HEXO Corp. [HEXO] gain 24.73% so far this year. What now?

HEXO Corp. [NYSE: HEXO] traded at a low on 07/14/21, posting a -7.46 loss after which it closed the day’ session at $4.59. The company report on July 14, 2021 that HEXO provides update on Redecan acquisition.

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HEXO Corp (“HEXO” or the “Company”) (TSX: HEXO; NYSE: HEXO) is pleased to announce, that in connection with its previously announced acquisition of the entities operating the business of Redecan, it has now obtained and will be shortly filing the recently completed audited consolidated financial statements of Redecan for the financial year ended December 31, 2020 (“FY20”) and the unaudited interim financial statements for the first quarter ended March 31, 2021 (“1Q21”) prepared in accordance with Accounting standards for private enterprises (“ASPE”). The Company previously announced a definitive share purchase agreement to acquire Redecan, Canada’s largest privately-owned licensed producer.

“Redecan has the top consumer loyalty in Canada, impressive market share and leading products in key categories., we are excited to finally share additional financial information with HEXO shareholders,” said HEXO CEO and co-founder Sebastien St-Louis. “Redecan’s historical financial statements demonstrate exactly what we already knew: Redecan is one of the fastest growth LPs in Canada with positive income from operations, impressive margins, lean operational efficiency and strong revenue. Once closed, the acquisition will further strengthen our position as a leader in the Canadian cannabis industry, bolster the Company as we look towards becoming a top three global cannabis products company and put us firmly on the path towards positive EPS.”.

The results of the trading session contributed to over 6385165 shares changing hands. Over the past one week, the price volatility of HEXO Corp. stands at 5.77% while the volatility over the past one month is 4.52%.

The market cap for HEXO stock reached $688.35 million, with 149.97 million shares outstanding and 143.62 million shares in the current float. Compared to the average trading volume of 3.62M shares, HEXO reached a trading volume of 6385165 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about HEXO Corp. [HEXO]?

BMO Capital Markets have made an estimate for HEXO Corp. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 22, 2021. The new note on the price target was released on February 17, 2021, representing the official price target for HEXO Corp. stock.

The Average True Range (ATR) for HEXO Corp. is set at 0.29, with the Price to Sales ratio for HEXO stock in the period of the last 12 months amounting to 6.14. The Price to Book ratio for the last quarter was 1.07.

How has HEXO stock performed recently?

HEXO Corp. [HEXO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.93. With this latest performance, HEXO shares dropped by -25.73% in over the last four-week period, additionally sinking by -14.21% over the last 6 months – not to mention a rise of 57.84% 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 HEXO stock in for the last two-week period is set at 21.89, with the RSI for the last a single of trading hit 12.14, and the three-weeks RSI is set at 29.63 for HEXO Corp. [HEXO]. The present Moving Average for the last 50 days of trading for this stock 6.11, while it was recorded at 4.92 for the last single week of trading, and 5.43 for the last 200 days.

HEXO Corp. [HEXO]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and HEXO Corp. [HEXO] shares currently have an operating margin of -244.85 and a Gross Margin at -120.50. HEXO Corp.’s Net Margin is presently recorded at -676.48.

Return on Total Capital for HEXO is now -26.97, given the latest momentum, and Return on Invested Capital for the company is -76.72. Return on Equity for this stock declined to -81.50, with Return on Assets sitting at -69.55. When it comes to the capital structure of this company, HEXO Corp. [HEXO] has a Total Debt to Total Equity ratio set at 15.91. Additionally, HEXO Total Debt to Total Capital is recorded at 13.72, with Total Debt to Total Assets ending up at 12.70. Long-Term Debt to Equity for the company is recorded at 9.64, with the Long-Term Debt to Total Capital now at 8.31.

Reflecting on the efficiency of the workforce at the company, HEXO Corp. [HEXO] managed to generate an average of -$684,823 per employee. Receivables Turnover for the company is 1.91 with a Total Asset Turnover recorded at a value of 0.10.

Insider trade positions for HEXO Corp. [HEXO]

There are presently around $72 million, or 17.98% of HEXO stock, in the hands of institutional investors. The top three institutional holders of HEXO stocks are: ETF MANAGERS GROUP, LLC with ownership of 9,862,329, which is approximately 2.229% of the company’s market cap and around 4.93% of the total institutional ownership; MIRAE ASSET GLOBAL INVESTMENTS CO., LTD., holding 1,158,970 shares of the stock with an approximate value of $5.32 million in HEXO stocks shares; and D. E. SHAW & CO., INC., currently with $3.16 million in HEXO stock with ownership of nearly New of the company’s market capitalization.

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Positions in HEXO Corp. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 64 institutional holders increased their position in HEXO Corp. [NYSE:HEXO] by around 3,698,072 shares. Additionally, 33 investors decreased positions by around 1,832,056 shares, while 27 investors held positions by with 10,076,884 shares. The mentioned changes placed institutional holdings at 15,607,012 shares, according to the latest SEC report filing. HEXO stock had 39 new institutional investments in for a total of 2,129,710 shares, while 20 institutional investors sold positions of 1,521,309 shares during the same period.

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