Is Cannabis Stock Aurora Cannabis (ACB) a Buy?

: ACB | Aurora Cannabis Inc. News, Ratings, and Charts

ACB – This week started off with the cannabis sector plunging into the red with double-digit losses for many large-cap stocks. Aurora Cannabis was among one of the biggest decliners in the market. .

This week started off with the cannabis sector plunging into the red with double-digit losses for many large-cap stocks. Aurora Cannabis was among one of the biggest decliners in the market. 

Last week Aurora Cannabis announced that it had provided notice to all holders of the company’s CAD$230 million 5% unsecured, convertible debentures (which are due March 9, 2020), that they have an opportunity to voluntarily convert their debentures at the Amended Early Conversion Ratio. So what does this actually mean?

In simple terms, this means that anyone who held debentures had the option to convert them into common shares on Monday, November 18, 2019.  They will determine the amended early conversion ratio by giving a 6% discount to the VWAP (volume-weighted average selling price). By doing this, it causes further dilution of Aurora Cannabis’ share price. 

This is a significant factor that drove Aurora Cannabis down so drastically but there was also other negative news that hit the headlines. On Monday it was announced that the Shall Law Firm and the Rosen Law Firm have both announced Investigations of Securities Claims Against Aurora Cannabis. They are encouraging investors with losses of over $100,000 to contact the firm. 

Despite this unfavorable news, two analysts recently voiced their positive opinions about Aurora Cannabis which is why, as investors, we should not lose track of our long term perspective. 

Cantor Fitzgerald analyst Pablo Zuanic actually upgraded the stock last week upgraded to overweight from neutral while raising his price target to $5.85 from $5.10. His reasons for the upgrade are as follows: “We do not expect a worse quarter for the group” Aurora looks as if it’s in better shape than its competitors, the company shows a strong understanding of the market, and the updates announced Thursday afternoon were “more decisive actions” than rivals are making. It seems as if Aurora Cannabis is committed to survival during these tou times which many companies may have a hard time doing. Pablo also stated “Kudos for the timeliness and depth of disclosure (ACB - Get Rating)


ACB shares were unchanged in after-hours trading Tuesday. Year-to-date, ACB has declined -52.82%, versus a 26.55% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaron Missere


Aaron is an experienced investor who is also the CEO of Departures Capital. His primary focus is on the cannabis industry. He also hosts a weekly show on YouTube about marijuana stocks. Learn more about Aaron’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
ACBGet RatingGet RatingGet Rating
CGCGet RatingGet RatingGet Rating
GWPHGet RatingGet RatingGet Rating
CRONGet RatingGet RatingGet Rating
APHAGet RatingGet RatingGet Rating
TLRYGet RatingGet RatingGet Rating
CTSTGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Why Are Stocks Floating Higher?

Why are stocks breaking above 6,000 once again? When will they make news highs? And what is an investor to do now? Seasoned investor Steve Reitmeister shares his thoughts in this updated commentary.

How is the Stock Market Like a Helium Balloon?

Stocks have finally broke above 6,000 for the S&P 500 (SPY). The more important question is what comes next? Steve Reitmeister provides his answer in his latest market commentary.

Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Read More Stories

More Aurora Cannabis Inc. (ACB) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All ACB News