11 Best Cannabis Stocks To Invest In

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8. GrowGeneration Corp. (NASDAQ:GRWG)

Number of Hedge Fund Holders: 6

Next on our list of the Best Marijuana Stocks to Invest in is GrowGeneration Corp. (NASDAQ:GRWG), a company that sells hydroponic gardening products that end users may purchase for use in new and emerging industries or segments, including the growing of cannabis. Incorporated in Colorado in 2014, GrowGen claims to be the largest chain of specialty retail hydroponic and organic garden centers in the United States.

The company had a tough Q3 2024 as its revenue fell by over 10.1% YoY to reach $50 million. The drop was driven by the closure of 19 retail locations as part of the company’s ongoing restructuring, including 12 solely in the last quarter. Net loss also increased by almost 56% YoY to reach $11.4 million. However, there was positive news regarding same-store sales, which grew by 12.5%, supported by strong commercial sales and robust customer retention. This marked the first quarter of positive same-store sales in 3 years. Operating expenses were also decreased by 5.4%, falling to $22.9 million, as GrowGeneration Corp. (NASDAQ:GRWG) continued to streamline its operations through store consolidations and cost-cutting measures. The company ended Q3 with a solid cash position, maintaining $55.2 million in cash equivalents and marketable securities, with no debt. It also repurchased an additional $1.8 million of stocks during the quarter, as it ‘continues to believe its equity has a compelling value’.

GrowGeneration Corp. (NASDAQ:GRWG) is shifting its focus to e-commerce operations, where the demand is higher. Its new B2B e-commerce portal, meant to be a one-stop destination for all hydroponic product needs across various categories, is set to go live in the fourth quarter.

6 hedge funds in the IM database held a stake in GrowGeneration Corp. (NASDAQ:GRWG) at the end of Q3 2024, with D E Shaw holding the largest stake of 608.944 shares, valued at just under $1.3 million.

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