5 Hot Penny Stocks On the Rise

2. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Hedge Fund Holders: 9

Share Price as of January 19: $0.9847

Aurora Cannabis Inc. (NASDAQ:ACB) is a Canadian company that produces, distributes, and commercializes cannabis and cannabis-derivative products in Canada and internationally, including medical and consumer cannabis products. On January 4, Aurora Cannabis Inc. (NASDAQ:ACB) reported that it had closed the sale of its Aurora Polaris facility for gross proceeds of about $15 million. Aurora Cannabis also reiterated its expectation of achieving adjusted EBITDA profitability for FQ2. The company’s balance sheet also remains in a net cash position, with approximately $320 million of cash and cash equivalents. It is one of the hottest penny stocks to invest in. 

On December 28, Piper Sandler analyst Michael Lavery maintained a Neutral rating on Aurora Cannabis Inc. (NASDAQ:ACB) and lowered the price target to $1 from $2. The reason for this downgrade is due to a reduction in sales estimates, which reflect the softer cannabis market momentum in Canada and internationally. Despite this, the analyst believes that Aurora Cannabis Inc. (NASDAQ:ACB) is still on track to reach an EBITDA-positive run rate by the end of Q2 2023. He also believes that Aurora Cannabis Inc. (NASDAQ:ACB)’s cost-cutting initiatives should drive significant sequential margin improvement, and estimates that the company will reach positive adjusted EBITDA in Q3 2023. The analyst also added that Aurora Cannabis Inc. (NASDAQ:ACB) has a strong balance sheet, which gives it an advantage in the capital-constrained cannabis industry. 

According to Insider Monkey’s data, 9 hedge funds were long Aurora Cannabis Inc. (NASDAQ:ACB) at the end of September 2022, compared to 10 funds in the prior quarter. Jim Simons’ Renaissance Technologies is a significant position holder in the company, with 4.25 million shares worth $5.18 million. 

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