Cannabis Bulls Run Wild: Best-Performing Stocks of September 2023
September 2023 saw a spectacular spike in the stock market and top marijuana stocks in the ever-changing landscape of the cannabis business, with some cannabis companies recording significant percentage gains. In addition, as the global acceptability of cannabis for medical and recreational purposes grows, investors are keenly tracking the performance of cannabis companies to capitalize on this burgeoning market. In this article, we will look at the top cannabis stocks with the largest percentage gains in September, as well as the factors driving these strong market movements and what investors can expect in the following months.
The cannabis industry, often regarded as one of the most dynamic and fast-changing, has been spurred by legislative reforms, rising consumer demand, and continued research into the plant’s diverse applications. Companies with solid footholds in growing areas, unique product offerings, and strategic collaborations have piqued the interest of investors. In the following sections, we will look into some of the top cannabis stocks, providing insights into the methods that have driven their success and giving a view into their future possibilities.
Cannabis Investments Blossom: September’s High-Gain Stocks
- Ayr Wellness Inc. (OTC: AYRWF)
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
- The Cannabist Company Holdings Inc. (OTC: CCHWF)
Ayr Wellness Inc.
AYR Wellness is a multi-state, vertically integrated cannabis company based in the United States. The Company is a retailer with 85+ licensed outlets and a cannabis CPG brand house. To expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Adult marijuana use can potentially increase the attractiveness of Ayr, Massachusetts businesses. The company has established its sixth linked dispensary in Pennsylvania. After getting regulatory approval from Arizona, Ayr planned to begin its 86,000-square-foot processing and growing facility in December. Also, the company made a big investment in the beverage business by acquiring Levia Cannabis Infused Seltzer in 2022.
Second Quarter 2023 Highlights
- Revenue up 18% Y/Y to $116.7 Million, Excluding Discontinued Operations
- Company Delivers Record Adjusted EBITDA1 of $29.4 Million, up 78% Y/Y, 12% Sequentially, with Adjusted EBITDA Margin of 25%
- GAAP Loss from Operations Improved 81% Y/Y, 79% Sequentially to $(4.5) Million, Excluding Discontinued Operations
The Company remains committed to its financial health and is positioning itself to achieve sustainable long-term growth and profitability across all markets of operation. AYR expects to generate revenue and Adjusted EBITDA growth in the second half of 2023 and into 2024 and to generate positive GAAP cash flow from operations for the calendar year 2023.
AYR’s expectations for future results are based on the assumptions and risks detailed in its Management’s Discussion and Analysis (“MD&A”) for the period ended June 30, 2023, as filed on SEDAR+ and with the U.S. Securities and Exchange Commission (“SEC”).
AYRWF Stock Performance
AYRWF stock closed on September 22nd at $2.85, up 236.88% in the last trading month. The stock has a 52-week price range of $0.5660-$4.41 and is up 137.50% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $4.04 per share. In this case, this would represent an upside of 41.89% from the last price of $2.85.
[Read More] Best Cannabis & Marijuana Stocks For Q3 2023
Ascend Wellness Holdings, Inc.
AWH facilities exist in Massachusetts, New Jersey, Ohio, Illinois, Michigan, and Michigan. AWH’s major commercial activities are the ownership and operation of facilities that produce well-known strains and a diversified product line. Ozone is the brand name the corporation normally manufactures and distributes its products. The shop sells cannabis-related items like candy, concentrates, pre-rolls, flowers, and vape pens. AWH operates 31 retail outlets and sells products to licensed marijuana businesses. As agreed upon by Ascend Wellness and MedMen Enterprises Inc., the purchase price of MedMen NY Inc. will rise.
Q2 2023 Financial Highlights
- Gross revenue increased 28.4% year-over-year and 7.0% quarter-over-quarter to $151.0 million.
- Net revenue, which excludes intercompany sales of wholesale products, increased 26.1% year-over-year and 7.7% quarter-over-quarter to $123.0 million.
- Retail revenue increased 18.9% year-over-year and 8.6% quarter-over-quarter to $89.9 million.
- Gross wholesale revenue increased 45.3% year-over-year and 4.7% quarter-over-quarter to $61.2 million. Wholesale revenue, net of intercompany sales, increased 51.0% year-over-year and 5.4% quarter-over-quarter to $33.1 million.
- Net income of $0.8 million during the quarter represented an improvement compared to a net loss of $21.2 million in Q2 2022 and $18.5 million in Q1 2023.
