Cronos (CRON, $5.49) shares downgraded by Stifel analyst, on concerns over investigation around its revenue recognition practices
Cronos Group got a rating downgrade from Stifel analyst W. Andrew Carter .
Carter lowered his rating on the marijuana company’s stock to hold from buy . He also slashed his share price target. Carter cited “Uncertainty surrounding the company’s inability to file its SEC filings and the investigation around its revenue recognition practices,” as a factor behind the downgrade.
Last week, Cronos indicated that it would postpone its earnings release scheduled for Feb. 27 to March 17. The company attributed the delay to a review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.
Nevertheless, Carter believes that Cronos will eventually demonstrate a differentiated revenue growth profile by fulfilling the early demands of the Canadian vapor market and making innovation conducive to winning in the global cannabis category.
Momentum Indicator for CRON turns negative, indicating new downward trend
CRON saw its Momentum Indicator move below the 0 level on June 01, 2023. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 114 similar instances where the indicator turned negative. In of the 114 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for CRON turned negative on May 30, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
CRON moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CRON declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for CRON entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CRON advanced for three days, in of 220 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.587) is normal, around the industry mean (42.146). P/E Ratio (0.000) is within average values for comparable stocks, (53.405). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.704). CRON has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.026). P/S Ratio (7.564) is also within normal values, averaging (54.597).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. CRON’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CRON’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
pharmaceutical, medical marijuana, cannabis
Industry PharmaceuticalsOther
CRON and
Correlation & Price change
A.I.dvisor indicates that over the last year, CRON has been closely correlated with TLRY. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if CRON jumps, then TLRY could also see price increases.
| Ticker / NAME | Correlation To CRON | 1D Price Change % | ||
|---|---|---|---|---|
| CRON | 100% | -0.57% | ||
| TLRY - CRON | 78% Closely correlated | +1.80% | ||
| SNDL - CRON | 73% Closely correlated | +2.11% | ||
| CGC - CRON | 73% Closely correlated | -0.01% | ||
| OGI - CRON | 71% Closely correlated | +5.12% | ||
| ACB - CRON | 66% Loosely correlated | -1.04% | ||
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