It makes sense and dollars to buy 22nd Century Group Inc. (XXII) stock

22nd Century Group Inc. (NASDAQ: XXII) stock jumped 12.04% on Friday to $1.21 against a previous-day closing price of $1.08. With 1.71 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.35 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $1.2100 whereas the lowest price it dropped to was $1.0700. The 52-week range on XXII shows that it touched its highest point at $2.71 and its lowest point at $0.82 during that stretch. It currently has a 1-year price target of $4.75. Beta for the stock currently stands at 1.85.

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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 up-trending over the past week, with a rise of 21.00%, but this was up by 32.97% over a month. Three-month performance dropped to -3.20% while six-month performance fell -41.83%. The stock lost -45.74% in the past year, while it has gained 31.45% so far this year. A look at the trailing 12-month EPS for XXII yields -0.27 with Next year EPS estimates of -0.22. For the next quarter, that number is -0.06. This implies an EPS growth rate of -47.00% for this year and 8.30% for next year.

Float and Shares Shorts:

At present, 210.13 million XXII shares are outstanding with a float of 209.69 million shares on hand for trading. On Oct 13, 2022, short shares totaled 15.13 million, which was 7.05% higher than short shares on Sep 14, 2022. In addition to Mr. James A. Mish as the firm’s Corp. Pres, CEO, Member of Scientific Advisory Board & Director, Mr. John E. Franzino serves as its Chief Admin. Officer.

Institutional Ownership:

Through their ownership of 20.51% of XXII’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.54% of XXII, in contrast to 12.17% held by mutual funds. Shares owned by individuals account for 11.91%. As the largest shareholder in XXII with 4.72% of the stake, The Vanguard Group, Inc. holds 10,154,422 shares worth 10,154,422. A second-largest stockholder of XXII, BlackRock Fund Advisors, holds 9,484,490 shares, controlling over 4.41% of the firm’s shares. Geode Capital Management LLC is the third largest shareholder in XXII, holding 3,362,108 shares or 1.56% stake. With a 2.83% stake in XXII, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 6,085,365 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.74% of XXII stock, is the second-largest Mutual Fund holder. It holds 3,754,607 shares valued at 3.45 million. Vanguard Extended Market Index Fu holds 1.47% of the stake in XXII, owning 3,172,272 shares worth 2.92 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 $4.00, the average target price over the next 12 months is $5.50. Based on these targets, XXII could surge 602.48% to reach the target high and rise by 230.58% to reach the target low. Reaching the average price target will result in a growth of 354.55% 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 02/27/2024. Analysts have provided yearly estimates in a range of -$0.23 being high and -$0.26 being low. For XXII, this leads to a yearly average estimate of -$0.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. 22nd Century Group Inc. surprised analysts by -$0.00 when it reported -$0.06 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was -$0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.05 and the low estimate is -$0.07. The average estimate for the next quarter is thus -$0.06.

Summary of Insider Activity:

Insiders traded XXII stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 2,276,538 while 391,113 shares were sold.

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