Aurora Cannabis (NYSE:ACB) Downgraded by MKM Partners

Daniel Fowler
November 18, 2019

Adjusted EBITDA was negative $39.7 million for the period ended September 30, compared to $26.6 in the fourth quarter of 2019. They issued a "neutral" rating and a $7.00 price objective for the company.

Revenue in the fiscal second quarter landed at C$76.6 million, down from the C$90.5 million reported in the previous quarter.

For the third quarter, Tilray reported a net loss of $35.7 million, or 36 cents a share, compared to $18.7 million, or 20 cents a share, in the year-ago period. Canaccord Genuity set a $13.50 target price on shares of Aurora Cannabis and gave the company a buy rating in a research note on Friday, September 13th. For the next fiscal year, analysts anticipate that the company will report earnings of ($0.04) per share, with EPS estimates ranging from ($0.15) to $0.03.

Aurora Cannabis Inc (TSE:ACB) (NYSE:ACB) became the latest big pot firm to disappoint investors after it posted its results after the bell Thursday that missed estimates. The company traded as low as C$3.59 and last traded at C$3.94, with a volume of 7076877 shares traded. The company has market cap of $2.78 billion.

The company has a quick ratio of 0.98, a current ratio of 1.52 and a debt-to-equity ratio of 14.69.

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Aurora said it made a decision to stop construction activity at its Aurora Nordic 2 facility in Denmark, which is expected to save approximately $80 million over the next 12 months. Compass Point set a $8.00 target price on shares of Aurora Cannabis and gave the stock a "hold" rating in a research report on Thursday, September 12th.

The stock of Aurora Cannabis Inchares (NYSE:ACB) registered an increase of 3.78% in short interest. The stock's 50 day simple moving average is $3.86 and its two-hundred day simple moving average is $6.25. Finally, Cantor Fitzgerald raised Aurora Cannabis from a "neutral" rating to an "overweight" rating in a research report on Friday. Piper Jaffray Companies also issued estimates for Aurora Cannabis' Q4 2021 earnings at $0.02 EPS and FY2021 earnings at $0.04 EPS. One research analyst has rated the stock with a sell rating, seven have given a hold rating and nine have assigned a buy rating to the company's stock. The company now has an average rating of Hold and a consensus target price of $7.27.

A number of large investors have recently added to or reduced their stakes in ACB. Calton & Associates Inc. lifted its stake in Aurora Cannabis by 11.0% in the second quarter. Resources Investment Advisors LLC. now owns 4,962 shares of the company's stock worth $39,000 after purchasing an additional 4,426 shares during the period. Sumitomo Mitsui Trust Holdings Inc. lifted its holdings in shares of Aurora Cannabis by 15.2% in the second quarter. JPMorgan Chase & Co. now owns 2,609,856 shares of the company's stock worth $22,680,000 after buying an additional 946,887 shares in the last quarter. Janus Henderson Group PLC grew its holdings in Aurora Cannabis by 98.2% during the 2nd quarter. Finally, Swiss National Bank lifted its holdings in shares of Aurora Cannabis by 5.5% in the second quarter. North Star Investment Management Corp. now owns 17,500 shares of the company's stock worth $137,000 after acquiring an additional 3,200 shares during the period.

Canopy Growth and others blamed their woes on an oversupply of cannabis and returns, after ramping up production with the opening of several new greenhouses in recent months despite a lack of retail outlets.

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