Cronos Group (NASDAQ:CRON) Shares Gap Up Following Better-Than-Expected Earnings

Cronos Group Inc. (NASDAQ:CRON) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $2.72, but opened at $3.02. Cronos Group shares last traded at $3.0260, with a volume of 1,655,786 shares traded.

The company reported $0.09 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.08. Cronos Group had a negative net margin of 1.14% and a negative return on equity of 1.26%. The firm had revenue of $53.01 million during the quarter, compared to analyst estimates of $44.20 million.

Wall Street Analyst Weigh In

A number of equities analysts have commented on CRON shares. Weiss Ratings reissued a “sell (d+)” rating on shares of Cronos Group in a research note on Friday, May 29th. TD Securities restated a “buy” rating on shares of Cronos Group in a research report on Tuesday, May 12th. Finally, Wall Street Zen raised shares of Cronos Group from a “hold” rating to a “buy” rating in a report on Saturday, May 16th. Two equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Cronos Group has a consensus rating of “Hold” and a consensus price target of $2.30.

Institutional Investors Weigh In On Cronos Group

A number of institutional investors and hedge funds have recently modified their holdings of CRON. Jones Financial Companies Lllp boosted its holdings in Cronos Group by 291.6% during the 1st quarter. Jones Financial Companies Lllp now owns 65,099 shares of the company’s stock valued at $118,000 after acquiring an additional 48,476 shares during the period. Goldman Sachs Group Inc. increased its stake in Cronos Group by 84.6% in the first quarter. Goldman Sachs Group Inc. now owns 1,076,405 shares of the company’s stock worth $1,948,000 after purchasing an additional 493,161 shares during the period. Envestnet Asset Management Inc. purchased a new stake in Cronos Group in the second quarter worth $36,000. Legal & General Group Plc lifted its position in shares of Cronos Group by 16.1% during the second quarter. Legal & General Group Plc now owns 195,368 shares of the company’s stock worth $374,000 after purchasing an additional 27,111 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Cronos Group by 192.4% during the second quarter. Arrowstreet Capital Limited Partnership now owns 89,683 shares of the company’s stock worth $171,000 after purchasing an additional 59,013 shares during the last quarter. 8.71% of the stock is owned by institutional investors.

Cronos Group Stock Up 10.8%

The stock has a market capitalization of $1.12 billion, a PE ratio of 303.00 and a beta of 0.90. The stock’s 50 day moving average price is $2.77 and its 200-day moving average price is $2.67.

About Cronos Group

Cronos Group Inc is a Canadian cannabinoid company dedicated to the cultivation, production and distribution of cannabis and cannabidiol (CBD) products for both medical and adult-use markets. Headquartered in Toronto, Ontario, the company manages operations that span the full cannabis value chain, including breeding, greenhouse cultivation, extraction, product formulation and packaging. Cronos Group’s business model emphasizes innovation in product development and scalability in manufacturing to meet evolving regulatory and consumer demands.

The company’s branded portfolio includes Peace Naturals, which focuses on pharmaceutical-grade medical cannabis; Spinach, a line of adult-use cannabis oils and tinctures; and Cove, a range of wellness-oriented CBD offerings.