GW stock: buy or sell?

GWPH stock price: $184.00 2.86% At close on May 21st, 2019

Updated on:
May 21st, 2019

0

GW Pharmaceuticals soared an excellent 2.86% and closed at $184.00.

GW Pharmaceuticals plc, a biopharmaceutical company, engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.

Should I buy GW stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to define your own trading strategy that fits your character as inversor. 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 GW Pharmaceuticals 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 GWPH will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is GW stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 10 ratings published for GWPH stock in the last 30 days.

The general sentiment of these ratings is bullish for GWPH stock, with 9 positive ratings.
Is GWPH a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-8OppenheimerOutperformMarket Perform
2019-5-8JPMorgan Chase & Co.Market PerformOutperform
2019-5-7Piper Jaffray Companiesn/aOverweight
2019-5-7OppenheimerMarket PerformOutperform
2019-5-7JPMorgan Chase & Co.OverweightOverweight
2019-3-18Cantor Fitzgeraldn/aOverweight
2019-2-27Piper Jaffray Companiesn/aOverweight
2019-2-27Cantor Fitzgeraldn/aBuy
2019-2-22Guggenheimn/aBuy
2019-1-2JPMorgan Chase & Co.n/aOverweight

GW stock analysis

Daily outlook

GW Pharmaceuticals soared an excellent 2.86% and closed at $184.00.

Shares of GW ended today at $184.00 and soared an excellent 2.86%. On Apr 23rd, SMA100d and SMA200d crossed up triggering a rise of 13.59%. On May 7th, GWPH hit a new all time high, pushing higher than on March tops. Check different trading setups that use ATHs as triggers. Since last February when GWPH stock price broke up the SMA200d line, it gained $44.89 (32.27%).

GWPH stock chart (daily)

Weekly outlook

Shares of GW rocketed a brilliant 5.11% this week. By mid April GWPH collapsed a bloodcurdling -7.67% in just one week. Late April GWPH boosted an outstanding 6.89% in just one week.

GW stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Not so far away is the last all-time high GW Pharmaceuticals marked early May. Since mid April when SMA20w and SMA40w crossed up, GWPH price gained $16.18 per share (9.64%). Since price and SMA40w lines crossed up late January, GWPH climbed $45.44 (32.79%).

GWPH stock chart (weekly)

GW stock price history

GW IPO was on May 1st, 2013 at $8.90 per share1. Since then, GWPH stock surged a 1,967.40%, with a yearly average of 327.90%. If you had invested $1,000 in GW stock in 2013, it would worth $19,674.00 today.

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

GW stock historical price chart

GWPH stock reached all-time highs on May 7th with a price of $196.00.

GW stock price target is $199.00

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 month we found 6 price predictions for GW stock:
GWPH stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-8OppenheimerDowngradesn/a$195.00-
2019-5-7Piper Jaffray CompaniesRaises Target$185.00$210.0013.5%
2019-5-7JPMorgan Chase & Co.Raises Target$180.00$215.0019.4%
2019-3-18Cantor FitzgeraldReiterates$193.00$196.001.6%
2019-2-27Piper Jaffray CompaniesReiteratesn/a$185.00-
2019-2-27Cantor FitzgeraldReiteratesn/a$193.00-
(in average)$186.00$199.007.0%
The price target for GW Pharmaceuticals stock is $199.00, moving in a range between $215.00 and $185.00. In average, analysts' outlook on GWPH price forecast is positive, increasing the target by a 7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

GW Pharmaceuticals disappointed experts on February when it published an Earnings per Share (EPS) of $-2.35 when the market consensus was $-2.97.
GWPH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.11n/a
2017-Q2-n/a-0.13n/a
2017-Q3-n/a-0.14n/a
2017-Q42018-02-05-2.03-2.43n/a
2018-Q12018-05-08-2.22-3.12n/a
2018-Q22018-08-07-2.4-1.26n/a
2018-Q32018-11-27-2.48-2.76n/a
2018-Q42019-02-26-2.97-2.35n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, GW annual revenues plunged a spooky -47.76% to $6.65 million dollars from $12.74 marked in 2018. When comparing 2018 vs 2018, on the other hand, profit margin (that is, the net income divided by revenues) rocketed a 1,236.75% to -1,080.64%.

GWPH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$43 M-$-7.10 M-16.7%-
2014$49 M14.31%$-23.77 M-48.8%234.72%
2015$43 M-11.21%$-67.53 M-156.1%184.16%
2016$13 M-68.92%$-82.95 M-617.1%22.83%
2017$11 M-17.89%$-176.42 M-1598.5%112.69%
2018$13 M15.41%$-295.17 M-2317.4%67.31%
2018$6.65 M-47.76%$-71.91 M-1080.6%-75.64%

Quarterly financial results

GW reported $6.65 million in revenues for 2018-Q4, a -610.11% decline compared to previous quarter. Reported quarter income marked $-71.91 M with a profit margin of -1,080.64%. Profit margin collapsed a -10,006.91% compared to previous quarter when profit margin was 8,926.27%. When comparing turnover to same quarter last year, GW Pharmaceuticals sales marked a hair-raising slide and collapsed a -14.10%.
GWPH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$2.02 M-$-42.59 M-2108.4%-
2017-Q2$3.09 M52.97%$-51.67 M-1672.2%21.32%
2017-Q3$2.87 M-7.09%$-55.42 M-1930.3%7.25%
2017-Q4$7.75 M169.81%$-63.45 M-819.1%14.49%
2018-Q1$3.34 M-56.85%$-87.83 M-2627.5%38.42%
2018-Q2$3.43 M2.59%$-35.42 M-1032.9%-59.67%
2018-Q3$-1.30 M-138.04%$-116.44 M8926.3%228.73%
2018-Q4$6.65 M-610.11%$-71.91 M-1080.6%-38.24%

GW ownership

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

GW Pharmaceuticals shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.62% of all shares.

Bearish positions for GWPH stock account 0.00%, no big difference from last month.

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

GWPHINSYNVS
Market cap$5.7 B$71.5 M$190.3 B
Total shares30.7 M74.4 M2,310.0 M
Float shares29.8 M27.1 M2,180.0 M
  - Institutional holdings (%)82.0%24.4%11.7%
  - Insider holdings (%)0.6%63.7%0.0%
Shares in short selling0.0%0.0%0.0%

GW summary

Tuesday, May 21st, 2019
Open$180.00
Close$184.00
Day range$179.27 - $186.27
Previous close$178.88
Session gain2.86%
Average true range$7.22
50d mov avg$170.01
100d mov avg$155.08
200d mov avg$146.43
Daily pattern
Weekly pattern lt06a

GW performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared GW against Insys Therapeutics and Novartis in the following table:
Stock3m6m12m
GWPHGW Pharmaceutical...21.37%48.33%14.21%
INSYInsys Therapeutic...-84.42%-85.69%-86.01%
NVSNovartis4.92%8.19%25.16%

GW competitors

Defining a list of competitors for GW Pharmaceuticals it's tough. We selected 2 public companies that are related to and can be considered as competitors of GW Pharmaceuticals: