GrowGeneration Corp. [NASDAQ: GRWG] stock went on an upward path that rose over 42.69% on Thursday, amounting to a one-week price increase of more than 43.84%. The company report on August 13, 2020 that GrowGeneration Reports Record Financial Results Q2 2020.
Record Revenues of $43.5 Million, Adjusted EBITDA of $4.6 Million and Net Income of $2.6 Million.
GrowGeneration Corp. (NASDAQ: GRWG), (“GrowGen” or the “Company”), the largest chain of specialty hydroponic and organic garden centers, with currently 28 locations, today reported record revenues of $43.5 million and adjusted EBITDA of $4.6 million for Q2 2020. Q2 2020 was the Company’s 10th consecutive quarter of record revenues. The Company also reported record GAAP net income of approximately $2.6 million for Q2 2020 compared to net income of $1.1 Million for Q2 2019. As we continue to outpace guidance, we are increasing 2020 revenue guidance to $170M-$175M and Adjusted EBITDA to $17.0M-$18.0M. Revenue guidance for 2021 is $245M-$260M. Adjusted EBITDA guidance for 2021 is $26M-$28M.
Over the last 12 months, GRWG stock rose by 164.83%. The one-year GrowGeneration Corp. stock forecast points to a potential downside of -53.0. The average equity rating for GRWG stock is currently 1.80, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $571.13 million, with 37.82 million shares outstanding and 35.47 million shares in the current float. Compared to the average trading volume of 1.12M shares, GRWG stock reached a trading volume of 15819087 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on GrowGeneration Corp. [GRWG]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for GRWG shares is $8.17 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on GRWG stock is a recommendation set at 1.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Oppenheimer have made an estimate for GrowGeneration Corp. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on July 14, 2020. While these analysts kept the previous recommendation, The Benchmark Company raised their target price to Buy. The new note on the price target was released on May 20, 2020, representing the official price target for GrowGeneration Corp. stock. Previously, the target price had yet another raise to $7, while Craig Hallum analysts kept a Buy rating on GRWG stock.
The Average True Range (ATR) for GrowGeneration Corp. is set at 0.83, with the Price to Sales ratio for GRWG stock in the period of the last 12 months amounting to 5.73. The Price to Book ratio for the last quarter was 8.22, with the Price to Cash per share for the same quarter was set at 0.25.
GRWG Stock Performance Analysis:
GrowGeneration Corp. [GRWG] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 43.84. With this latest performance, GRWG shares gained by 72.89% in over the last four-week period, additionally plugging by 117.39% over the last 6 months – not to mention a rise of 164.83% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for GRWG stock in for the last two-week period is set at 80.04, with the RSI for the last a single of trading hit 83.49, and the three-weeks RSI is set at 77.05 for GrowGeneration Corp. [GRWG]. The present Moving Average for the last 50 days of trading for this stock 7.54, while it was recorded at 9.63 for the last single week of trading, and 5.34 for the last 200 days.
Insight into GrowGeneration Corp. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and GrowGeneration Corp. [GRWG] shares currently have an operating margin of +2.68 and a Gross Margin at +22.45. GrowGeneration Corp.’s Net Margin is presently recorded at +2.36.
Return on Total Capital for GRWG is now 4.51, given the latest momentum, and Return on Invested Capital for the company is 4.07. Return on Equity for this stock inclined to 4.48, with Return on Assets sitting at 3.48. When it comes to the capital structure of this company, GrowGeneration Corp. [GRWG] has a Total Debt to Total Equity ratio set at 14.84. Additionally, GRWG Total Debt to Total Capital is recorded at 12.92, with Total Debt to Total Assets ending up at 11.10. Long-Term Debt to Equity for the company is recorded at 11.22, with the Long-Term Debt to Total Capital now at 9.77.
Reflecting on the efficiency of the workforce at the company, GrowGeneration Corp. [GRWG] managed to generate an average of $10,211 per employee. Receivables Turnover for the company is 29.99 with a Total Asset Turnover recorded at a value of 1.48.GrowGeneration Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 2.80.
GRWG Stock EPS
With the latest financial reports released by the company, GrowGeneration Corp. posted 0.03/share EPS, while the average EPS was predicted by analysts to be reported at 0.02/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 50.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for GRWG. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for GrowGeneration Corp. go to 20.00%.
GrowGeneration Corp. [GRWG] Insider Position Details
There are presently around $118 million, or 33.10% of GRWG stock, in the hands of institutional investors. The top three institutional holders of GRWG stocks are: FEDERATED HERMES, INC. with ownership of 1,461,974, which is approximately New of the company’s market cap and around 7.10% of the total institutional ownership; JW ASSET MANAGEMENT, LLC, holding 967,741 shares of the stock with an approximate value of $12.1 million in GRWG stocks shares; and AWM INVESTMENT COMPANY, INC., currently with $11.25 million in GRWG stock with ownership of nearly New of the company’s market capitalization.
Positions in GrowGeneration Corp. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 55 institutional holders increased their position in GrowGeneration Corp. [NASDAQ:GRWG] by around 5,774,227 shares. Additionally, 15 investors decreased positions by around 1,294,457 shares, while 9 investors held positions by with 2,391,541 shares. The mentioned changes placed institutional holdings at 9,460,225 shares, according to the latest SEC report filing. GRWG stock had 42 new institutional investments in for a total of 4,687,047 shares, while 8 institutional investors sold positions of 97,379 shares during the same period.