In this article, we discuss 5 medical marijuana stocks to invest in. If you want to read our comprehensive analysis of these stocks and the current market situation, go directly to 10 Medical Marijuana Stocks to Buy Now.
5. Cronos Group Inc. (NASDAQ:CRON)
Number Of Hedge Fund Holders: 9
Cronos Group, Inc. (NASDAQ:CRON) is a cannabis manufacturer that manufactures, promotes, and sells hemp-derived supplements and cosmetics through e-commerce, retail, and hospitality partner channels in the United States. The company announced the launch of the first of what is expected to be a range of products, in partnership with Geocann, which will utilize the advanced VESIsorb delivery system on June 27.
Earlier this May, CIBC analyst John Zamparo upgraded Cronos Group Inc. (NASDAQ:CRON) to Outperform from Neutral with an unchanged price target of $4.50. The shares provide “downside protection and upside from a potential continuation of vastly improved results,” Zamparo tells investors in a research note post the Q1 results. Based on his remarks, there are “multiple reasons for optimism” with regards to Cronos, including $1 billion in net cash, attractive valuations, and a path to profitability that took a step forward in the first quarter.
Major hedge funds hold bullish positions in Cronon Group Inc. (NASDAQ:CRON). At the end of the first quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $48.14 million in Cronon Group Inc. (NASDAQ:CRON), compared to 11 in the preceding quarter. Traci Lerner’s Chescapmanager LLC is the leading shareholder in Cronos Group Inc. (NASDAQ:CRON), with 8.32 million shares worth more than $32.39 million.
4. Cara Therapeutics, Inc. (NASDAQ:CARA)
Number Of Hedge Fund Holders: 13
Cara Therapeutics is a biotechnology company focused on developing therapeutics to treat diseases associated with pain and inflammation. On June 30, the company announced positive topline results from its Phase 2 proof-of-concept clinical trials evaluating its oral medication, difelikefalin, for the treatment of moderate-to-severe pruritus in patients with notalgia paresthetica, a nerve disorder characterized by chronic pruritus of the upper to middle back.
Here is what the company’s Chief Medical Officer, Joana Goncalves, had to say:
“We are pleased to have demonstrated clinical proof of concept for oral difelikefalin in the treatment of pruritus associated with notalgia paresthetica. These topline results coupled with the results from our other programs support the broad development of oral difelikefalin across disease areas regardless of the underlying cause of pruritus. We look forward to completing our data analyses and discussing next steps with the U.S. Food and Drug Administration.”
Earlier this May, H.C. Wainwright analyst Oren Livnat “strongly” reiterated a Buy rating on Cara Therapeutics, Inc. (NASDAQ:CARA) with a $30 price target on its shares. The analyst, who believes the profitability of IV Korsuva and Cara’s profit-split revenue will “positively surprise investors,” noted that he looks forward to the Q2 results to get the first look at net IV Korsuva sales.
At the end of the first quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $75.8 million in Cara Therapeutics, Inc. (NASDAQ:CARA), compared to 15 in the preceding quarter. Out of the hedge funds being tracked by Insider Monkey, Thomas Steyer’s Farallon Capital is a leading shareholder in Cara Therapeutics, Inc. (NASDAQ:CARA), with 2.5 million shares worth more than 30.37 million.
3. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number Of Hedge Fund Holders: 15
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a marijuana real estate investment trust (REIT) that focuses on the acquisition, ownership and management of specialized industrial properties leased to operators for their regulated medical-use cannabis facilities.
JMP Securities analyst Aaron Hecht lowered his price target on Innovative Industrial Properties, Inc. (NYSE:IIPR) to $150 from $190 but maintained an Outperform rating on the shares on July 19 following the announcement of Kings Garden tenant default by the company’s management after it missed rental payments. Although the Kings Garden default will be a near-term negative to FFO, the analyst believes that the company’s cash flow should be recouped once the facilities are re-leased.
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.
2. Tilray, Inc. (NASDAQ:TLRY)
Number Of Hedge Fund Holders: 17
Tilray, Inc. (NASDAQ:TLRY) is a global pharmaceutical, cannabis-lifestyle and consumer packaged goods company that operates as one of the leading providers of medical cannabis in Australia and New Zealand for commercial, compassionate access, and research purposes and the first licensed producer to legally export medical cannabis from North America to Australia and New Zealand.
Roth Capital analyst Scott Fortune lowered the price target on Tilray, Inc. (NASDAQ:TLRY) to $4 from $8 and kept a Neutral rating on the shares on July 15. Tilray, Inc. (NASDAQ:TLRY) closed its strategic transaction and alliance with HEXO Corp, a leader in the Canadian cannabis market space, purchasing the HEXO note from HTI for $155 million, which provides financial benefits of cost-synergies and strengthening product innovation for global market opportunities, Fortune tells investors in a research note.
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.
1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number Of Hedge Fund Holders: 38
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is an Irish specialty cannabis biopharmaceutical company that develops several drugs to treat diseases and disorders, including sleep disorders, cancer, leukemia, liver diseases, and post traumatic stress disorder.
On June 13, UBS analyst Ashwani Verma initiated coverage of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) with a Buy rating and $194 price target as part of a broader research note on U.S. Pharmaceuticals. The company’s diversification from childhood epilepsy and Oncology is underappreciated, the analyst tells investors in a research note, stating that the Street is also overestimating the impact of patent cliff.
Earlier this May, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) has completed the divestiture of Sunosi in the U.S. to Axsome Therapeutics. Under the terms of the agreement, Jazz received an upfront payment of $53 million, and will receive a high single-digit royalty on Axsome’s U.S. net sales of Sunosi in current indications and a mid-single-digit royalty on Axsome’s U.S. net sales of Sunosi in future indications.
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.
You can also take a look at 10 Stocks to Buy Before the Next Recession and 10 Best Recession Stocks To Buy.
