GrowGeneration (NASDAQ:GRWG) Shares Break Below 50 Day Moving Average - Time to Sell?

Key Points

• Shares slipped below the 50-day moving average: GrowGeneration traded as low as $1.49 and last changed hands at $1.51, below its $1.52 average.
• Analyst views are mixed: One analyst rates the stock Buy, one Hold, and one Sell; the consensus rating is Hold with a $2.50 average price target.
• The latest quarter beat estimates, reporting a loss of $0.03 per share versus expectations of $0.04 and revenue of $43.22 million versus $42.75 million. The company remained unprofitable, with a negative net margin of 10.07%.

GrowGeneration Corp. (NASDAQ:GRWG - Get Free Report)'s share price passed below its fifty day moving average during trading on Tuesday. The stock has a fifty day moving average of $1.52 and traded as low as $1.49. GrowGeneration shares last traded at $1.51, with a volume of 209,643 shares trading hands.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on GRWG. Weiss Ratings upgraded shares of GrowGeneration from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 21st. Alliance Global Partners upgraded shares of GrowGeneration from a "neutral" rating to a "buy" rating and set a $2.50 target price for the company in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, GrowGeneration has an average rating of "Hold" and an average target price of $2.50.

GrowGeneration Trading Down 3.8%

The company has a market cap of $88.97 million, a P/E ratio of -5.59 and a beta of 2.66. The business has a 50 day moving average price of $1.52 and a 200-day moving average price of $1.41.

GrowGeneration (NASDAQ:GRWG - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported ($0.03) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.01. The business had revenue of $43.22 million during the quarter, compared to analysts' expectations of $42.75 million. GrowGeneration had a negative net margin of 10.07% and a negative return on equity of 17.44%. On average, sell-side analysts expect that GrowGeneration Corp. will post -0.15 earnings per share for the current year.

Institutional Trading of GrowGeneration

A number of large investors have recently added to or reduced their stakes in the company. AWM Investment Company Inc. bought a new position in shares of GrowGeneration in the 2nd quarter valued at about $4,586,000. Monaco Asset Management SAM bought a new stake in shares of GrowGeneration in the 2nd quarter valued at about $1,775,000. BlackRock Inc. bought a new stake in shares of GrowGeneration in the 2nd quarter valued at about $1,717,000. Renaissance Technologies LLC lifted its stake in GrowGeneration by 34.5% in the 1st quarter. Renaissance Technologies LLC now owns 1,370,610 shares of the company's stock valued at $1,508,000 after purchasing an additional 351,277 shares during the last quarter. Finally, Primecap Management Co. CA acquired a new stake in GrowGeneration in the 2nd quarter valued at about $558,000. Institutional investors and hedge funds own 36.02% of the company's stock.

GrowGeneration Company Profile

GrowGeneration Corp. NASDAQ: GRWG is a specialty retailer serving the hydroponic and organic gardening markets. The company sells cultivation supplies and equipment to commercial and home growers through its retail stores and e-commerce platform. Its product offerings include hydroponic systems, growing media, plant nutrients, lighting, irrigation equipment, environmental-control systems, propagation supplies, and other gardening products. GrowGeneration also provides cultivation-related supplies and resources for customers growing a variety of indoor and greenhouse crops.

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