Cronos Group Inc. (CRON) Could Be A Humongous Winner

Cronos Group Inc. (NASDAQ:CRON) short sellers believe it will rise in price. The most recent short interest data has been released for the November 15th settlement date, which shows a -1,371,730 share decrease in total short interest for CRON, to 28,682,369, a retreat of 4.56% since October 31st. Average daily volume for Cronos Group Inc. at the November 15th settlement plunged to 9,597,443, as compared to 15,124,651 at the October 31st report. That brought days to cover to 2.988543, a 50.4% increase from the 1.987094 days to cover recorded at the prior short interest data release. You could look at analyst ratings. The average analyst recommendations at 0 suggests selling these shares. But the opinions of a small number of people, though sometimes influential, doesn’t always speak for the hundreds of thousands of traders on Wall Street.

By watching the trading activity of corporate insiders, it will become easier to get a sense of Cronos Group Inc. (NASDAQ:CRON)’s prospects.

Cronos Group Inc. (CRON) is expected to jump by -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $16-month high price target. This represents a whopping 53.11 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $12, which represents a return potential of 14.83 percent when compared to the closing price of the stock of $10.45 on Thursday, December 06. The lowest price target for the stock is $4.5 — slightly more than -56.94 percent from CRON’s current share price.

The shares are currently floating around the first support level of $9.95. Below this, the next support is placed in the zone of $9.45. Till the time, the CRON stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.09 on daily chart, which may remain a cause for concern. If the price breaks below $9.45 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $10.76 mark may result into a pull-back move towards $11.06 level.

CRON shares dropped -0.29 points or -2.7 percent on Thursday to $10.45 with a light trade volume of 11.992 million shares. After opening the session at $9.92, the shares went as high as $10.565 and as low as $9.76, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.85 billion and now has 177.15 million shares outstanding. Cronos Group Inc. (CRON) stock has gained 26.67 percent of market value in 21 trading days.

CRON stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.03 a share in the trailing twelve months. The stock’s value has surged 35.2 percent year to date (YTD) against a rise of 218.08 percent in 12 month’s time. The company’s shares still trade -31.7 percent away from its 1-year high of $15.30 and 226.56 percent up from 52-week low of $3.20. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Cronos Group Inc. (CRON) are trading at a P/E ratio of 88.97 times earnings reported for the past 12 months. The industry CRON operates in has an average P/E of 31.13. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 210.3 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4. 0 percent is the gross profit margin for Cronos Group Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.