Cronos Stock Soars as Cannabis 2.0 Kicks Off

Pot-infused edibles and weed vape pens are now legal in Canada

by Karee Venema

Published on Oct 17, 2019 at 2:05 PM

The U.S. stock market is modestly higher, as Wall Street awaits updates on a potential Brexit deal. Several individual stocks are making big moves, though, including biopharmaceutical names Hepion Pharmaceuticals Inc (NASDAQ:HEPA) and Syros Pharmaceuticals Inc (NASDAQ:SYRS), as well as cannabis concern Cronos Group Inc (NASDAQ:CRON). Here's a quick roundup of what's moving the shares of HEPA, SYRS, and CRON.

Hepion Pharmaceuticals Stock Eyes Best Day in Years

Hepion Pharmaceuticals stock is at the top of the Nasdaq, up 64.6% at $4.11, and headed toward its biggest one-day jump since October 2015. Today's bull gap comes after a report published in the Journal of Pharmacology and Experimental Therapeutics indicated positive developments in the the company's liver disease drug, which is being tested on mice and rats. However, HEPA stock remains more than 79% lower year-to-date, and earlier upside was stopped short at its 120-day moving average -- a trendline that's served as staunch resistance over the past two years.

Syros Pharmaceuticals Set for Lowest Close Since June

Syros Pharmaceuticals, on the other hand, is near the bottom of the Nasdaq, after the company said it is halting the development of its experimental intravenous cancer drug, SY-1365, and instead focus its efforts on its oral cyclin-dependent kinase 7 (CDK7) inhibitor. At last check, SYRS stock is down 31.7% at $6.89, slicing through recent support at its 320-day moving average, and eyeing its lowest close since late June.

Analysts have yet to weigh in on SYRS stock, though the door is wide open for downward revisions, which could ramp up the pressure on the equity. While six of seven brokerages call Syros Pharmaceuticals stock a "strong buy," the average 12-month price target sits all the way up at $14.83, territory not charted since December 2017.

Cronos Bears in Overdrive as Stock Soars

Cronos stock is up 3.9% at $8.73, as the broader pot sector soars as Cannabis 2.0 -- which legalizes marijuana derivatives, including edibles and weed-infused drinks in Canada -- goes into effect. Today's pop was turned away by CRON's 40-day moving average, though, which has helped usher the shares to a three-month loss of 41.6%.

Cronos options volume is running quick today, too, with nearly 122,000 contracts on the tape so far -- seven times what's typically seen at this point, and volume pacing in the 99th annual percentile. The October 9.50 put is most active, and it looks like new positions are being purchased here for a volume-weighted average price of $0.56. If this is the case, breakeven for the put buyer at tomorrow's close is $8.94 (strike less premium paid).

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