As the investing world chugs steadily along towards May 20 of 2023, keen eyes find themselves fixed unwaveringly on the numbers for Ascend Wellness shares. As of Friday morning, the figures don’t seem to look too promising for potential stockholders. With shares opening at $0.88, it appears things might get rocky for this company in the months to come.
One of the first things that catches many investors’ eyes when examining AAWH’s financials is their debt-to-equity ratio of 2.16. While not alarmingly high, this can still cause some concern among those keeping tabs on AAWH’s balance sheet. Additionally, their quick ratio of 0.96 and current ratio of 1.86 suggest that taking on more debt right now might be ill-advised.
Those following AAWH since February may have already heard Cantor Fitzgerald’s take on these latest findings and their consequent “neutral” rating for the company in question. For those who missed it then; what we know now about AAWH could certainly lead towards a similar analytical conclusion.
On top of all this, there’s no ignoring the recent shifts in AAWH’s moving average price history with a current moving average sitting at $0.97 (overlooking the grand gap between that and the larger 200-day mark sitting at $1.33). At last glance today – shares experienced two different optimal points within their past year with a low point resting sluggishly at a concerning $0.81 and an unsurprisingly-high note noted at $3.31 (an unfortunate distance from where they sit now).
Needham & Company LLC hasn’t quite shared much in terms of optimism either by downgrading AAWH from a ‘buy’ to ‘hold’ report earlier in May – while some may regard minor adjustment as part-and-parcel to business-as-usual; this further complicates what many seem to have regarded as a tumultuous future ahead for AAWH’s stocks.
Overall, AAWH might be something to watch in these coming months – it’s hard to say with all the good and bad notes converging across its financials.
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Cormark Lowers Earnings Forecasts for Ascend Wellness Holdings, Inc. – Should Investors Be Concerned?
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”AAWH” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]There has been recent news regarding Ascend Wellness Holdings, Inc. (OTC:AAWH) that may give investors some pause for thought. Cormark, a research firm specializing in investment analysis, issued a report to clients and investors on Tuesday May 16th that contained critical information. Specifically, the report highlighted that Cormark had lowered their earnings forecasts for Ascend Wellness for the upcoming fiscal year of 2023.
Prior to this report, Cormark’s expectations were relatively optimistic. However, their latest forecasts anticipate that Ascend Wellness’ performance will be weaker than expected. This includes an expectation of earnings per share (EPS) for the year dropping from ($0.16) to ($0.35). Furthermore, even beyond 2023, projections don’t look too promising – Cormark estimates Ascend Wellness’ earnings per share for 2024 to reach ($0.21).
These revelations might concern potential investors looking into the cannabis industry and considering investing in Ascend Wellness. The company is primarily involved in the cultivation, manufacturing and distribution of cannabis-based consumer goods such as flowers, pre-rolls, concentrates and edibles among others. As of December 31st, 2021 it operated in around twenty retail locations.
It remains to be seen if these revised downwards forecasts from Cormark will significantly impact investor attitude towards Ascend Wellness. Should potential investors end up being dissuaded by this new data from proceeding with an investment into this particular company might prompt further scrutiny into its long term viability in the market as well as overall revenue visibility.
Investors are advised to exercise appropriate judgement on making decisions regarding Ascend Wellness Holdings; while it is always helpful to consider what research analysts have been predicting about any stock offerings public listed companies present themselves – ultimately no one can predict future results with certainty and any unforeseen factors can alter market sentiment quite quickly affecting both investor sentiment and how stock prices are later valued over time.
