earnings guidance on Tuesday, March, 15th. The company provided earnings per share (EPS) guidance of for the per...
What price target have analysts set for GRWG?
8 brokerages have issued 1-year price objectives for GrowGeneration's shares. Their forecasts range from $8.00 to $55.00. On average, they anticipa...
Who are GrowGeneration's key executives?
GrowGeneration's management team includes the following people: Darren Lampert , Chief Executive Officer & Director Michael S. Salaman , Preside...
Who are some of GrowGeneration's key competitors?
Some companies that are related to GrowGeneration include Innovative Industrial Properties (IIPR) , Canopy Growth (WEED) , MassRoots (MSRT) , C...
The company delivered great Q2 results, but its growth rate could slow in the second half of the year
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
Shares of GrowGeneration ( NASDAQ:GRWG) were plunging 18.2% as of 11:10 a.m. EDT on Thursday. The big decline came after the specialty hydroponic and organic garden retailer reported its second-quarter results before the market opened.
So what
GrowGeneration announced Q2 revenue of $125.9 million. This nearly tripled the company's revenue of $43.5 million in the prior-year period. It also handily beat analysts' consensus revenue estimate of $111.7 million.
Now what
GrowGeneration could win back investors' favor by delivering stronger-than-expected growth in future quarters. Probably the best way for the company to achieve this is to make more acquisitions. GrowGeneration acquired two stores in the second quarter and will add even more thanks to agreements announced in July.
3.3 Analyst's Opinion
GrowGeneration has received a consensus rating of Buy. The company's average rating score is 2.63, and is based on 5 buy ratings, 3 hold ratings, and no sell ratings.
Is GrowGeneration a buy right now?
8 Wall Street research analysts have issued "buy," "hold," and "sell" ratings for GrowGeneration in the last year. There are currently 3 hold ratings and 5 buy ratings for the stock.
How has GrowGeneration's stock been impacted by Coronavirus (COVID-19)?
GrowGeneration's stock was trading at $3.89 on March 11th, 2020 when Coronavirus (COVID-19) reached pandemic status according to the World Health Organization (WHO). Since then, GRWG stock has increased by 98.2% and is now trading at $7.71. View which stocks have been most impacted by COVID-19.
When is GrowGeneration's next earnings date?
GrowGeneration is scheduled to release its next quarterly earnings announcement on Tuesday, March 1st 2022. View our earnings forecast for GrowGeneration.
How can I listen to GrowGeneration's earnings call?
GrowGeneration will be holding an earnings conference call on Tuesday, March 1st at 5:00 PM Eastern. Interested parties can register for or listen to the call using this link.
How were GrowGeneration's earnings last quarter?
GrowGeneration Corp. (NASDAQ:GRWG) issued its quarterly earnings results on Thursday, November, 11th. The company reported $0.07 EPS for the quarter, missing analysts' consensus estimates of $0.09 by $0.02. The business earned $116 million during the quarter, compared to analyst estimates of $115.28 million.
What guidance has GrowGeneration issued on next quarter's earnings?
GrowGeneration issued an update on its FY 2021 earnings guidance on Monday, February, 7th. The company provided earnings per share (EPS) guidance of for the period. The company issued revenue guidance of $420 million-$422 million, compared to the consensus revenue estimate of $437.58 million.
Key Points
Astute investors might have noticed something in the company's revised financial guidance.
NASDAQ: GRWG
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
What happened
Hydroponics and indoor plant-growth products retailer GrowGeneration ( GRWG -3.63% ) announced the termination of an acquisition agreement today along with updated guidance as a result. When investors did the math, its stock took a hit. As of 1:30 p.m. EDT on Wednesday, GrowGeneration shares were down about 11.4%, near the lows of the day.
So what
In July 2021, GrowGeneration said it would acquire HGS Hydro, a leading chain of hydroponic garden centers. Today the companies announced the mutual termination of the deal, and GrowGeneration said it would instead enter the New Mexico cannabis market by acquiring All Seasons Gardening, a different indoor-outdoor garden supply company.
Now what
Business had been looking good for GrowGeneration. At the time of its first-quarter 2021 financial release, the company increased its annual revenue guidance to a range with a midpoint of $460 million, and adjusted EBITDA to $56 million.
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
The cannabis supplier is growing fast, but not as fast as the stock
Jennifer grew up in New York and parlayed her finance and public administration degrees into helping good causes with non-profit work. She has now turned her focus to helping investors lead happier and richer lives at The Motley Fool.
What happened
GrowGeneration ( NASDAQ:GRWG), which sells hydroponic supplies and equipment for the cannabis industry, saw its stock skyrocket at the beginning of the year. But it's since been slowly dropping, and it lost another 21% last month, according to data from S&P Global Market Intelligence.
So what
GrowGeneration is a cannabis industry supplier, not a grower itself. That makes it more immune to industry ups and downs and gives it more leverage to grow as the industry grows, making it a popular stock to hold.
Now what
GrowGeneration has created a cannabis-supply empire with multiple revenue streams, including its wholesale, retail, and private-label products and its omnichannel shopping options. Growth is intense, but not quite as fantastic as its past stock gains -- which partially explains why the stock is now cooling down.
NASDAQ: GRWG
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
The steep decline in stock price is not a hallucination
Following a September swoon across the broader market, many cannabis operators found their stock prices tumbling. This included GrowGeneration ( GRWG 2.21% ), an ancillary cannabis company specializing in accessories such as lighting and hydroponics to support cannabis plant growth.
Current numbers are not the problem
As more states legalize medical- and recreational-use cannabis, more companies are expanding their footprints across the U.S.
Slowing growth is projected for the second half of the year
But the growth that took place during the first half of the year may not necessarily be duplicated in the second half. After highlighting the purchase agreement entered into with HSG Hydro, which would have given GrowGeneration the third-largest chain of hydroponic garden centers in the U.S., the company recently terminated that agreement.
What does the future hold for the stock?
The stock price has been tumbling -- from $67 in February to a recent $22 -- amid a combination of factors, including broader market pressures, slowing growth, and the amount of time it's been since the Biden administration took over, when hype was at a peak with anticipation of the potential for federal legalization of recreational-use cannabis.
Premium Investing Services
Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.
What happened
Shares of GrowGeneration ( GRWG -4.58% ) were down by 13.4% as of 11:51 a.m. EDT on Thursday. The specialty hydroponic and organic gardening retailer didn't report any news that would justify the drop, so the most likely reason for it is that some investors are taking profits off the table following the stock's big jump over the last few days.
So what
GrowGeneration announced spectacular second-quarter results last week, posting all-time high revenues and earnings. It also provided optimistic guidance for the rest of the year and for 2021.
Now what
This company's long-term prospects aren't changed one bit by the volatility in its share price. The U.S. cannabis industry is still in an early stage, and GrowGeneration is poised to continue expanding to support its ever-increasing needs for gardening supplies.