GrowGeneration (NASDAQ:GRWG) Shares Cross Above 200-Day Moving Average - Here's Why

Key Points

• GrowGeneration shares moved above their 200-day moving average, reaching $1.49 before closing at $1.44, compared with the $1.42 average.
• Analyst sentiment remains mixed: Alliance Global Partners upgraded the stock to “buy” with a $2.50 price target, while the consensus rating is “hold” with an average target of $2.50.
• The company slightly beat quarterly earnings and revenue estimates, reporting an adjusted loss of $0.03 per share and $43.22 million in revenue, but remains unprofitable with a negative net margin and return on equity.

GrowGeneration Corp. (NASDAQ:GRWG - Get Free Report) shares crossed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $1.42 and traded as high as $1.49. GrowGeneration shares last traded at $1.44, with a volume of 142,496 shares traded.

Analyst Upgrades and Downgrades

Several analysts have commented on GRWG shares. Alliance Global Partners raised GrowGeneration from a "neutral" rating to a "buy" rating and set a $2.50 price objective for the company in a research note on Wednesday, August 12th. Weiss Ratings raised GrowGeneration from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 21st. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $2.50.

GrowGeneration Price Performance

The stock has a 50-day simple moving average of $1.58 and a 200-day simple moving average of $1.42. The stock has a market cap of $84.84 million, a PE ratio of -5.33 and a beta of 2.54.

GrowGeneration (NASDAQ:GRWG - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.01. GrowGeneration had a negative net margin of 10.07% and a negative return on equity of 17.44%. The company had revenue of $43.22 million during the quarter, compared to analyst estimates of $42.75 million. As a group, equities research analysts anticipate that GrowGeneration Corp. will post -0.15 EPS for the current year.

Institutional Investors Weigh In On GrowGeneration

A number of large investors have recently added to or reduced their stakes in GRWG. Squarepoint Ops LLC increased its position in shares of GrowGeneration by 350.3% during the second quarter. Squarepoint Ops LLC now owns 46,638 shares of the company's stock worth $69,000 after acquiring an additional 36,282 shares during the last quarter. Empowered Funds LLC acquired a new stake in GrowGeneration during the 2nd quarter valued at approximately $27,000. AWM Investment Company Inc. acquired a new stake in GrowGeneration during the 2nd quarter valued at approximately $4,586,000. Primecap Management Co. CA purchased a new stake in GrowGeneration during the 2nd quarter worth approximately $558,000. Finally, Kinloch Capital LLC purchased a new stake in GrowGeneration during the 2nd quarter worth approximately $50,000. 36.02% of the stock is owned by institutional investors and hedge funds.

About GrowGeneration

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.

Founded in 2011, GrowGeneration has expanded its operations across the United States and serves customers through a network of retail locations and digital channels.

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