ACB stock: buy or sell?

ACB stock price: $8.49 -2.19% At close on May 20th, 2019

Updated on:
May 20th, 2019

2

Aurora Cannabis slipped a rough -2.19% and closed at $8.49.

Should I buy ACB stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Aurora Cannabis stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ACB will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Aurora Cannabis stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 7 ratings published for ACB stock in the last 30 days.

The general sentiment of these ratings is bullish for ACB stock, with 4 positive ratings.
Is ACB a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-17Bank of American/aBuy
2019-3-5Cowenn/aOutperform
2019-3-13GMP SecuritiesHoldBuy
2019-2-25Jefferies Financial Groupn/aBuy
2019-2-21Seaport Global Securitiesn/aNeutral
2019-2-19BMO Capital Marketsn/aMarket Perform
2019-2-12GMP Securitiesn/aHold

ACB stock analysis

Daily outlook

Shares of Aurora Cannabis slipped a rough -2.19% and closed at $8.49.

Aurora Cannabis shares slipped -2.19% to $8.49 today. Since SMA100d and SMA200d crossed up on Apr 17th, ACB price slid a -4.39%. Since January when ACB stock price broke up the SMA200d line, it gained $1.87 (28.25%).

ACB stock chart (daily)

Weekly outlook

Aurora Cannabis depreciated an awful -2.19% this week. Early May ACB collapsed a frightening -5.27% in just one week.

Since SMA20w and SMA40w crossed up early April, ACB price slid a -7.42%. Since price and SMA40w lines crossed up late January, ACB climbed $2.05 (31.83%).

ACB stock chart (weekly)

ACB stock price history

ACB IPO was on September 14th, 2000 at $20.18 per share1. Since then, ACB stock declined a -57.90%, with a yearly average of -3.20%.

1: Adjusted price after possible price splits or reverse-splits.

ACB stock historical price chart

ACB stock reached 52-week highs on October at $12.53, and all-time highs 2000-11-01 with a price of 22.83.

ACB stock price target is $64.20

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. We found 3 price predictions for Aurora Cannabis stock published in the last month:
ACB stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-4-17Bank of AmericaInitiatesn/a$11.00-
2019-2-19BMO Capital MarketsRaises Targetn/a$172.00-
2019-2-12GMP SecuritiesReiteratesn/a$9.50-
(in average)$0.00$64.200.0%
Moving in a range from $172.00 and $9.50, the price prediction for ACB stock is $64.20. In average, analysts' outlook on ACB price target is stable from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since February, when Aurora Cannabis posted its last earnings report, it skyrocketed an amazing 18.41%. As soon as we get its posted EPS from the earnings report, we will extend this review.
ACB earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2018-Q12018-05-08n/a-0.04n/a
2018-Q22018-09-25n/a0.13n/a
2018-Q32018-11-12n/a0.09n/a
2018-Q42019-02-11n/a-0.04n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an outstanding gain of 205.51% to $55.20 million dollars. When comparing 2018 vs 2017, in the same way, profit margin (that is, the net income divided by revenues) rocketed a 202.11% to 130.33%.

To have an up to date view of the financial situation of Aurora Cannabis, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Aurora Cannabis TTM sales up to December 2018 were $121.38 and income was $-71.64 million USD. When comparing this TTM figures with the last reported annuality, we can esteem Aurora Cannabis business evolution since June 2018: Annual turnover up to December, compared to lastest yearly report, skyrocketed an extraordinary 119.90%. Regarding profit margin, Aurora Cannabis plummed -189.35% to 130.33%

ACB annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2016$1.44 M-$-5.72 M-397.7%-
2017$18 M1,155.29%$-12.97 M-71.8%126.57%
2018$55 M205.51%$72 M130.3%-654.72%
TTM $121 M119.90%$-71.64 M-59.0%-199.58%

Quarterly financial results

Aurora Cannabis posted $54.18 M in sales for 2018-Q4, a 69.56% improvement compared to previous quarter. Reported quarter income marked $-237.75 M with a profit margin of -438.83%. Profit margin collapsed a -768.89% compared to previous quarter when profit margin was 330.05%. When comparing turnover to same quarter last year, Aurora Cannabis sales marked and a . Looking back to recent quarterly results, Aurora Cannabis posted 3 positive quarters in a row.
ACB quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2018-Q1$16 M-$-19.22 M-119.3%-
2018-Q2$19 M18.93%$79.87 M417.1%-515.66%
2018-Q3$32 M66.88%$105.46 M330.1%32.04%
2018-Q4$54 M69.56%$-237.75 M-438.8%-325.44%

Aurora Cannabis ownership

When you are planning to buy a company, it's always worth to review its ownership structure.

Aurora Cannabis shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 3.04% of all shares.

In case of Aurora Cannabis stock, 12.15% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ACB stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

ACB
Market cap$8.2 B
Total shares965.1 M
Float shares953.5 M
  - Institutional holdings (%)12.2%
  - Insider holdings (%)3.0%
Shares in short selling0.0%

ACB summary

Monday, May 20th, 2019
Open$8.62
Close$8.49
Day range$8.44 - $8.64
Previous close$8.68
Session gain-2.19%
Average true range$0.39
50d mov avg$8.93
100d mov avg$7.84
200d mov avg$7.43
Daily pattern
Weekly pattern lb11a

Aurora Cannabis performance

To measure stock performance is always good to benchmark with competitors or related stocks. In the following table, we compare Aurora Cannabis to :
Stock3m6m12m
ACBAurora Cannabis21.98%39.87%36.94%

Aurora Cannabis competitors

Unfortunately, we could not find any public company that could be defined as Aurora Cannabis competitor. This doesn't mean Aurora Cannabis does not have any competitor in the market, it's just we could not detected it.