Cresco Labs (OTCMKTS:CRLBF) Shares Gap Down - What's Next?

Key Points

• Cresco Labs Inc. shares gapped down from $1.51 to open at $1.29, reflecting a trading decrease of 9.1% with a current trading price of $1.42.
• Analysts have downgraded Cresco Labs from a "strong-buy" to a "moderate buy" rating, although the average rating remains at "Buy" according to MarketBeat.com.
• The company reported a loss of ($0.05) earnings per share for the last quarter, which was below analysts' expectations of ($0.04), despite achieving revenue of $163.62 million.

Cresco Labs Inc. (OTCMKTS:CRLBF - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $1.51, but opened at $1.29. Cresco Labs shares last traded at $1.42, with a volume of 240,701 shares.

Analysts Set New Price Targets

Separately, Canaccord Genuity Group downgraded Cresco Labs from a "strong-buy" rating to a "moderate buy" rating in a research report on Tuesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Buy".

Cresco Labs Price Performance

The company has a quick ratio of 2.22, a current ratio of 3.10 and a debt-to-equity ratio of 1.33. The company has a 50 day simple moving average of $0.85 and a 200-day simple moving average of $0.74. The stock has a market cap of $589.22 million, a price-to-earnings ratio of -9.23 and a beta of 1.56.

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