Sundial Growers

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Sundial Growers Inc. operates as a public company and trades on NASDAQ with the SNDL symbol. Since its initial public offering in August 2019, the cannabis-based company has had several ups and downs. In a broader scope, Sundial stock has had a significant decline in the last three quarters.

Primarily, Sundial revolves around four separate operational segments cannabis cultivation, cannabis retail, cannabis investments, and cannabis production. But despite falling and unpredictable stock levels, Sundial Growers, like the best cannabis players in the market, is a licensed cannabis producer. In fact, Sundial has modern indoor facilities to produce cannabis on a large scale.

For the most part, the modular growth strategy of Sundial has been successful. Plus, Sundial employs some of the most experienced cannabis growers in the industry that allows the company to stand out in the market. In line with the ups and downs of Sundial’s stock price, major brands of the company include Palmetto, Grasslands, Sundial Cannabis, and Top Leaf.

As a cannabis producer, Sundial Growers has been around since 2006 with headquarters in Calgary, Canada. But after the IPO in August 2019, it hasn’t been exactly a smooth ride for the cannabis production company.

Sundial Growers Statistical Overview

Sundial Growers Stock Forecast 2022

As of May 23, 2022, Sundial Growers’ stock stands at $0.42. In the last trading session, SNDL stock closed at a market value of $0.53 with an increase of 1.96%. This change, in turn, managed to render a gain of 0.57% on the S&P 500.

On the other hand, the DOW managed to gain 0.7%, whereas NASDAQ ended up adding 0.08% of SNDL stock gain. Contemporarily, Sundial’s stock has lost over 35% of its market value in a span of a single month. In fact, the company’s stock value on the S&P 500 has had a 5.26% of loss in April 2022.

But in turn of new events, SNDL stock is to split amidst a turnaround year. On June 27, 2022, there are a good chance Sundial Growers would announce a potential reverse split stock. But despite the speculative purchase of shares, SNDL stock price has had below the average fall on the NASDAQ.

The fact of the matter is that Sundial has managed to exhaust its grace period to revert the negative fall of its share price and ensure compliance. However, Q2 2022 seems like a turnaround year for Sundial Growers’ stock. Although the company is counting on the highest annual revenue stream, Wall Street also expects record-high profitability for SNDL in 2022.

In the upcoming June meeting, Sundial shareholders are probably going to vote for a stock reverse split. It has become clear to Sundial Growers that market expansion and sell-off are not always a good idea. In fact, one bad decision in haste can have a direct impact on the shares and stock prices.

On May 1, 2022, SNDL stock hit the lowest streak of 52-week. On May 12, investors started to realize that the share price of the Sundial is far from perfect and may not warrant a trading guarantee on the NASDAQ. If Sundial Growers doesn’t get any more extensions, the SNDL stock forecast would, in fact, hang in the balance.

Practically, our Sundial cannabis forecast hints maximum share price to cross the threshold of $1 by the end of 2022. But as mentioned earlier, Sundial might not be able to get another NASDAQ extension. As of now, Sundial Growers’ management professes that they have a clear plan to move forward with the stock reverse split by the end of Q3 2022.

Furthermore, the company has also made it clear that it is in the interest of Sundial Growers to remain publicly listed. If SNDL shareholders unanimously decide to vote for a reverse stock split, it would make the company a privately traded, illiquid, and discounted entity in the market.

Sundial Growers Stock 2021

In the last six quarters, investors have managed to spot a lot of red flags around SNDL stock. The truth is that cannabis sales of Sundial Growers started to shrink drastically in 2021. In fact, the net revenue of Sundial Growers decreased by 8% in 2021. By December 31, 2021, the net revenue of Sundial Growers came down to $22.7 million from $56.1 million.

In terms of the stock split of SNDL, the consolidation won’t have a direct impact on the operational fundamentals of the company. However, it would impact outstanding shares as well as the total share count. It means there would be diluted cash flow against total shares and earnings on each share.

And these diluted values may seem higher than before with a small denominator. Analysts, however, insist that the stock market has (almost) always managed to punish stocks that go through a split reverse. And that’s because the market regards reverse split as evidence of an underperforming company. But when it comes to the future outlook of SNDL and its stock, many investors continue to have high hopes.

Sundial Growers Stock 2020

After acquiring Alcanna, Sundial became the biggest private cannabis company in Canada. However, the cannabis producer and cultivator want to make more strategic decisions to boost their stock levels in the market. In fact, by the end of December 2020, the market perception of Sundial stock was negative and optimism among investors was at an all-time low.

One of the major strengths of Sundial’s stock levels is that it gains a great response from strategic capital investments, partnerships, and acquisitions. When it comes to the global cannabis market, Sundial wants to establish a more direct position to increase annual revenue, profit margins, and stock price.

On top of declining cannabis sales, the high-valued and premium products of Sundial Growers had started to struggle in 2020. This, in turn, had a negative impact on its stock price throughout the year. Back in 2020, the ground reality for Sundial Growers is much different than it is now.

In fact, the company wanted to add and roll out low-valued cannabis products into the market to appeal to a bigger market. And at the time, the prices of vaporizers, edibles, and concentrates become highly aggressive. On the flip side, high-valued product segments like oils and marijuana had started to decline in 2020. In fact, cannabis oil sales shrank by 65% alone.

