As of Wednesday close, GrowGeneration Corp.’s (NASDAQ:GRWG) stock was up $0.34, moving up 12.78 percent to $3.00. The average number of shares traded per day over the past five days has been 949,760 shares. 5 times new highs have been achieved over the past 5 days, with a $0.35 gain in that time frame. In the last twenty days, the average volume was 987,285, while in the previous 50 days, it was 886,316.
Since last month, GRWG stock retreated -25.37%. Shares of the company fell to $2.55 on 08/25/23, the lowest level in the past month. A 52-week high of $8.63 was reached on 02/02/23 after having rallying from a 52-week low of $2.55. Since the beginning of this year, GRWG’s stock price has dropped by -23.47% or -$0.92, and marked a new high 9 times. However, the stock has declined by -65.24% since its 52-week high.
Valuation Metrics
The stock’s beta is 3.05. Besides these, the trailing price-to-sales (P/S) ratio of 0.74, the price-to-book (PB) ratio of 0.89, and the price-to-cash flow ratio of 22.23 may also be considered.
Financial Health
In the three months ended June 29, GrowGeneration Corp.’s quick ratio stood at 2.30, while its current ratio was 4.40, showing that the company is able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 24.90% percent. In the year ended June 29, EBITDA margin amounted to -8.24%, whereas operating margins totaled -15.50%. Based on annual data, GRWG earned $70.26 million in gross profit and brought in $278.17 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -76.20%. Return on equity (ROE) for the past 12 months was -15.70%.
According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. GRWG’s revenue fell -12.59% to $56.83 million during the quarter, while net income inched up to $63.14 million. While analysts expected GrowGeneration Corp. to report -$0.08 quarterly earnings, the actual figure was -$0.09 per share, beating the consensus estimate by -12.50%. During the quarter, the company generated -$2.74 million in EBITDA. The liabilities of GrowGeneration Corp. were 74.2 million at the end of its most recent quarter ended June 29, and its total debt was $45.36 million. The value of shareholders’ equity is $61.23 million.
Technical Picture
This quick technical analysis looks at GrowGeneration Corp.’s (GRWG) price momentum. With a historical volatility rate of 64.50%, the RSI 9-day stood at 57.22% on 30 August.
With respect to its five-day moving average, the current GrowGeneration Corp. price is up by +13.21% percent or $0.35. At present, GRWG shares trade -19.57% below its 20-day simple moving average and -6.83% percent below its 100-day simple moving average. However, the stock is currently trading approximately -10.98% below its SMA50 and -43.18% below its SMA200.
Stochastic coefficient K was 38.03% and Stochastic coefficient D was 19.89%, while ATR was 0.19. Given the Stochastic reading of 77.59% for the 14-day period, the RSI (14) reading has been calculated as 49.07%. As of today, the MACD Oscillator reading stands at 0.06, while the 14-day reading stands at 0.02.
Analyst Ratings
Craig Hallum upgraded its rating on GrowGeneration Corp. (NASDAQ: GRWG) to a Buy in a note to investors on May 10, 2023. The analysts firm previously had a Hold rating on the stock.GrowGeneration Corp. (GRWG) has been rated Overweight by analysts. According to 0 brokerage firms, GRWG is a sell, and 3 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate GrowGeneration Corp. stock as buy, with 4 recommending it as overweight.
With a median target price of $4.75, the current consensus forecast for the stock is $3.50 – $8.00. Based on these forecasts, analysts predict GrowGeneration Corp. (GRWG) will achieve an average price target of $4.96.
