Cannabis stocks took another hit Monday as the plant’s summer slump continues into the autumn season.
The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada, moved 2.3% lower to 128.9 points. Elsewhere, the Horizons Marijuana Life Sciences Index ETF slid 1.3% to C$10.36, while the OTCQX Cannabis Index fell 0.4% to 495 points.
Seaport Group, which had negative things to say about the Candian cannabis space this week but positive things about the US, said its price target for the dual-listed company was under review while it watches to see how its latest financing efforts go.
Additionally, CannaRoyaltyCorp (CSE:OH) (OTCMKTS:ORHOF), which does business under the name Origin House, had its share price rise more than 10% to C$5.76.
Singing the Monday blues are Hexo Corp (TSE:HEXO) (NYSE:HEXO) and Canopy Growth Corp (TSE:WEED) (NYSE:CGC), which were both downgraded by analysts at Seaport Global, according to a MarketWatch report.
The report knocked each company’s rating down to Neutral from Buy as part of a larger recommendation that investors switch over from the Canadian cannabis sector to the American one.
"We see a headwind for the Canadian cannabis market ahead, based on sizable industry supply that will aim to funnel into a limited retail store set," analysts Brett M. Hundley and Luke Perda said in a note.
However, the analysts "see a completely different set of circumstances in place, and we would broadly recommend that investors rotate away from Canada and towards the US."
Hexo shares fell nearly 11% to C$3.35 in Toronto and 5.5% to US$2.39 on the NYSE.
Canopy shares dropped 5.5% to C$25.67 on Bay Street and 3.3% to US$18.79 on Wall Street.
—Updated share prices—
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