Why Aurora Cannabis Inc. (NYSE:ACB) Stock Is Susceptible To Wild Price Swings

Stock analysts at Piper Sandler cut their rating on shares of Aurora Cannabis Inc. (NYSE:ACB) from Overweight to a new rating of Neutral in their opinion released on January 10. BofA/Merrill analysts have downgraded their rating of ACB shares from Neutral to Underperform in a separate flash note to investors on January 10. Analysts at Jefferies downgraded the company stock to a Hold call from its previous Buy stance, in a flash note that dated back to December 23.

Aurora Cannabis Inc. (ACB) is most likely going to rise -100 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $5 as 12-month high price target. This represents a whopping 136.97 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $3.83, which means a return possibility of 81.52 percent in comparison with the closing price of the stock of $2.11 in recent trading session. The lowest price set for the stock is $1 which is just above -52.61 percent from ACB share’s price at the end of session.

The stock is lingering around the initial support level of $2.06. After this, the following support is at the zone of $1.98. Up until the time the ACB stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 53.43 on the daily chart, and this may be a cause for concern. In case the price goes below $1.98 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $2.19 level may cause a pull-back move approaching $2.24 mark.

In the recent trading session, Aurora Cannabis Inc. (NYSE:ACB) shares lost -1.35% or -0.03 points to reach at $2.11 with a thin trading volume of 18.32 million shares. It opened the trading session at $2.05, the shares rose to $2.16 and dropped to $2.03, the range by which the price of stock traded the whole session. The company now has a market cap of $2.4 billion and currently has 1.12 billion outstanding shares. Aurora Cannabis Inc. (ACB) stock has accumulated 7 percent of market value in 21 trading days.

ACB stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.22 share in the trailing 52 weeks. The stock’s value fallen -0.93 percent year to date (YTD) compared to a decline of -73.38 percent in 52 week’s period. The firm’s shares are still trading -79.54 percent below its 1-year high of $10.32 and 40.75 percent up from 52-week low of $1.50. The average consensus ranking on the company is 0, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Past records have indicated that shares in Aurora Cannabis Inc. declined on 5 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.