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Mar 03, 2020
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Cronos (CRON, $5.49) shares downgraded by Stifel analyst, on concerns over investigation around its revenue recognition practices

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.

 

Related Ticker: CRON

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


CRON in upward trend: 10-day moving average broke above 50-day moving average on October 27, 2026

The 10-day moving average for CRON crossed bullishly above the 50-day moving average on October 27, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 18 of 20 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 21, 2026. You may want to consider a long position or call options on CRON as a result. In 91 of 105 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 87%.

The Moving Average Convergence Divergence (MACD) for CRON just turned positive on October 21, 2026. Looking at past instances where CRON's MACD turned positive, the stock continued to rise in 52 of 58 cases over the following month. The odds of a continued upward trend are 90%.

CRON moved above its 50-day moving average on November 02, 2026 date and that indicates a change from a downward trend to an upward trend.

Following a +5.03% 3-day Advance, the price is estimated to grow further. Considering data from situations where CRON advanced for three days, in 168 of 229 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.

Bearish Trend Analysis

The 10-day RSI Indicator for CRON moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 22 similar instances where the indicator moved out of overbought territory. In 21 of the 22 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 47 of 55 cases where CRON's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 85%.

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 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.

CRON broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. CRON’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 53 (best 1 - 100 worst) indicates that the company is fair valued 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 (1.148) is normal, around the industry mean (8.029). P/E Ratio (17.526) is within average values for comparable stocks, (-0.853). Projected Growth (PEG Ratio) (0.020) is also within normal values, averaging (2.152). Dividend Yield (0.000) settles around the average of (0.047) among similar stocks. P/S Ratio (6.993) is also within normal values, averaging (178.797).

The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable 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 PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average 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 Profit vs. Risk Rating rating for this company is 100 (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 84, placing this stock worse than average.

Notable companies

The most notable companies in this group are Teva Pharmaceutical Industries Limited (NYSE:TEVA), ZOETIS (NYSE:ZTS), Elanco Animal Health (NYSE:ELAN), Bausch Health Companies (NYSE:BHC), BioCryst Pharmaceuticals (NASDAQ:BCRX), Tilray Brands Inc. (NASDAQ:TLRY), Canopy Growth Corp (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB), Journey Medical Corp (NASDAQ:DERM).

Industry description

A generic drug contains the same chemical substance as a drug that was originally protected by patents. Generic drugs are generally sold at cheaper price points, compared to name-brand pharmaceuticals, after patents for the more expensive drugs lapse. The generic drug industry has created a major market, thanks to the lower pricing. According to the Center for Justice and Democracy at New York Law School, 80 percent of all drugs prescribed are generic, and generic drugs are chosen 94 percent of the time when they are available. But their manufacturers must be able to prove to the FDA that they can be effective substitutes for the original drugs. Some of the major generic drug makers include Zoetis, Inc., Allergan plc and Mylan N.V.

Market Cap

The average market capitalization across the Pharmaceuticals: Generic Industry is 4.32B. The market cap for tickers in the group ranges from 2.12K to 68.49B. MKGAF holds the highest valuation in this group at 68.49B. The lowest valued company is CANQF at 2.12K.

High and low price notable news

The average weekly price growth across all stocks in the Pharmaceuticals: Generic Industry was -1%. For the same Industry, the average monthly price growth was -7%, and the average quarterly price growth was 2%. BHC experienced the highest price growth at 26%, while UPC experienced the biggest fall at -49%.

Volume

The average weekly volume growth across all stocks in the Pharmaceuticals: Generic Industry was 51%. For the same stocks of the Industry, the average monthly volume growth was 14% and the average quarterly volume growth was -18%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 43
P/E Growth Rating: 58
Price Growth Rating: 61
SMR Rating: 87
Profit Risk Rating: 83
Seasonality Score: 8 (-100 ... +100)
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General Information

pharmaceutical, medical marijuana, cannabis

Industry PharmaceuticalsGeneric

Industry
Pharmaceuticals Other
Address
4491 Concession Road 12
Phone
+1 416 504-0004
Employees
610
Web
https://www.thecronosgroup.com
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Cronos (CRON, $5.49) shares downgraded by Stifel analyst, on concerns over investigation around its revenue recognition practices