SNDL (NASDAQ:SNDL) Rating Lowered to "Strong Sell" at Zacks Research

Key Points

• Zacks downgraded SNDL from a "hold" to a "strong sell," while Weiss Ratings reaffirmed a "sell (D-)" and the consensus analyst rating is Reduce with an average price target of $5.00.
• SNDL reported an EPS beat ($0.03 vs. $0.01) but missed revenue estimates badly (reported $183.87M vs. $257.97M expected), prompting negative investor sentiment and management to announce cost cuts and margin-focused initiatives.
• Shares trade around $1.36 with a market cap near $350M and display weak profitability metrics (negative net margin and negative ROE), and analysts forecast a -$0.04 EPS for the current fiscal year.

SNDL (NASDAQ:SNDL - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SNDL in a report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average price target of $5.00.

SNDL Stock Up 3.4%

SNDL stock opened at $1.36 on Wednesday. The company has a quick ratio of 3.47, a current ratio of 4.88 and a debt-to-equity ratio of 0.12. The firm has a market capitalization of $350.06 million, a PE ratio of -45.33 and a beta of 0.81. SNDL has a twelve month low of $1.15 and a twelve month high of $2.89. The stock has a 50-day simple moving average of $1.45 and a two-hundred day simple moving average of $1.67.

SNDL (NASDAQ:SNDL - Get Free Report) last posted its earnings results on Thursday, March 12th. The company reported $0.03 earnings per share for the quarter, beating analysts' consensus estimates of $0.01 by $0.02. SNDL had a negative return on equity of 1.02% and a negative net margin of 1.19%.The business had revenue of $183.87 million during the quarter, compared to analyst estimates of $257.97 million. On average, equities analysts predict that SNDL will post -0.04 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Traynor Capital Management Inc. purchased a new position in shares of SNDL during the third quarter worth about $27,000. Private Advisor Group LLC purchased a new position in shares of SNDL during the first quarter worth about $28,000. Hilton Capital Management LLC purchased a new position in shares of SNDL during the second quarter worth about $30,000. PFG Investments LLC grew its holdings in shares of SNDL by 53.8% during the fourth quarter. PFG Investments LLC now owns 20,000 shares of the company's stock worth $33,000 after purchasing an additional 7,000 shares in the last quarter. Finally, FSM Wealth Advisors LLC purchased a new position in shares of SNDL during the fourth quarter worth about $33,000.

Trending Headlines about SNDL

Here are the key news stories impacting SNDL this week:

• Positive Sentiment: Company reported an EPS beat, reiterated strong liquidity and progress on profit‑enhancement priorities, which supports near-term solvency and operational flexibility. SNDL Reports First Quarter 2026 Financial and Operational Results
• Positive Sentiment: Management announced cost cuts and margin-focused initiatives on the earnings call, giving investors a pathway to improve profitability if revenue stabilizes. SNDL Inc. Earnings Call: Cost Cuts Amid Cannabis Strain
• Neutral Sentiment: Earnings call transcript and investor materials are available for detailed review, allowing analysts and investors to parse which segments and geographies are driving weakness. SNDL Inc. (SNDL) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Q1 revenue fell ~4.4% YoY to roughly USD$143.3M and missed consensus by a wide margin — the primary catalyst for negative sentiment across cannabis peers. Forget SNDL: HITI is a Significantly Better Cannabis Stock
• Negative Sentiment: Market headwinds in both the cannabis and liquor segments drove the revenue shortfall and prompted cautious commentary from management; this weak top-line raises questions about near-term growth. SNDL sends pot stocks lower as market headwinds drive Q1 revenue miss
• Negative Sentiment: Multiple market write‑ups emphasize the revenue miss and slower same‑store sales in liquor and cannabis as the dominant risk, arguing the EPS beat masks deteriorating fundamentals. SNDL Quarterly Revenue Dented By Soft Liquor, Cannabis Market Conditions

About SNDL

SNDL Inc, formerly known as Sundial Growers Inc, is a Canada-based consumer packaged goods company focused on the production, manufacturing and distribution of cannabis products. Headquartered in Calgary, Alberta, SNDL operates multiple cultivation and processing facilities across Canada, including indoor and hybrid greenhouses in British Columbia and Ontario. The company serves both adult-use and medical cannabis markets, supplying provincial distributors as well as operating through its own wholesale and retail networks.

The company's product portfolio spans dried flower, pre-rolls, vape cartridges, cannabis oils, edibles and infused beverages under a variety of in-house brands.

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