Cronos Group (NASDAQ:CRON) Shares Gap Up - Time to Buy?

Key Points

• Cronos shares gapped up pre-market from $2.80 to $2.96 but were last trading around $2.6450 on heavy volume, reflecting notable intraday volatility.
• Analysts currently give the stock a consensus rating of Hold with a consensus price target of $2.30 (2 Buy, 2 Hold, 1 Sell).
• The company beat expectations last quarter with $0.02 EPS vs. $0.01 est. and revenue of $58.39M vs. $38.51M, but it remains unprofitable (negative net margin ~6.44%) with a market cap near $995M.

Cronos Group Inc. (NASDAQ:CRON - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $2.80, but opened at $2.96. Cronos Group shares last traded at $2.6450, with a volume of 1,645,293 shares trading hands.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Zacks Research lowered shares of Cronos Group from a "strong-buy" rating to a "hold" rating in a report on Tuesday, January 6th. Canaccord Genuity Group initiated coverage on shares of Cronos Group in a research note on Tuesday, January 27th. They set a "buy" rating for the company. TD Securities initiated coverage on shares of Cronos Group in a research note on Tuesday, February 24th. They set a "buy" rating for the company. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $2.30 price objective on shares of Cronos Group in a research note on Wednesday, January 14th. Finally, Wall Street Zen raised shares of Cronos Group from a "sell" rating to a "hold" rating in a research report on Sunday, March 8th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $2.30.

Cronos Group Trading Down 5.5%

The stock's 50-day moving average is $2.59 and its 200-day moving average is $2.60. The stock has a market cap of $995.21 million, a price-to-earnings ratio of -265.23 and a beta of 0.81.

Cronos Group (NASDAQ:CRON - Get Free Report) last posted its earnings results on Thursday, February 26th. The company reported $0.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.01 by $0.01. The firm had revenue of $58.39 million during the quarter, compared to the consensus estimate of $38.51 million. Cronos Group had a negative net margin of 6.44% and a negative return on equity of 1.12%. On average, equities analysts predict that Cronos Group Inc. will post 0.08 earnings per share for the current fiscal year.

Institutional Trading of Cronos Group

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Virtu Financial LLC increased its position in Cronos Group by 10.4% during the 4th quarter. Virtu Financial LLC now owns 52,852 shares of the company's stock worth $139,000 after purchasing an additional 4,990 shares in the last quarter. Pictet Asset Management Holding SA raised its stake in shares of Cronos Group by 19.6% during the fourth quarter. Pictet Asset Management Holding SA now owns 32,631 shares of the company's stock valued at $86,000 after purchasing an additional 5,349 shares during the period. Headlands Technologies LLC raised its stake in shares of Cronos Group by 12.5% during the fourth quarter. Headlands Technologies LLC now owns 63,097 shares of the company's stock valued at $166,000 after purchasing an additional 6,998 shares during the period. Federation des caisses Desjardins du Quebec lifted its position in shares of Cronos Group by 169.7% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 16,371 shares of the company's stock worth $42,000 after purchasing an additional 10,300 shares in the last quarter. Finally, Octavia Wealth Advisors LLC purchased a new position in shares of Cronos Group in the fourth quarter valued at $28,000. Institutional investors and hedge funds own 8.71% of the company's stock.

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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