© Reuters. Is HEXO a Buy Under $2?
Canada-based cannabis company HEXO’s (HEXO (NASDAQ:)) shares have declined in price over the past few months to their $1.60 all-time low yesterday. But can the stock rebound on the back of the promising Canadian cannabis industry? Read on.Headquartered in Kanata, Canada, consumer packaged goods cannabis company HEXO Corp. (HEXO) produces and distributes innovative products to serve the global cannabis market. Canada legalized cannabis in 2018, and Canada’s legal adult-use cannabis market is expected to reach CAD8.62 billion ($6.97 billion) by 2026. However, the industry continues to face several restrictions.
HEXO’s shares have declined 14.5% in price over the past month and 61.5% over the past three months to close yesterday’s trading session at $1.65, after hitting its all-time low of $1.60.
Scott Cooper was appointed as the company’s new President & CEO on October 20 after its former co-founded, CEO Sebastien St-Louis, left due to a ‘strategic reorganization.’ Also, HEXO has remained unprofitable in the third quarter, and its EPS is expected to remain negative in its fiscal fourth quarter (ended July 31, 2021). So, HEXO’s near-term prospects look bleak.
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