Cannapany on February 8, 2019 No Comments
Several hedge funds, other investment groups are attracted to the company
Aurora Cannabis (TSE: ACB) is one of the most-talked-about cannabis companies in the industry today, and for good reason. It is consistently showing that it has the management expertise and pockets to seal major deals and continues to innovate in a market that is changing on virtually a daily basis. Its stock has increased steadily since the beginning of the year – increasing from $5.03 on January to its current $7.60. Aurora is catching the eye of a number of institutional investors, who have recently begun to make massive purchases of the company’s stock.
One of these is IPG Investment Advisors, LLC. According to a filing with the Securities and Exchange Commission (SEC), the fund purchased 25,978 shares in Aurora, with a value of around $138,000. It has already increased that investment by around 25%.
Other hedge funds have been taking a position in the company, as well. Flagship Harbor Advisors LLC took a new position during the previous quarter, picking up $26,000 in stock. Farmers & Merchants Trust Co. of Chambersburg PA also acquired a new position during the quarter, purchasing $36,000. TCI Wealth Advisors Inc., joined, as well, taking a new position worth $51,000.
Other new positions were seen by Nwam LLC ($60,000) and Nikulski Financial Inc. ($60,000). As of the most recent data, around 0.10% of Aurora’s stock is owned by institutional investors and hedge funds.
Part of the interest, in addition to the continuous expansion seen by the company, stems from its quarterly results. In its most recent filing, which covered the third quarter of last year, Aurora reporting a per-share dividend of $0.09 for the quarter. This was substantially better than what analysts predicted – they forecast a dividend of just $0.04. For the quarter, Aurora reported revenue of $22.71 million and a net margin of 224.33%. The return on equity was 8.57%.
As 2019 begins to take shape and the company continues its strong negotiating expertise, Aurora should continue to be on the front lines of the cannabis industry and will see its stock steadily climb. The company is poised to become a household name in the marijuana space, instantly recognizable as a top brand as the ecosystem develops.
Congratulation!