GrowGeneration (NASDAQ:GRWG) Trading 5.4% Higher - Here's Why

Key Points

• Shares of GrowGeneration jumped 5.4% to $1.18 on Monday, with roughly 386,064 shares traded—about a 46% increase over average volume.
• The company reported a quarterly loss of ($0.12) EPS, missed revenue expectations ($37.82M vs. $40.02M est.), and showed a negative net margin (14.87%) and ROE (22.90%); analysts forecast -0.23 EPS for the current fiscal year.
• Analyst coverage is mixed (one Buy, one Hold, one Sell) with a consensus rating of Hold and a consensus target price of $2.50.

GrowGeneration Corp. (NASDAQ:GRWG - Get Free Report)'s stock price rose 5.4% during mid-day trading on Monday . The stock traded as high as $1.18 and last traded at $1.18. Approximately 386,064 shares traded hands during mid-day trading, an increase of 46% from the average daily volume of 263,817 shares. The stock had previously closed at $1.12.

Analyst Upgrades and Downgrades

GRWG has been the subject of several analyst reports. Zacks Research upgraded GrowGeneration to a "hold" rating in a report on Thursday, March 26th. Weiss Ratings restated a "sell (d-)" rating on shares of GrowGeneration in a report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $2.50.

GrowGeneration Stock Performance

The stock has a market cap of $70.91 million, a PE ratio of -2.95 and a beta of 2.32. The company's 50-day moving average price is $1.10 and its 200 day moving average price is $1.41.

GrowGeneration (NASDAQ:GRWG - Get Free Report) last released its quarterly earnings results on Thursday, March 19th. The company reported ($0.12) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.05). The firm had revenue of $37.82 million for the quarter, compared to analysts' expectations of $40.02 million. GrowGeneration had a negative net margin of 14.87% and a negative return on equity of 22.90%. As a group, equities research analysts predict that GrowGeneration Corp. will post -0.23 earnings per share for the current fiscal year.

Hedge Funds Weigh In On GrowGeneration

Hedge funds have recently modified their holdings of the business. Squarepoint Ops LLC grew its holdings in shares of GrowGeneration by 18.0% during the 4th quarter. Squarepoint Ops LLC now owns 189,484 shares of the company's stock worth $284,000 after purchasing an additional 28,872 shares during the period. Two Sigma Investments LP purchased a new position in shares of GrowGeneration during the 3rd quarter worth $279,000. Quadrature Capital Ltd grew its holdings in shares of GrowGeneration by 354.4% during the 4th quarter. Quadrature Capital Ltd now owns 71,034 shares of the company's stock worth $107,000 after purchasing an additional 55,401 shares during the period. Bridgeway Capital Management LLC grew its holdings in shares of GrowGeneration by 274.6% during the 4th quarter. Bridgeway Capital Management LLC now owns 69,298 shares of the company's stock worth $104,000 after purchasing an additional 50,801 shares during the period. Finally, Bank of America Corp DE grew its holdings in shares of GrowGeneration by 36.7% during the 4th quarter. Bank of America Corp DE now owns 60,104 shares of the company's stock worth $102,000 after purchasing an additional 16,132 shares during the period. 36.02% of the stock is currently owned by hedge funds and other institutional investors.

About GrowGeneration

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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