8. GrowGeneration Corp. (NASDAQ:GRWG)
Number of Hedge Fund Holders: 6
GrowGeneration Corp. (NASDAQ:GRWG) is a leading specialty retailer of hydroponic and organic gardening products in the United States. The company operates over 30 retail and distribution centers across multiple states, with a product range encompassing nutrients, additives, growing media, advanced lighting technologies, and environmental control systems, catering to both commercial and home growers. Through their website, the company offers an extensive online superstore with over 10,000 products available for nationwide shipping. The company also provides turnkey facility designs, cultivation room designs, and on-site project consultations, aiming to enhance yields and reduce production costs for cultivators. GRWG is one of the best penny stocks with insider buying.
GrowGeneration Corp. (NASDAQ:GRWG) reported Q3 2024 net revenue of $50 million, slightly down from $53.5 million in Q2 2024, primarily due to planned store closures under their restructuring initiatives. The company achieved significant milestones, including the first positive same-store sales growth of 12.5% in three years. Proprietary brand sales increased to 23.8% of Cultivation and Gardening net sales, up from 19.4% last year, demonstrating progress toward their target of 35% by the end of 2025.
GrowGeneration Corp. (NASDAQ:GRWG) has completed its store rationalization plan, reducing its footprint from 65 stores to 31 operational locations. The company maintains a strong financial position with $55.2 million in cash and no debt as of September 30, 2024. It is also implementing a digital transformation strategy, including a B2B e-commerce portal launch in Q4, aimed at streamlining operations and enhancing customer experience. Management reiterated their full-year 2024 guidance for net revenue between $190 million to $195 million. The restructuring initiatives are expected to improve profitability and reduce expenses by a minimum of $12 million on an annualized basis, which may have positive effects on the stock price, as hinted by at least 2 insiders buying more than $100,000 worth of company stock in the last six months.
