Cresco Labs (OTCMKTS:CRLBF) Shares Gap Down - Here's Why

Key Points

• Shares gapped down — Cresco Labs opened at $1.10 after a $1.19 close, last traded at $1.1435 with about 127,733 shares changing hands, and the stock is reported down roughly 5.5%.
• Analyst action — Zacks Research upgraded CRLBF from "strong sell" to "hold" on March 31, while the broker mix shows one Strong Buy and one Hold and an average rating of "Buy."
• Earnings and fundamentals — The company reported ($0.02) EPS (meeting estimates) and $164.04M revenue (above $160.87M est.), but remains unprofitable with a ~20.65% net margin loss and sell-side forecasts of about -0.11 EPS for the fiscal year.

Shares of Cresco Labs Inc. (OTCMKTS:CRLBF - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $1.19, but opened at $1.10. Cresco Labs shares last traded at $1.1435, with a volume of 127,733 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Zacks Research upgraded shares of Cresco Labs from a "strong sell" rating to a "hold" rating in a research report on Tuesday, March 31st. One investment analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, Cresco Labs currently has an average rating of "Buy".

Cresco Labs Stock Down 5.5%

The company has a debt-to-equity ratio of 1.72, a quick ratio of 1.60 and a current ratio of 2.59. The firm has a fifty day moving average price of $0.97 and a 200 day moving average price of $1.07. The firm has a market capitalization of $565.10 million, a price-to-earnings ratio of -2.88 and a beta of 1.49.

Cresco Labs (OTCMKTS:CRLBF - Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). The business had revenue of $164.04 million during the quarter, compared to analysts' expectations of $160.87 million. Cresco Labs had a negative return on equity of 16.61% and a negative net margin of 20.65%. As a group, sell-side analysts expect that Cresco Labs Inc. will post -0.11 EPS for the current fiscal year.

About Cresco Labs

Cresco Labs is a vertically integrated, multi-state cannabis operator in the United States. The company engages in the cultivation, manufacturing and distribution of a broad range of cannabis products, including flower, pre-rolled joints, concentrates, vaporizers, edibles and tinctures. Cresco Labs' operations span cultivation facilities, processing laboratories and a network of wholesale distribution centers that supply licensed dispensaries and retail outlets across key cannabis markets.

The company's product portfolio is organized under several branded platforms, such as MÜV, Reserve and High Supply, each designed to address different segments of the adult-use and medical cannabis markets.

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