By: Dr. Diana Rangaves, PharmD
OrganiGram Holdings Inc. (NASDAQ: OGI) is a well-known player in the medical marijuana sector. Formerly known as Inform Exploration Corp, this Canada-based company is currently valued at $703.29 million and operates through its subsidiary, Organigram Inc. The company distributes dried cannabis and CBD oils online or over the phone in compliance with the Cannabis Act. It also wholesale-ships cannabis plant cuttings, blends, dried flowers, and pre-rolls to licensed wholesalers and retailers for adult recreational use.
OGI is smaller than its competitors, yet investors believe that it has great growth potential. The company’s stock has shown some growth since its last close, as the chart below shows:
OGI has enjoyed growth in the last year and has quickly become one of the top go-to stocks for investors in the cannabis industry. In February, the stock enjoyed a steady rise, peaking at a high of 6.00, the highest price in a year. The recorded volume was 143,205,000 and a 229.67% growth. However, OGI has gone on to become relatively stable, dropping and rising slightly throughout the month.
As of the close of the last trading session, OGI closed at $3.15, bouncing back 3.96% from the previous close of $3.03. This is the first rise since the price dropped from $3.36 the previous week. The 24-hour range has been between $3.04-$3.23. As for the 52-week range, the high currently stands at $6.45 and the low at $1.01.
In the last quarter, the company has recorded a revenue decline of 23.10%. This negative figure has mostly been due to the company’s declined selling prices and operational challenges. OGI has also cut down on its workforce due to the pandemic, contributing to the reduced revenue from production difficulties.
The earning yield, otherwise known as E/P, stands at -5.28%. Therefore, OGI investors should expect below-average returns over the next few trading periods, given the current statistics. However. OGI’s new cannabis product line, which targets budget-conscious consumers, is anticipated to reverse the current downward trajectory. Given his new line, the company’s decision to reduce its cash burn rate, and the renewed popularity in cannabis stocks in the US, OGI stocks’ price may improve.
Here is a complete stock quote of OrganiGram (OGI):
- Pre-market: 3.06
- Trade time: 2 Mar, 05:19 GMT-5
- Change: +0.12 (+3.96%)
- Previous close: 3.03
- Open: 3.16
- High: 3.23
- Low: 3.04
- Bid: 3.1100 x 2200
- Ask: 0.0000 x 29200
Takeaways
While OrganiGram (OGI) isn’t the biggest dealer in the market, its stocks have raised considerable interest in the last few months. In 2020, the company’s stock price roughly ranged at $1 and struggled to reach $2. However, the prices shot up to $6 in February and have since maintained above $2, closing at $3.15 in the last trading session. Recent adjustments by the company and the anticipation for more cannabis legalization in the US may cause some price fluctuations. Whatever way to look at it, OGI is definitely a stock to watch in the coming weeks.
