A better buy-in window may exist right now for HEXO Corp. (HEXO)

HEXO Corp. (NASDAQ: HEXO) stock jumped 5.16% on Tuesday to $1.63 against a previous-day closing price of $1.55. With 3.41 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.86 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $1.7800 whereas the lowest price it dropped to was $1.5200. 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 18.98%, but this was up by 40.52% over a month. Three-month performance dropped to -33.13% while six-month performance fell -40.66%. The stock lost -77.92% in the past year, while it has gained 61.39% 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 Dec 29, 2022, short shares totaled 1.85 million, which was 4.32% higher than short shares on Nov 29, 2022. In addition to Mr. Mark Attanasio as the firm’s Exec. Chairman, Mr. Charlie Bowman serves as its Pres & CEO.

Institutional Ownership:

Through their ownership of 10.06% 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.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Oct 30, 2022, HEXO reported revenue of $45.57M and operating income of -$48.76M. The EBITDA in the recently reported quarter was -$56.61M and diluted EPS was -$4.76.

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 57.06% to reach the target high and fall by -95.71% to reach the target low. Reaching the average price target will result in a growth of 12.88% 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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