The share price of Sundial Growers Inc. (SNDL) was up 7.0% in premarket trading at last check. During Wednesday’s session, Sundial stock gained 12.15 percent to close at $1.00. A count of 233.33 million shares of SNDL stock traded on Wednesday was a bit higher than the 231.66 million shares traded daily in the past 50 days.
Within the past week, SNDL stock has gained 1.06%, bringing its twelve-month gain to 9.89%. For the past three months, SNDL stock lost -11.11%, whereas for the past six months, it has gained 97.82%. SNDL has an outstanding share count of approximately 1.66 billion and its market capitalization is $1.93 billion. The SNDL stock is once again flying high to the tune of positive mentions on different social media platforms.
Has SNDL been hyped up by memes?
The business of Sundial is divided into two segments: Cannabis and Investments. A total of 448,000 square feet of growing space is available at SNDL cannabis operations in Canada to cultivate small quantities of cannabis by using the “room” approach. In addition to its ‘craft-at-scale’ modular growing approach, award-winning genetics, and experienced growers, it is an award-winning licensed producer that crafts cannabis using state-of-the-art indoor facilities. SNDL’s investment operations aim to invest and partner globally in the cannabis sector in a direct and indirect manner.
Cannabis companies that are seen as likely consolidators have attracted traders in recent weeks. Many weed producers struggle to turn a profit, and SNDL is no exception. SNDL has strengthened its stock price due partly to its popularity on Reddit and other stock-focused forums. The SNDL, however, remains the riskiest bet since it has produced losses in the past.
Last month, Sundial announced its financial and operational results for the first quarter of 2021. A closer look at the same could provide us with insight into SNDL’s standing.
Financial and Operational Highlights:
- In the first quarter, operations at SNDL generated earnings of $1.7 million compared to a loss of $32.7 million in the previous quarter.
- A loss of $134.4 million was recorded by SNDL in the reported quarter as a result of $130.0 million of noncash amounts accounting for share price volatility.
- At March 31, 2021, SNDL held $96.0 million of cannabis-related loans and marketable securities which generated $15.7 million in income.
- In the reported quarter, SNDL’s cannabis revenue dropped 30% to $11.7 million from a year-ago revenue of $12.7 million.
Operational efforts by SNDL:
Sundial (SNDL) remained struggling to increase its cultivation and processing activities along with its commitment to improving cultivation outcomes. Due to the continued growth of the discount segment and inventory monetization strategies through the Grasslands brand, SNDL experienced decreased revenue in the first quarter. In addition, seasonality and COVID-19 restrictions affected SNDL’s sales in the first quarter.