Cresco Labs (OTCMKTS:CRLBF) Shares Gap Down - Should You Sell?

Key Points

• Cresco Labs Inc. shares opened at $1.14, down from a previous close of $1.20, with the last traded price at $1.21.
• Canaccord Genuity Group downgraded Cresco Labs from a "strong-buy" to a "moderate buy" rating, although the stock retains a consensus rating of "Buy".
• The company reported a quarterly revenue of $163.62 million, but missed earnings expectations with a reported EPS of ($0.05).

Cresco Labs Inc. (OTCMKTS:CRLBF - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $1.20, but opened at $1.14. Cresco Labs shares last traded at $1.21, with a volume of 108,306 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Canaccord Genuity Group lowered shares of Cresco Labs from a "strong-buy" rating to a "moderate buy" rating in a research note on Tuesday, June 3rd. One research analyst has rated the stock with a Strong Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Buy".

Cresco Labs Trading Down 6.2%

The stock has a market cap of $483.65 million, a price-to-earnings ratio of -7.58 and a beta of 1.56. The firm's 50 day moving average is $0.91 and its two-hundred day moving average is $0.75. The company has a quick ratio of 2.22, a current ratio of 3.10 and a debt-to-equity ratio of 1.33.

Cresco Labs (OTCMKTS:CRLBF - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.01). The business had revenue of $163.62 million for the quarter, compared to analyst estimates of $162.00 million. Cresco Labs had a negative return on equity of 11.77% and a negative net margin of 6.67%. Equities analysts anticipate that Cresco Labs Inc. will post -0.2 EPS for the current year.

About Cresco Labs

Cresco Labs Inc, together with its subsidiaries, cultivates, manufactures, and sells retail and medical cannabis products in the United States. It provides cannabis in flowers, vape pens, live resins, disposable pens, and extracts under the Cresco brand; vape carts, vape pens, flower, popcorn, shake, pre-rolls, shorties, and concentrates under the High Supply brand; vapes and gummies under the Good News brand; vapes and edibles under the Wonder Wellness Co brand; and tinctures, capsules, salves, and sublingual oils under the Remedi brand.