Adversity is less terrifying than hope: HEXO Corp. (HEXO)

HEXO Corp. (NASDAQ: HEXO) stock jumped 0.67% on Friday to $1.50 against a previous-day closing price of $1.49. With 0.99 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.79 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $1.5000 whereas the lowest price it dropped to was $1.4000. The 52-week range on HEXO shows that it touched its highest point at $10.50 and its lowest point at $0.90 during that stretch. Beta for the stock currently stands at 2.08.

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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 HEXO was up-trending over the past week, with a rise of 16.28%, but this was up by 15.38% over a month. Three-month performance dropped to -36.97% while six-month performance fell -50.85%. The stock lost -81.13% in the past year, while it has gained 48.51% so far this year. A look at the trailing 12-month EPS for HEXO yields -31.81 with Next year EPS estimates of -0.55. For the next quarter, that number is -0.10. This implies an EPS growth rate of -205.10% for this year and 58.30% for next year.


Float and Shares Shorts:

At present, 42.93 million HEXO shares are outstanding with a float of 42.03 million shares on hand for trading. On Oct 13, 2022, short shares totaled 24.72 million, which was 4.11% higher than short shares on Sep 14, 2022. In addition to Mr. Charlie Bowman as the firm’s Pres & CEO, Mr. Julius Ivancsits serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 10.97% of HEXO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold — of HEXO, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 4.10% stake in HEXO, the ETFMG Alternative Harvest ETF is the largest stakeholder. A total of 1,758,921 shares are owned by the mutual fund manager. The Horizons Marijuana Life Sciences, which owns about 0.37% of HEXO stock, is the second-largest Mutual Fund holder. It holds 159,793 shares valued at 0.16 million. TD Canadian Index Fund holds 0.03% of the stake in HEXO, owning 12,152 shares worth 12274.0.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for HEXO since 7 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 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 HEXO analysts setting a high price target of $2.56 and a low target of $0.07, the average target price over the next 12 months is $1.84. Based on these targets, HEXO could surge 70.67% to reach the target high and fall by -95.33% to reach the target low. Reaching the average price target will result in a growth of 22.67% 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. HEXO will report FY 2023 earnings on 10/31/2023. Analysts have provided yearly estimates in a range of $0.83 being high and -$1.53 being low. For HEXO, this leads to a yearly average estimate of -$0.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. HEXO Corp. surprised analysts by -$0.68 when it reported -$0.92 EPS against a consensus estimate of -$0.24. The surprise factor in the prior quarter was -$1.39. Based on analyst estimates, the high estimate for the next quarter is $0.10 and the low estimate is -$0.31. The average estimate for the next quarter is thus -$0.15.

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