SNDL (NASDAQ:SNDL) Shares Gap Up - Here's Why

Key Points

• SNDL Inc. shares opened at $2.56 after previously closing at $2.47, indicating a positive market reaction ahead of trading.
• Alliance Global Partners initiated coverage on SNDL with a "buy" rating and a price target of $5.00, contributing to a consensus rating of "Buy" among analysts.
• In its latest quarterly earnings, SNDL reported $0.01 earnings per share, surpassing estimates, although revenue fell short of expectations at $179.78 million.

SNDL Inc. (NASDAQ:SNDL - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $2.47, but opened at $2.56. SNDL shares last traded at $2.58, with a volume of 554,911 shares changing hands.

Wall Street Analyst Weigh In

Separately, Alliance Global Partners started coverage on shares of SNDL in a report on Wednesday. They issued a "buy" rating and a $5.00 target price on the stock. One analyst has rated the stock with a Buy rating, According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $4.50.

SNDL Trading Up 1.6%

The business has a 50 day simple moving average of $1.83 and a 200 day simple moving average of $1.55. The company has a debt-to-equity ratio of 0.11, a current ratio of 5.03 and a quick ratio of 3.36. The company has a market cap of $651.69 million, a price-to-earnings ratio of -9.18 and a beta of 3.92.

SNDL (NASDAQ:SNDL - Get Free Report) last released its quarterly earnings results on Thursday, July 31st. The company reported $0.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.05. SNDL had a negative return on equity of 8.58% and a negative net margin of 10.38%.The business had revenue of $179.78 million during the quarter, compared to analysts' expectations of $231.50 million. As a group, equities analysts forecast that SNDL Inc. will post -0.09 EPS for the current year.

Institutional Trading of SNDL

Hedge funds have recently modified their holdings of the stock. Tower Research Capital LLC TRC bought a new position in SNDL in the 4th quarter worth approximately $77,000. BNP Paribas Financial Markets acquired a new stake in shares of SNDL in the 4th quarter valued at $7,357,000. Bank of America Corp DE raised its position in shares of SNDL by 36.0% during the fourth quarter. Bank of America Corp DE now owns 264,106 shares of the company's stock worth $473,000 after acquiring an additional 69,919 shares during the last quarter. Graham Capital Management L.P. lifted its stake in shares of SNDL by 11.6% during the fourth quarter. Graham Capital Management L.P. now owns 138,827 shares of the company's stock valued at $248,000 after acquiring an additional 14,461 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in SNDL by 41.3% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,095,205 shares of the company's stock valued at $3,750,000 after acquiring an additional 612,495 shares during the last quarter.

SNDL Company Profile

SNDL Inc engages in the production, distribution, and sale of cannabis products in Canada. The company operates through Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments segments. It engages in the cultivation, distribution, and sale of cannabis for the adult-use and medical markets; sells wines, beers, and spirits through wholly owned liquor stores; and private sale of recreational cannabis through wholly owned and franchised retail cannabis stores.