Some analysts believe that Aurora Cannabis (TSE: ACB) is losing its strength; however, the market shows otherwise. This year has been a struggle for all companies, Aurora included, but the company has always been prepared to keep its stamina up as it prepared for long-term growth in the industry. Given the amount of interest the company is receiving from investors, it is still favorable as a leading cannabis company.
During the most recent 13F reporting cycle, institutional investors have purchased great amounts of Aurora stock. The company continues to improve its margin profile and its discounted valuations, making it a strong multi-year investment.
One industry analysis firm, Business Quant, explains, “Institutional investors generally have tools and resources at their disposal – such as channel connections, access to managements and research platforms – which provides them an edge over retail investors. This class of sophisticated investors also tends to invest with a long-term time horizon and ignores short-term fluctuations. So, tracking their trading activity can sometimes provide us with leading insights about where a company and its shares may be headed over the coming weeks and months.”
According to a review of the larger institutional investors, only seven have reduced their position in Aurora. Another 23 have either maintained their portfolio or purchased more of the company’s stock, preparing for what is expected to be a new growth explosion.
Aurora has cut back on production as the entire industry has entered a lull, which is going to help it reduce its expenses in both the near- and long-term. This is going to prove extremely beneficial to the company’s future growth and will help it to overcome the current slower market. Given the rapid advance with which cannabis regulations are changing across the globe, Aurora’s physical position in strategic countries will give it a boost as these regulations change.
The analysts at Business Quant conclude that “Aurora Cannabis, with its presence in over 25 international markets, is en-route to becoming a prominent international cannabis brand over the coming years. Sure, its journey would involve the occasional few speed bumps, but its management has proven time and again that they’re quite capable of tackling operational and financial challenges.”