Flora Growth Corp. (FLGC) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Flora Growth Corp. (NASDAQ: FLGC) stock jumped 5.96% on Monday to $0.28 against a previous-day closing price of $0.26. With 2.49 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 $0.2800 whereas the lowest price it dropped to was $0.2525. The 52-week range on FLGC shows that it touched its highest point at $2.38 and its lowest point at $0.19 during that stretch. It currently has a 1-year price target of $2.07.

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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 FLGC was up-trending over the past week, with a rise of 28.98%, but this was up by 13.00% over a month. Three-month performance dropped to -47.03% while six-month performance fell -58.26%. The stock lost -82.67% in the past year, while it has gained 21.05% so far this year. A look at the trailing 12-month EPS for FLGC yields -0.48 with Next year EPS estimates of -0.06. For the next quarter, that number is -0.07. This implies an EPS growth rate of -43.40% for this year and 88.70% for next year.

Float and Shares Shorts:

At present, 76.61 million FLGC shares are outstanding with a float of 68.03 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.57 million, which was 3.34% higher than short shares on Sep 14, 2022. In addition to Mr. Luis Merchan as the firm’s Pres, CEO & Chairman, Dr. Bernard Raymond Wilson F.C.A., FCA, FCPA, ICD.D, LLD(H) serves as its Advisor.

Institutional Ownership:

Through their ownership of 5.91% of FLGC’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 3.14% of FLGC, in contrast to 14.84% held by mutual funds. Shares owned by individuals account for 1.75%. As the largest shareholder in FLGC with 2.56% of the stake, Global X Management Co. LLC holds 2,296,758 shares worth 2,296,758. A second-largest stockholder of FLGC, Highbridge Capital Management LLC, holds 825,000 shares, controlling over 0.92% of the firm’s shares. ETF Managers Group LLC is the third largest shareholder in FLGC, holding 513,466 shares or 0.57% stake. With a 1.43% stake in FLGC, the Global X Cannabis ETF is the largest stakeholder. A total of 1,288,721 shares are owned by the mutual fund manager. The HANetf ICAV – Medical Cannabis &, which owns about 0.20% of FLGC stock, is the second-largest Mutual Fund holder. It holds 182,740 shares valued at 41665.0. Horizons US Marijuana Index ETF holds 0.08% of the stake in FLGC, owning 72,136 shares worth 16447.0.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FLGC since 3 analysts follow the stock currently. There are 3 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 FLGC analysts setting a high price target of $4.50 and a low target of $1.00, the average target price over the next 12 months is $2.44. Based on these targets, FLGC could surge 1507.14% to reach the target high and rise by 257.14% to reach the target low. Reaching the average price target will result in a growth of 771.43% 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. FLGC will report FY 2022 earnings on 05/07/2024. Analysts have provided yearly estimates in a range of -$0.32 being high and -$0.64 being low. For FLGC, this leads to a yearly average estimate of -$0.53. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Flora Growth Corp. surprised analysts by -$0.04 when it reported -$0.10 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was -$0.35. Based on analyst estimates, the high estimate for the next quarter is -$0.04 and the low estimate is -$0.11. The average estimate for the next quarter is thus -$0.07.

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