High Tide Inc. (NASDAQ:HITI) Sees Significant Drop in Short Interest

Key Points

• High Tide’s short interest fell 44.4% to 737,996 shares as of September 30, representing about 0.9% of outstanding shares and 0.8 days of average trading volume.
• The stock traded near $2.56, within its $2.02–$3.60 one-year range. High Tide exceeded quarterly earnings and revenue expectations, reporting $0.09 EPS versus a $0.01 consensus and $141.74 million in revenue.
• Analyst sentiment is mixed but leans positive, with three Buy ratings and one Sell rating; the consensus rating is “Moderate Buy” with a $5.62 price target.

High Tide Inc. (NASDAQ:HITI - Get Free Report) was the target of a significant decline in short interest in the month of September. As of September 30th, there was short interest totaling 737,996 shares, a decline of 44.4% from the September 15th total of 1,326,387 shares. Approximately 0.9% of the shares of the company are sold short. Based on an average daily volume of 890,146 shares, the short-interest ratio is presently 0.8 days.

High Tide Price Performance

NASDAQ:HITI traded down $0.02 during mid-day trading on Thursday, hitting $2.56. 463,217 shares of the company's stock traded hands, compared to its average volume of 548,773. The company has a debt-to-equity ratio of 0.82, a quick ratio of 0.81 and a current ratio of 1.50. The company has a market cap of $228.20 million, a PE ratio of -11.13 and a beta of 0.56. The firm's 50 day simple moving average is $2.56 and its 200 day simple moving average is $2.40. High Tide has a 1 year low of $2.02 and a 1 year high of $3.60.

High Tide (NASDAQ:HITI - Get Free Report) last announced its quarterly earnings results on Monday, September 14th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.08. The company had revenue of $141.74 million for the quarter, compared to the consensus estimate of $138.97 million. High Tide had a negative net margin of 4.73% and a positive return on equity of 5.13%. Sell-side analysts expect that High Tide will post 0.09 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Renaissance Technologies LLC increased its position in High Tide by 13.0% during the first quarter. Renaissance Technologies LLC now owns 1,067,632 shares of the company's stock worth $2,445,000 after buying an additional 122,569 shares in the last quarter. State of Wyoming acquired a new position in shares of High Tide in the first quarter worth $387,000. AXQ Capital LP purchased a new stake in shares of High Tide in the second quarter valued at $86,000. Finally, Friday Financial purchased a new stake in shares of High Tide in the second quarter valued at $29,000. 4.52% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on HITI. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of High Tide in a report on Friday, July 17th. D. Boral Capital initiated coverage on shares of High Tide in a research report on Wednesday, July 22nd. They set a "buy" rating and a $4.00 target price on the stock. Finally, Wall Street Zen raised shares of High Tide from a "hold" rating to a "buy" rating in a report on Saturday, October 10th. Three analysts have rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $5.62.

About High Tide

High Tide Inc is a Canadian cannabis retail and consumer-product company. The company operates adult-use cannabis stores under the Canna Cabana banner and sells cannabis products, accessories and related merchandise through its retail and e-commerce platforms.

High Tide's retail operations are supported by its Cabana Club loyalty program and Fastendr technology, which is designed to facilitate online ordering and in-store pickup. The company also develops and distributes proprietary cannabis and accessory brands, serving both recreational consumers and medical cannabis customers where permitted by local regulations.

Founded in 2009 and headquartered in Calgary, Alberta, High Tide primarily serves the Canadian cannabis market through its store network and digital channels.

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