SNDL (NASDAQ:SNDL) Shares Gap Up - Still a Buy?

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 prior to trading 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 Analysts Forecast Growth

Separately, Alliance Global Partners assumed coverage on shares of SNDL in a report on Wednesday, September 3rd. They issued a "buy" rating and a $5.00 price objective for the company. One equities research analyst has rated the stock with a Buy rating, According to MarketBeat, SNDL has a consensus rating of "Buy" and a consensus target price of $4.50.

SNDL Trading Down 3.6%

The company has a market cap of $628.04 million, a price-to-earnings ratio of -8.85 and a beta of 3.92. The company has a current ratio of 5.03, a quick ratio of 3.36 and a debt-to-equity ratio of 0.11. The firm's 50-day moving average price is $1.83 and its 200 day moving average price is $1.55.

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

Institutional Trading of SNDL

Several large investors have recently modified their holdings of the stock. Tidal Investments LLC grew its position in shares of SNDL by 2.5% during the 2nd quarter. Tidal Investments LLC now owns 7,272,668 shares of the company's stock worth $8,800,000 after buying an additional 178,622 shares during the period. BNP Paribas Financial Markets grew its position in shares of SNDL by 7.5% during the 2nd quarter. BNP Paribas Financial Markets now owns 4,853,517 shares of the company's stock worth $5,873,000 after buying an additional 338,278 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in SNDL by 41.3% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,095,205 shares of the company's stock valued at $3,750,000 after purchasing an additional 612,495 shares during the period. State of Wyoming grew its position in SNDL by 14.5% in the 1st quarter. State of Wyoming now owns 650,510 shares of the company's stock valued at $917,000 after purchasing an additional 82,326 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in SNDL by 17.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 424,317 shares of the company's stock valued at $598,000 after purchasing an additional 62,004 shares during the period.

About SNDL

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.