HEXO Corp. [HEXO] Revenue clocked in at $164.40 million, down -61.43% YTD: What’s Next?

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HEXO Corp. [NASDAQ: HEXO] price surged by 6.73 percent to reach at $0.02. The company report on May 11, 2022 that HEXO To File Management Information Circular Seeking Shareholder Approval for Its New Debt Financing Arrangements and Equity Purchase Agreement.


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This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated May 2, 2022 to its short form base shelf prospectus dated May 7, 2021 and amended and restated on May 25, 2021.

HEXO Corp. (TSX: HEXO; NASDAQ: HEXO) (“HEXO” or the “Company”), a leading producer of high-quality cannabis products, today announced that, on or about May 16, 2022, the Company expects to file a management information circular (the “Circular”) in respect of the special meeting of shareholders of the Company scheduled to be held on June 14, 2022 at 4:00 p.m. (EDT) to seek shareholder approval of, in accordance with the polices of the Toronto Stock Exchange (the “TSX”), certain aspects of the transactions (the “Transactions”) contemplated by (i) the proposed amendment to the terms of the Company’s outstanding senior secured convertible note to be assigned to Tilray Brands, Inc. (“Tilray”) pursuant to the terms of the Transaction Agreement and the Assignment and Assumption Agreement, each entered into by and among Tilray, HEXO and HT Investments MA LLC on April 11, 2022, and (ii) the equity purchase agreement (the “Standby Agreement”) with an affiliate of KAOS Capital Inc. (the “Standby Party”), all as more particularly described in the Company’s press release dated April 12, 2022. This is an important and significant step forward in executing on the Company’s strategic plan.

A sum of 4364534 shares traded at recent session while its average daily volume was at 7.61M shares. HEXO Corp. shares reached a high of $0.2697 and dropped to a low of $0.25 until finishing in the latest session at $0.27.

The average equity rating for HEXO stock is currently 2.50, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on HEXO Corp. [HEXO]:

Canaccord Genuity have made an estimate for HEXO Corp. shares, keeping their opinion on the stock as Speculative Buy, with their previous recommendation back on March 04, 2022. While these analysts kept the previous recommendation, Jefferies dropped their target price from $1.07 to $0.53. The new note on the price target was released on January 27, 2022, representing the official price target for HEXO Corp. stock.

The Average True Range (ATR) for HEXO Corp. is set at 0.03, with the Price to Sales ratio for HEXO stock in the period of the last 12 months amounting to 0.77. The Price to Book ratio for the last quarter was 0.21.

HEXO Stock Performance Analysis:

HEXO Corp. [HEXO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.73. With this latest performance, HEXO shares dropped by -22.42% in over the last four-week period, additionally sinking by -72.49% over the last 6 months – not to mention a drop of -96.14% 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 38.63, with the RSI for the last a single of trading hit 46.07, and the three-weeks RSI is set at 36.36 for HEXO Corp. [HEXO]. The present Moving Average for the last 50 days of trading for this stock 0.4022, while it was recorded at 0.2527 for the last single week of trading, and 1.0067 for the last 200 days.

Insight into HEXO Corp. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and HEXO Corp. [HEXO] shares currently have an operating margin of -76.71 and a Gross Margin at -8.76. HEXO Corp.’s Net Margin is presently recorded at -92.72.

Return on Total Capital for HEXO is now -10.13, given the latest momentum, and Return on Invested Capital for the company is -16.25. Return on Equity for this stock declined to -17.88, with Return on Assets sitting at -11.45. When it comes to the capital structure of this company, HEXO Corp. [HEXO] has a Total Debt to Total Equity ratio set at 68.23. Additionally, HEXO Total Debt to Total Capital is recorded at 40.56, with Total Debt to Total Assets ending up at 37.98. Long-Term Debt to Equity for the company is recorded at 10.30, with the Long-Term Debt to Total Capital now at 6.12.

Reflecting on the efficiency of the workforce at the company, HEXO Corp. [HEXO] managed to generate an average of -$89,868 per employee. Receivables Turnover for the company is 2.84 with a Total Asset Turnover recorded at a value of 0.12.HEXO Corp.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 1.00.

HEXO Corp. [HEXO] Insider Position Details

There are presently around $21 million, or 18.03% 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 30,883,178, which is approximately 30.003% of the company’s market cap and around 3.27% of the total institutional ownership; HUDSON BAY CAPITAL MANAGEMENT LP, holding 27,347,535 shares of the stock with an approximate value of $6.92 million in HEXO stocks shares; and MIRAE ASSET GLOBAL INVESTMENTS CO., LTD., currently with $2.95 million in HEXO stock with ownership of nearly 188.741% of the company’s market capitalization.

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 41 institutional holders increased their position in HEXO Corp. [NASDAQ:HEXO] by around 38,056,356 shares. Additionally, 42 investors decreased positions by around 33,202,815 shares, while 41 investors held positions by with 10,215,322 shares. The mentioned changes placed institutional holdings at 81,474,493 shares, according to the latest SEC report filing. HEXO stock had 11 new institutional investments in for a total of 160,723 shares, while 16 institutional investors sold positions of 7,281,403 shares during the same period.

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