Insider Concerns Just Created a Buying Opportunity in Cronos Group Inc. (CRON)

On 21 December, shares of Cronos Group Inc. (NASDAQ:CRON) closed lower after a volatile session. The shares dropped -0.92 points or -8.27 percent at $10.21 with a light trade volume of 7.174 million shares. After opening the session at $11.3, the shares went as high as $11.39 and as low as $10, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.82 billion and now has 178.71 million shares outstanding. Cronos Group Inc. (CRON) stock has gained 24.51 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 32.1 percent year to date (YTD) against a rise of 150.25 percent in 12 month’s time. The company’s shares still trade -33.27 percent away from its 1-year high of $15.30 and 149.02 percent up from 52-week low of $4.10. 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.

Cronos Group Inc. (CRON) will probably climb -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $24-month high price target. This represents a whopping 135.06 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17, which represents a return potential of 66.5 percent when compared to the closing price of the stock of $10.21 on Friday, December 21. The lowest price target for the stock is $4.5 — slightly more than -55.93 percent from CRON’s current share price.

History has shown that shares in Cronos Group Inc. have gone down on 2 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $9.68. Below this, the next support is placed in the zone of $9.14. Till the time, the CRON stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.96 on daily chart, which may remain a cause for concern. If the price breaks below $9.14 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $11.07 mark may result into a pull-back move towards $11.92 level.

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 207.29 on the Price-to-Sales ratio. Compare this with the industry average P/S of 4.