GrowGeneration (NASDAQ:GRWG) Issues Quarterly Earnings Results

Key Points

• GrowGeneration beat quarterly expectations: The company reported an adjusted loss of $0.03 per share, better than the expected $0.04 loss, while revenue of $43.22 million exceeded estimates of $42.75 million. Profitability remained weak, with a negative net margin of 11.91%.
• Shares traded near $1.49 and remain well below the 52-week high of $2.40. Analysts maintain a cautious outlook, with two Hold ratings and one Sell rating producing a consensus “Reduce” recommendation.
• CEO Darren Lampert bought 64,098 shares worth approximately $99,352, increasing his ownership by 3.77%. Institutional investors own 36.02% of the company, with several major firms recently increasing their stakes.

GrowGeneration (NASDAQ:GRWG - Get Free Report) announced its quarterly earnings data on Tuesday. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.01, FiscalAI reports. The firm had revenue of $43.22 million for the quarter, compared to analysts' expectations of $42.75 million. GrowGeneration had a negative return on equity of 19.50% and a negative net margin of 11.91%.

GrowGeneration Price Performance

GRWG traded up $0.06 on Tuesday, hitting $1.49. The company had a trading volume of 613,309 shares, compared to its average volume of 396,197. GrowGeneration has a 52-week low of $1.00 and a 52-week high of $2.40. The stock has a fifty day simple moving average of $1.48 and a 200-day simple moving average of $1.34. The firm has a market capitalization of $89.53 million, a P/E ratio of -4.66 and a beta of 2.51.

Analysts Set New Price Targets

GRWG has been the subject of several recent research reports. Alliance Global Partners reiterated a "neutral" rating on shares of GrowGeneration in a research report on Wednesday, May 13th. Weiss Ratings lowered shares of GrowGeneration from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Reduce".

Insider Activity at GrowGeneration

In other GrowGeneration news, CEO Darren Lampert bought 64,098 shares of the firm's stock in a transaction on Monday, May 18th. The stock was acquired at an average price of $1.55 per share, with a total value of $99,351.90. Following the completion of the purchase, the chief executive officer owned 1,765,800 shares of the company's stock, valued at approximately $2,736,990. This trade represents a 3.77% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 8.06% of the company's stock.

Institutional Trading of GrowGeneration

Large investors have recently made changes to their positions in the stock. Jane Street Group LLC grew its position in GrowGeneration by 1,193.2% during the second quarter. Jane Street Group LLC now owns 792,229 shares of the company's stock valued at $741,000 after buying an additional 730,968 shares during the period. AWM Investment Company Inc. grew its position in shares of GrowGeneration by 8.7% during the 4th quarter. AWM Investment Company Inc. now owns 3,380,784 shares of the company's stock valued at $5,071,000 after acquiring an additional 271,249 shares during the period. Renaissance Technologies LLC increased its stake in shares of GrowGeneration by 36.0% in the 4th quarter. Renaissance Technologies LLC now owns 1,019,333 shares of the company's stock worth $1,529,000 after purchasing an additional 270,023 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in GrowGeneration by 55.1% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 519,681 shares of the company's stock worth $972,000 after purchasing an additional 184,626 shares during the period. Finally, Two Sigma Investments LP purchased a new position in GrowGeneration during the third quarter valued at $279,000. 36.02% of the stock is currently owned by institutional investors.

GrowGeneration Company Profile

GrowGeneration Corp. is the largest chain of specialty hydroponic and organic garden centers in the United States, serving commercial and home growers of all experience levels. The company offers a broad assortment of cultivation supplies, including high-efficiency LED lighting, climate control systems, irrigation and fertigation equipment, growing media and nutrients. Through its retail outlets and e-commerce platform, GrowGeneration caters to indoor and outdoor horticultural operations, with a particular focus on the rapidly expanding legal cannabis market.

In addition to its product offerings, GrowGeneration provides design, consulting and project management services for turnkey cultivation facilities.

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