Aurora Cannabis (TSE:ACB) Shares Up 15.6% - Still a Buy?

Key Points

• Aurora Cannabis shares jumped 15.6% to C$6.45, with trading volume more than double its average session level.
• Analyst sentiment is generally positive but mixed: Aurora has a “Moderate Buy” consensus rating from two Buy ratings and one Hold, with a consensus price target of C$6.20.
• The company remains financially challenged, reporting a quarterly loss of C$0.07 per share, negative net margin and return on equity, while analysts expect a full-year loss of C$0.22 per share.

Shares of Aurora Cannabis Inc. (TSE:ACB - Get Free Report) rose 15.6% on Monday. The stock traded as high as C$6.51 and last traded at C$6.45. Approximately 914,036 shares traded hands during trading, an increase of 122% from the average session volume of 410,815 shares. The stock had previously closed at C$5.58.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. BMO Capital Markets upgraded Aurora Cannabis to a "hold" rating in a research note on Wednesday, August 5th. Canaccord Genuity Group lowered their price target on shares of Aurora Cannabis from C$6.50 to C$5.00 and set a "buy" rating on the stock in a research report on Tuesday, June 30th. ATB Cormark Capital Markets cut shares of Aurora Cannabis from an "outperform" rating to a "tender" rating and cut their price objective for the stock from C$6.50 to C$5.60 in a research report on Wednesday, August 19th. Finally, TD cut their target price on Aurora Cannabis from C$10.00 to C$8.00 and set a "buy" rating for the company in a research note on Friday, June 12th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Aurora Cannabis has an average rating of "Moderate Buy" and a consensus price target of C$6.20.

Aurora Cannabis Stock Performance

The company has a market capitalization of C$399.62 million, a price-to-earnings ratio of -3.32 and a beta of 0.42. The company has a debt-to-equity ratio of 4.30, a current ratio of 5.36 and a quick ratio of 2.48. The company's 50-day moving average price is C$5.13 and its two-hundred day moving average price is C$4.70.

Aurora Cannabis (TSE:ACB - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported C($0.07) earnings per share for the quarter. The business had revenue of C$67.55 million during the quarter. Aurora Cannabis had a negative return on equity of 5.21% and a negative net margin of 9.53%. On average, equities research analysts anticipate that Aurora Cannabis Inc. will post -0.22 EPS for the current fiscal year.

About Aurora Cannabis

Aurora Cannabis, headquartered in Edmonton, Canada, cultivates and sells medicinal and recreational cannabis through a portfolio of brands that includes Aurora, CanniMed, Daily Special, MedReleaf, and San Rafael '71. Although the company primarily operates in Canada, it has expanded internationally through medical cannabis exporting agreements or cultivation facilities in more than 20 countries.

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