In this article, we discuss the 5 best CBD stocks to invest in. If you want to read our comprehensive analysis of these stocks and the current market situation, go directly to 10 Best CBD Stocks To Invest In.
5. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number Of Hedge Fund Holders: 15
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a self-advised Maryland corporation that focuses on the acquisition, ownership and management of specialized industrial properties leased to operators for their regulated medical-use cannabis facilities. On March 14, it declared a quarterly dividend of $1.75 per share, an increase from the previous dividend amount of $1.50.
Craig-Hallum analyst Eric Des Lauriers upgraded Innovative Industrial Properties, Inc. (NYSE:IIPR) to Buy from Hold with a $175 price target on May 9. According to the analyst, an April short report drove sharp recent underperformance versus peers, with shares now trading at a rare discount versus competitors. In the five times this has happened in the last three years, Innovative Industrial Properties, Inc. (NYSE:IIPR) has outperformed peers by 76%-126% in each of the subsequent 12-month periods.
Major hedge funds hold bullish positions in Innovative Industrial Properties, Inc. (NYSE:IIPR). At the end of the first quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $311.4 million in Innovative Industrial Properties, Inc. (NYSE:IIPR), compared to 13 in the preceding quarter worth $273.7 million.
4. Tilray, Inc. (NASDAQ:TLRY)
Number Of Hedge Fund Holders: 17
Tilray, Inc. (NASDAQ: TLRY) is a pharmaceutical company that is involved in the cannabis, CBD oil, and industrial hemp markets. Headquartered in New York City, Tilray, Inc. (NASDAQ:TLRY) also has operations in Canada, Australia, New Zealand, and Latin America, with growing facilities in Germany and Portugal.
Earlier this April, Tilray, Inc. (NASDAQ:TLRY) announced that the company had signed a definitive agreement for a commercial and financial partnership with HEXO Corp, a leader in the Canadian cannabis market space. The partnership will strengthen both company’s respective operations and set the stage for production efficiencies, which are expected to yield increased productivity and other efficiencies amid intensely-competitive market dynamics. The agreement provides that HEXO Corp will pay Tilray, Inc. (NASDAQ:TLRY) an annual fee of $18 million for advisory services with respect of cultivation, operations, and production matters.
By the end of the first quarter of 2022, 17 hedge funds held stakes in the company worth around $85.48 million. This is compared to 20 funds in the preceding quarter, with stakes worth $118 million. The company has been a leader in the cannabis market for a while now, with D.E. Shaw being one of the largest shareholders in Tilray, Inc. (NASDAQ:TLRY) owning over 1.5 million shares of the stock, valued at roughly $11.7 million.
3. The Scotts Miracle-Gro Company (NYSE:SMG)
Number Of Hedge Fund Holders: 19
The Scotts Miracle-Gro Company (NYSE:SMG) is an American multinational corporation that operates as a fertilizer and agricultural chemicals firm. Owing to its Hawthorne Gardening Company subsidiary that has scooped up the biggest players in hydroponics, the company has ramped up its involvement in the cannabis industry. On April 25, the firm declared a quarterly dividend of $0.66 per share, in line with previous, while the forward yield was 2.74%.
On May 4, JPMorgan analyst Jeffrey Zekauskas upgraded The Scotts Miracle-Gro Company (NYSE:SMG) to Overweight from Neutral with a price target of $130. He notes that The Scotts Miracle-Gro Company (NYSE:SMG) is by far the market share leader in sales of branded lawn and garden products with a domestic market share that approximates 50%.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in The Scotts Miracle-Gro Company (NYSE:SMG), with 751,308 shares worth approximately $92.38 million. At the end of the first quarter of 2022, 19 hedge funds in the database of Insider Monkey held stakes worth $148.5 million in The Scotts Miracle-Gro Company (NYSE:SMG), compared to 26 in the preceding quarter.
2. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number Of Hedge Fund Holders: 35
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is an Irish specialty cannabis biopharmaceutical company that develops several drugs to treat diseases and disorders, including cancer and PTSD. A leader in the cannabinoid market, the company got its hands on the industry’s first FDA-approved cannabis-based medicine last February.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ), along with its cannabinoid subsidiary GW Pharmaceuticals (NASDAQ:GWPH), has kicked off construction of a new U.K. manufacturing plant at Kent Science Park in Sittingbourne. The company will reportedly invest more than $100 million into the 60,000-square-foot facility, which is expected to become operational in 2024 in order to specifically support manufacture of Jazz and GW’s two approved cannabis-based medicines.
On May 5, Cowen analyst Ken Cacciatore raised the price target on Jazz Pharmaceuticals plc (NASDAQ:JAZZ) to $225 from $200 and kept an Outperform rating on the shares. The analyst said that the company’s Q1 was solid and 2022 guidance was increased, driven by strong performance from Xywav, which remains his key focus.
35 hedge funds owned a stake in the company as of the first quarter of 2022, with Jim Simons’ Renaissance Technologies being the largest investor in Jazz Pharmaceuticals plc (NASDAQ:JAZZ), owning over 1.5 million shares worth roughly $236 million.
1. Altria Group, Inc. (NYSE:MO)
Number Of Hedge Fund Holders: 47
Altria Group, Inc. (NYSE:MO) is an American manufacturing company, that produces tobacco, cigarettes, and other related products. Following a strategic investment in Cronos Group (NASDAQ:CRON), the company expanded its portfolio to include cannabis and hemp-related products as well.
On May 19, Altria Group, Inc. (NYSE:MO) declared a $0.90 per share quarterly dividend, in line with the previous. The dividend is payable on July 11, to shareholders of record on June 15.
Earlier this April, Deutsche Bank analyst Steve Powers raised the price target on Altria Group, Inc. (NYSE:MO) to $60 from $54 and maintained a Buy rating on the shares following the company’s Q1 results.
A leader and a household name in the cannabis and tobacco industries, 47 hedge funds out of the 912 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $1.95 billion at the end of the first quarter of 2022. This is compared to 39 hedge funds in the previous quarter with a total stake value of approximately $1.05 billion. Rajiv Jain’s GQG Partners is a leading shareholder in Altria Group, Inc. (NYS:MO), with over 18.3 million shares worth more than $956 million.
Here is what Broyhill Asset Management has to say about Altria Group, Inc. (NYSE:MO) in its Q2 2021 investor letter:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
Disclosure: None. You can also take a look at 10 Dividend Stocks to Buy According to Billionaire Jeffrey Talpins and 12 Best Large-cap Biotech Stocks To Buy Now.