In all seriousness, it would be fair to state that 2020 was an eye-opening year for Sundial Growers. On the bright side, Sundial increased its revenue stream due to more sales of concentrates and edibles. Overall, there was a balanced approach from Sundial to navigate back and forth between high-valued and low-valued product segments in 2020-21.

In 2020, SNDL investment losses were huge, and risk of dwindling stock levels loomed throughout the year. Speaking of SNDL stock red flags, the company’s investment shares with other cannabis businesses in Canada also led to significant losses. In fact, Sundial Growers’ investment shares in Village Farms International had losses of over CA$17.7 million. At this point, the stock price of Village Farms had been already down by 63% by the end of 2020.

This unrealized and nonstrategic approach from Sundial had a more negative impact on its stock price. Later on, the company understood that there are more productive and safer investments. But the sudden shift in market conditions due to the COVID-19 crisis had a negative impact on cannabis stocks all over North America. It would be fair to state that 2020 was an eye-opening year for Sundial Growers.

Sundial Growers Stock 2019

Sundial Growers went public on August 1, 2019, and since then – the company has had a tumultuous journey. Right from the start, the acquisition of Alcanna helped the company increase its revenue generation. On March 31, 2019, the acquisition of Alcanna was finalized and closing hinted to investors at a significant revenue increase for SNDL.

What’s interesting is that the opening stock price of SNDL is still its highest in 2019. At the time, it was quite obvious that Sundial Growers has a profitable and brighter future ahead. But back to back disastrous years, investors and market perception towards Sundial Growers started to change. On August 5, 2019, SNDL stock hits its highest price of $13.55 and the company hopes it would regain the same stock price by the end of Q4 2023.

How to Invest in Sundial Growers Stocks

The process to invest in cannabis stocks is just like other any stock placement and purchase process. Unlike other industries, however, investing in cannabis is highly profitable and renders incredibly high returns for investors in a short time.

Whether it’s your first or hundredth investment, the secret to make your investment successful is to conduct a thorough research about the cannabis stock you want to buy. If you want to invest in SNDL or any other cannabis stock, understand its risk management, comparative analysis, and future outlook to make the right decision.

As the legalization of cannabis would resolve more hurdles in the foreseeable future, investors shouldn’t feel reluctant to buy cannabis stocks. Now, SNDL may not be the best cannabis stock, but it has the growth potential to achieve that status by the end of 2023.

Remember, cannabis stocks come with short-term and long-term investment opportunities. Of course, the cannabis stock market is more volatile than ever, but forecasts don’t always pan out as experts predict. Still, opting for SNDL stock seems like a wise choice for investors to garner gradual returns over an extended period.

Where to Buy Sundial Growers Stock

If you’re ready to buy or invest in cannabis stocks, then you just need to have an online broker. However, it might be overwhelming to choose from a plethora of online broker solutions for investors. So, opt for a comprehensive, practical, and popular online broker tool like eToro.

You may not realize it but eToro has become one of the best online broker solutions in the market and different types of investors with different needs continue to buy or invest in stocks strategically. With eToro, you can make logical and calculated stock investment decisions in real-time and search for the most attractive and high-performance cannabis stocks in the market.

Here’s how you can get started with eToro:

Step 1: Open an Account

Your first move is to just fill out accurate information within the application form. After all, you have access to a new eToro broker account.

https://www.etoro.com/customer-service/how-to-open-etoro-account/

Open an Account
Create Account

Step 2: Upload ID

Part of the process to make an eToro account involves uploading relevant and updated ID. So, once you open an eToro account, make sure to upload your valid ID like a driver’s license, utility bill, or passport.

https://www.etoro.com/customer-service/how-to-open-etoro-account/

Proof of identity

Step 3: Make a Deposit

Before you can invest in, say, SNDL stock, you will have to add some funds into your eToro account. You can make a direct bank wire transfer, use a debit/credit card, or personal PayPal account to deposit funds.

https://www.etoro.com/customer-service/deposit-faq/

Make a Deposit

Step 4: Search for Sundial Growers Stock

Once you have more than sufficient funds in your new eToro account, you can buy or invest in cannabis stocks like SNDL. And it takes just a single click on “trade” to process placed stock order.

Investors can make the most out of eToro’s trading ticket feature that allows them to set predetermined stop loss and profit levels.

https://www.etoro.com/discover

Search for Sundial Growers Stock

Step 5: Buy Sundial Growers Stock

Trade

Conclusion

By the end of March 30, 2022, most investors started to wonder whether or not they should continue to buy or invest in SNDL stocks. And the answer to that question is not as straightforward as most investors realize. Of course, despite all obstacles and challenges, Wall Street predicts that Sundial Growers would significantly increase its earnings and profitability that would bump up its stock price in the market.

But this prediction from Wall Street is based on a number of parameters and external factors that might not pan out for Sundial Growers. Still, financial analysts estimate SNDL stock to regain its strength by the end of June 2022. The focus of this prediction revolves around near-term trends that hint at a positive forecast and spark optimism among investors.

Once the business outlook of Sundial starts to break new boundaries, it is bound to have a positive impact on its stock price in the market. The recent increase of 74 cents a share implies that the stock can regain 80% of its strength by March 31, 2023. As much as the SNDL stock situation seems dire, the fact remains that cannabis investment has become synonymous with profitability.