Cronos stock: buy or sell?

CRON stock price: $11.86 -2.06% At close on August 19th, 2019

Updated on:
August 19th, 2019

1

Cronos closed today at $11.86 and dropped a fateful -2.06%. On Thursday CRON plunged a frightening -9.04%. Monday was the fourth red session in a row, sliding in full a -15.55%.

Should I buy Cronos 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. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Cronos stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Cronos stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 12 ratings published for CRON stock in the last 30 days.

Is CRON a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-9Canaccord GenuitySellHold
2019-8-9Bank of American/aBuy
2019-8-12Piper Jaffray Companiesn/aOverweight
2019-6-5Bank of AmericaUnderperformBuy
2019-6-28Consumer Edgen/aEqual Weight
2019-4-17Bank of American/aUnderperform
2019-3-5Cowenn/aMarket Perform
2019-3-27Canaccord GenuityHoldSell
2019-3-11BMO Capital MarketsMarket PerformUnderperform
2019-2-5GMP SecuritiesBuyHold
2019-2-25Jefferies Financial Groupn/aUnderperform
2019-1-18CIBCn/aOutperform

Cronos stock analysis

Daily outlook

Shares of Cronos dropped a fateful -2.06% and closed at $11.86.

Cronos shares dropped -2.06% to $11.86 today. Since July 26th when CRON stock price broke down the SMA200d line, it slid $-3.11 per share (-20.77%). CRON marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $15.58 would break this short term down trend and open possibilities for reversing this situation.

CRON stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -10.32% in a week last week, Cronos closed this week at $11.86 and slightly fell a rough -2.06%. With this, it's been 5 sliding weeks in a row, loosing $-3.11 (-21.84%).

Cronos finally dropped under the support line and now is sliding further looking for new supports. Since early July, when CRON stock price broke down the 40-weeks moving avarage line, it slid $-3.43 per share (-22.43%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high Cronos recorded early February and since then the price is -52.75% below that top.

CRON stock chart (weekly)

Cronos stock price history

Cronos IPO was on February 27th, 2018 at $8.24 per share1. Since then, CRON stock grew a 43.90%, with a yearly average of 43.90%. If you had invested right after CRON's IPO a $1,000 in Cronos stock in 2018, it would worth $439.00 today.

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

Cronos stock historical price chart

CRON stock reached all-time highs on February with a price of $25.10.

Cronos stock price target is $19.00

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 4 price predictions for CRON stock:
CRON stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-9Bank of AmericaRaises Target$20.00$26.0030%
2019-6-5Bank of AmericaUpgrades$13.00$20.0053.8%
2019-4-17Bank of AmericaInitiatesn/a$13.00-
2019-3-27Canaccord GenuityDowngradesn/a$17.00-
(in average)$16.50$19.0015.0%
Moving in a range from $26.00 and $13.00, the price forecast for Cronos stock is $19.00. In average, analysts' outlook on CRON price target is positive, upgrading the prediction by a 15.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Cronos reported outstanding results for 2018-Q4 on March. Cronos rocketed Earnings per Share (EPS) by 150.00%, beating experts of $-0.02. Cronos posted $-0.05.
CRON earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q42018-04-30n/a0.01n/a
2018-Q12018-05-15n/a-0.01n/a
2018-Q22018-08-14-0.01n/an/a
2018-Q32018-11-13-0.02-0.03n/a
2018-Q42019-03-26-0.02-0.05n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw a super good growth of 284.69% to $15.70 million dollars. When comparing 2018 vs 2017, in contrast, profit margin (that is, the net income divided by revenues) plunged a -181.83% to -120.80%.

CRON annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2015$-1.28 M-$0.39 M-30.1%-
2016$1.31 M-201.81%$-1.19 M-91.1%-408.18%
2017$4.08 M212.42%$2.49 M61.0%-309.32%
2018$16 M284.69%$-18.97 M-120.8%-861.54%

Quarterly financial results

Cronos posted $5.60 million in sales for 2018-Q4, a 49.04% improvement compared to previous quarter. Reported quarter income marked $-11.43 M with a profit margin of -204.01%. Profit margin plummed a -12.26% compared to previous quarter when profit margin was -191.76%. When comparing turnover to same quarter last year, Cronos sales marked a dazzling gain and skyrocketed a 247.86%. Looking back to recent quarterly results, Cronos posted 7 negative quarters in a row.
CRON quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$1 M-$-0.84 M-162.7%-
2017-Q2$1 M24.02%$0.17 M27.2%-120.71%
2017-Q3$1 M64.57%$0.88 M83.5%405.89%
2017-Q4$2 M52.07%$2.06 M128.1%133.19%
2018-Q1$3 M82.81%$-1.05 M-35.7%-150.90%
2018-Q2$3 M15.25%$0.72 M21.3%-168.86%
2018-Q3$4 M10.78%$-7.21 M-191.8%-1,097.23%
2018-Q4$6 M49.04%$-11.43 M-204.0%58.57%

Cronos ownership

When you are planning to invest in a company, it's always worth to overview its ownership structure.

Cronos shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 48.28% of all shares.

In case of Cronos stock, 9.35% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CRON stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Cronos:

CRON
Market cap$1.7 B
Total shares142.7 M
Float shares177.0 M
  - Institutional holdings (%)9.3%
  - Insider holdings (%)48.3%
Shares in short selling0.0%

Cronos summary

Monday, August 19th, 2019
Open$12.29
Close$11.86
Day range$11.70 - $12.32
Previous close$12.11
Session gain-2.06%
Average true range$0.91
50d mov avg$14.89
100d mov avg$15.56
200d mov avg$15.31
Daily patternlb06a
Weekly pattern lt01c

Cronos performance

To better understand Cronos performance you must compare its gains with other related stocks in same sector or industry. In the following table, we compare Cronos to :
Stock3m6m12m
CRONCronos-22.89%-45.89%19.32%

Cronos competitors

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