- Adjusted EBITDA1 was $21.3 million, representing a 17.3% margin. Adjusted EBITDA increased 2% and margins declined 409 basis points year-over-year. Margins declined 308 basis points quarter-over-quarter.
- As of June 30, 2023, cash and cash equivalents were $68.0 million and net debt2 was $241.8 million.
- Generated $25.4 million of cash flows from operations, representing the second quarter in a row of positive operating cash flow. This included a benefit from the recognition of a $22.8 million employee retention tax credit (“ERTC”), of which $17.5 million was collected and then returned to a lender as debt repayment of an advance previously received. Excluding this inflow, cash flows from operations would have been nearly $8 million.
AAWH Stock Performance
AAWH stock closed on September 22nd at $1.14, up 111.11% in the past month of trading. In this case, the stock has a price range of $0.46.4-$2.43, down 0.87% year to date. According to analysts at Tip Ranks, AAWH stock has a 12-month median price forecast of $2.88 per share.
The Cannabist Company Holdings Inc.
The Cannabist Company, formerly Columbia Care, is one of the largest and most experienced cultivators, manufacturers, and providers of cannabis products and related services, with licenses in 16 U.S. jurisdictions. The Company operates 125 facilities, including 94 dispensaries and 31 cultivation and manufacturing facilities, including those under development. Columbia Care, now The Cannabist Company, is one of the original multi-state providers of cannabis in the U.S. and now delivers industry-leading products and services to both the medical and adult-use markets. In 2021, the Company launched Cannabist, its retail brand, creating a national dispensary network that leverages proprietary technology platforms. In general, the company offers products spanning flower, edibles, oils, and tablets and manufactures popular brands, including Seed & Strain, Triple Seven, Hedy, gLeaf, Classix, Press, and Amber.
Words from The CEO
“Our second quarter results were solid, as we achieved more than $129 million in revenue, representing 4% sequential growth, confirming that we have kept our foot on the accelerator over the past 16 months. The financial impact of the measures we have taken to optimize our outstanding footprint and right-size operations are leading to increased profitability, with an 11% increase in gross profit over the first quarter and Adjusted EBITDA1 increasing 24% sequentially to over $20 million. We continue to focus on generating positive cash flow. Growing markets on the east coast fueled our sequential topline growth, counterbalancing further price compression in certain markets such as Florida, Illinois, and Massachusetts. We continued to reduce costs in the quarter, having now eliminated over $38 million, net, in annual expense, as we prioritize cash flow generation. We have announced the initial steps to manage our balance sheet in collaboration with our bondholders and are actively reviewing and considering additional refinancing alternatives. To enhance liquidity and improve operating efficiency, we have continued divesting non-core assets and pursuing commercial mortgages on eligible properties. Our decision to prioritize markets that are driving profitability and growth, and continue our commitment to the diversification of our revenue base, was reflected by continued store openings in Virginia, the launch of adult-use sales in our fully integrated Maryland market on July 1, targeted retail expansion in New Jersey, and the launch of enhanced manufacturing and cultivation capabilities in Ohio, Colorado, West Virginia and New York.”
Nicholas Vita, CEO of Columbia Care.
CCHWF Stock Performance
CCHWF stock closed on September 22nd at $1.2050, up 186.90% in the last month of trading. The stock has a 52-week range of $0.3550-$2.06, up 60.67% year to date. According to analysts at CNN Business, CCHWF stock has a 12-month average price target of $1.11 per share. In this case, this is a decrease of 7.56% from its last trading price of $1.2050.
Cannabis Titans: September’s Standout Stock Gains
The cannabis industry, often regarded as one of the most dynamic and fast-changing, has been spurred by legislative reforms, rising consumer demand, and continued research into the plant’s diverse applications. Additionally, companies with solid footholds in growing areas, unique product offerings, and strategic collaborations have piqued the interest of investors. In the following sections, we will look into some of the top cannabis stocks, providing insights into the methods that have driven their success and giving a view into their future possibilities.
As we look ahead, investors must retain a cautious yet positive attitude, as the cannabis sector remains vulnerable to changes in legislation and market sentiment. Furthermore, continued innovation, research, and strategic collaborations will be critical in molding the future of these cannabis enterprises. Overall, by remaining aware and adaptable, investors may position themselves to navigate the growing cannabis landscape and potentially reap the benefits of this ever-expanding sector in the months and years ahead.
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