Cannabis stocks flatlined Wednesday, with shares broadly flat across US and Canadian markets.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, was up 0.2% to 246.4 points on Wednesday. The Horizons Marijuana Life Sciences Index ETF inched up 0.1% to C$18.80.
Yesterday, OTC Markets Group Inc (OTCQX:OTCM) announced it has launchied the OTCQX Cannabis Index that will track the performance of 30 companies trading on the OTCQX Best Market. On Wednesday, the OTCQX Cannabis Index nudged up 4% to close at 790.6 points.
A number of cannabis stocks bucked the trend and outperformed on Wednesday.
Leading the pack was Cronos Group Inc (NASDAQ:CRON) after earning a rare double upgrade from analysts at Bank of America Merrill Lynch. According to a published report by TheStreet, analyst Christopher Carey upgraded the cannabis company to Buy from Underperform. He boosted his price target to $20 from $13, a 39% premium on its Tuesday close.
Shares jumped 11.6% to C$21.58 on the TSX and 10.9% to US$15.99 on the Nasdaq.
Other gainers on Wednesday included True Leaf Brands Inc (CSE:MJ) (OTCQX:TRLFF) (FSE:TLA), which announced Wednesday it is expanding further into the European market. The Vernon, BC-based company said it has secured distribution agreements with OSCAR Pet Foods in the UK and with Pocurull in Spain and Portugal.
Shares were up 2.3% at C$0.44 in Toronto.
A number of stocks were lagging on Wednesday.
Last month the firm released its 2018 financial statements, showing a net loss of US$552.1 million. The company reported revenues for the year of US$5.65 million. The firm offers same-day delivery for retailers, wholesalers and consumers in four states.
MedMen Enterprises Inc (CSE:MMEN) (OTCQX:MMNFF) shares continued to slide on Wednesday, on the back of the firm's third-quarter earnings results, which were posted late last week, which didn’t meet analyst estimates.
LA-based MedMen reported revenue of US$36.6 million, versus analyst expectations of US$49.2 million. It reported a net loss of US$63.1 million, reflecting a share loss of US$0.20. In the year-ago quarter, the loss stood at US$18.4 million.
Shares slipped 1.1% at US$1.92 in New York.
Contact Katie Lewis at [email protected]