22nd Century Group Inc. (XXII) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

22nd Century Group Inc. (NASDAQ: XXII) stock fell -0.59% on Friday to $1.68 against a previous-day closing price of $1.69. With 1.11 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.3 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $1.6900 whereas the lowest price it dropped to was $1.6425. The 52-week range on XXII shows that it touched its highest point at $4.17 and its lowest point at $1.42 during that stretch. It currently has a 1-year price target of $5.90. Beta for the stock currently stands at 1.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of XXII was down-trending over the past week, with a drop of -19.23%, but this was down by -27.27% over a month. Three-month performance dropped to -13.40% while six-month performance fell -22.58%. The stock lost -47.99% in the past year, while it has lost -45.63% so far this year. A look at the trailing 12-month EPS for XXII yields -0.23 with Next year EPS estimates of -0.20. For the next quarter, that number is -0.06. This implies an EPS growth rate of -47.00% for this year and 4.50% for next year.

Float and Shares Shorts:

At present, 163.16 million XXII shares are outstanding with a float of 158.71 million shares on hand for trading. On Apr 28, 2022, short shares totaled 14.42 million, which was 8.76% higher than short shares on Mar 30, 2022. In addition to Mr. James A. Mish as the firm’s CEO, Member of Scientific Advisory Board & Director, Mr. Michael J. Zercher serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 28.20% of XXII’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 16.98% of XXII, in contrast to 15.78% held by mutual funds. Shares owned by individuals account for 10.36%. As the largest shareholder in XXII with 5.63% of the stake, BlackRock Fund Advisors holds 9,266,032 shares worth 9,266,032. A second-largest stockholder of XXII, ETF Managers Group LLC, holds 8,816,841 shares, controlling over 5.36% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in XXII, holding 7,750,489 shares or 4.71% stake. With a 3.88% stake in XXII, the ETFMG Alternative Harvest ETF is the largest stakeholder. A total of 6,377,436 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.36% of XXII stock, is the second-largest Mutual Fund holder. It holds 5,522,465 shares valued at 11.76 million. iShares Russell 2000 ETF holds 2.16% of the stake in XXII, owning 3,559,553 shares worth 7.58 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for XXII since 5 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With XXII analysts setting a high price target of $8.50 and a low target of $5.00, the average target price over the next 12 months is $5.90. Based on these targets, XXII could surge 405.95% to reach the target high and rise by 197.62% to reach the target low. Reaching the average price target will result in a growth of 251.19% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. XXII will report FY 2022 earnings on 03/08/2023. Analysts have provided yearly estimates in a range of -$0.15 being high and -$0.25 being low. For XXII, this leads to a yearly average estimate of -$0.20. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. 22nd Century Group Inc. surprised analysts by $0.01 when it reported -$0.05 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was -$0.04. Based on analyst estimates, the high estimate for the next quarter is -$0.04 and the low estimate is -$0.06. The average estimate for the next quarter is thus -$0.05.

Summary of Insider Activity:

Insiders traded XXII stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 100,000 shares were bought while 20,324 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 3 over the past year. The total number of shares bought during that period was 2,308,926 while 73,016 shares were sold.

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