Cronos Stock Gets Stubbed Out After Earnings

The company reported a wider-than-expected quarterly loss

Deputy Editor
Mar 26, 2019 at 9:57 AM
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The shares of Cronos Group Inc (NASDAQ:CRON) are 1.7% lower at $20.18 this morning, after the cannabis concern posted a wider-than-expected fourth-quarter loss. Revenue also missed the consensus forecast, even as it soared 248% year-over-year. 

CRON stock hit an all-time-high of $25.10 in early February, and came back within striking distance of this milestone in early March. The shares have since consolidated near the round $20 mark, home to the security's rising 50-day moving average. 

Analysts are cool on the stock, with the majority of the seven in coverage giving it a tepid "hold" rating. Plus, the consensus 12-month target price of $16 is at a roughly 20% discount to current levels. 

On the options front, near-term puts are more popular than usual. CRON's Schaeffer's put/call open interest ratio (SOIR) of 1.79 sits in the 99th percentile of its annual range.

Likewise, Cronos stock sports a 10-day put/call volume ratio of 0.66 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 78th percentile of its annual range. This means that puts have been being bought to open relative to calls at a faster pace than usual in recent weeks.

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