Cronos Group (NASDAQ:CRON) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Cronos Group shares jumped from $2.72 to $3.02 at the open after the company reported quarterly earnings of $0.09 per share, beating the $0.01 analyst consensus.
• Quarterly revenue reached $53.01 million, exceeding expectations of $44.20 million, although the company reported a negative 1.26% return on equity and a negative 1.14% net margin.
• Analyst sentiment remains mixed, with an overall “Hold” rating and a $2.30 consensus price target, while hedge funds and institutional investors own 8.71% of the stock.

Cronos Group Inc. (NASDAQ:CRON - Get Free Report)'s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $2.72, but opened at $3.02. Cronos Group shares last traded at $3.0260, with a volume of 1,655,786 shares traded.

The company reported $0.09 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.08. The firm had revenue of $53.01 million for the quarter, compared to analysts' expectations of $44.20 million. Cronos Group had a negative return on equity of 1.26% and a negative net margin of 1.14%.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on CRON shares. Wall Street Zen upgraded shares of Cronos Group from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. TD Securities restated a "buy" rating on shares of Cronos Group in a research note on Tuesday, May 12th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Cronos Group in a report on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Cronos Group currently has an average rating of "Hold" and a consensus target price of $2.30.

Hedge Funds Weigh In On Cronos Group

Institutional investors have recently bought and sold shares of the stock. Jones Financial Companies Lllp lifted its stake in Cronos Group by 291.6% in the 1st quarter. Jones Financial Companies Lllp now owns 65,099 shares of the company's stock worth $118,000 after purchasing an additional 48,476 shares in the last quarter. Goldman Sachs Group Inc. grew its position in shares of Cronos Group by 84.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,076,405 shares of the company's stock valued at $1,948,000 after purchasing an additional 493,161 shares in the last quarter. Envestnet Asset Management Inc. purchased a new position in shares of Cronos Group during the second quarter valued at about $36,000. Legal & General Group Plc increased its holdings in shares of Cronos Group by 16.1% in the second quarter. Legal & General Group Plc now owns 195,368 shares of the company's stock worth $374,000 after purchasing an additional 27,111 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Cronos Group by 192.4% in the second quarter. Arrowstreet Capital Limited Partnership now owns 89,683 shares of the company's stock worth $171,000 after buying an additional 59,013 shares in the last quarter. 8.71% of the stock is owned by hedge funds and other institutional investors.

Cronos Group Price Performance

The business has a 50-day moving average of $2.77 and a 200 day moving average of $2.67. The company has a market capitalization of $1.12 billion, a PE ratio of 303.00 and a beta of 0.90.

Cronos Group Company Profile

Cronos Group Inc is a Canadian cannabinoid company dedicated to the cultivation, production and distribution of cannabis and cannabidiol (CBD) products for both medical and adult-use markets. Headquartered in Toronto, Ontario, the company manages operations that span the full cannabis value chain, including breeding, greenhouse cultivation, extraction, product formulation and packaging. Cronos Group's business model emphasizes innovation in product development and scalability in manufacturing to meet evolving regulatory and consumer demands.

The company's branded portfolio includes Peace Naturals, which focuses on pharmaceutical-grade medical cannabis; Spinach, a line of adult-use cannabis oils and tinctures; and Cove, a range of wellness-oriented CBD offerings.

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