In this article, we discuss 5 weed stocks to buy in 2022. If you want to read our detailed analysis of these stocks, go directly to 10 Weed Stocks to Buy in 2022.
5. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)
Number of Hedge Fund Holders: 11
Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) makes and sells agricultural equipment and supplies. Elite hedge funds hold large stakes in the company. At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $51 million in Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM), compared to 15 the preceding quarter worth $207 million.
Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is one of the leading hydroponics providers in the United States. As uncertainty lingers around the legalization of cannabis, more producers are turning to hydroponics to grow their weed production.
In its Q4 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) was one of them. Here is what the fund said:
“Our top 10 holdings represented 25.6% of the Fund’s net assets at the end of the fourth quarter. This is in line with historical weightings. Cash at the end of the quarter was 3.4%, which is in line with our low to mid-single digit targeted levels. We exited our position in Hydrofarm Holdings Group, Inc. as we felt the macro headwinds the company was facing in its end-markets were both challenging and worsening.”
4. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 12
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust that runs medical-use cannabis facilities. The firm has paid a growing dividend to shareholders for the past four years. On December 15, it declared a quarterly dividend of $1.50 per share, in line with previous. The forward yield was 2.45%.
Major hedge funds hold bullish positions in Innovative Industrial Properties, Inc. (NYSE:IIPR). At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $265 million in Innovative Industrial Properties, Inc. (NYSE:IIPR), compared to 15 in the preceding quarter worth $200 million.
3. GrowGeneration Corp. (NASDAQ:GRWG)
Number of Hedge Fund Holders: 13
GrowGeneration Corp. (NASDAQ:GRWG) owns and runs retail hydroponic and organic gardening stores. It runs 63 stores across the United States and is based in Colorado. 24 of these stores are in California. On December 7, Wells Fargo analyst Chris Carey initiated coverage of the stock with an Equal Weight rating and a price target of $18.
GrowGeneration Corp. (NASDAQ:GRWG) has attracted the interest of Wall Street as well. At the end of the third quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $32 million in GrowGeneration Corp. (NASDAQ:GRWG), compared to 17 in the previous quarter worth $128 million.
2. Tilray, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 16
Tilray, Inc. (NASDAQ:TLRY) makes and sells medical cannabis products. On January 25, the company announced that it would be expanding a medical cannabis product offering in Australia. It also revealed the launch of a new medical cannabis e-learning platform for healthcare providers. International cannabis products had led to 19% revenue growth for the company in the second quarter of 2021.
Tilray, Inc. (NASDAQ:TLRY) is one of the top cannabis stocks in the hedge fund universe. At the end of the third quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $84 million in Tilray, Inc. (NASDAQ:TLRY), compared to 17 in the previous quarter worth $94 million.
1. Canopy Growth Corporation (NASDAQ:CGC)
Number of Hedge Fund Holders: 17
Canopy Growth Corporation (NASDAQ:CGC) markets cannabis-based products. On February 9, the company posted earnings for the third fiscal quarter, beating market estimates on earnings per share by C$0.04. The revenue over the period was C$141 million, smashing analyst predictions by more than $5 million. The market-beating results led to a share price rally across the cannabis industry.
Top hedge funds are bullish on Canopy Growth Corporation (NASDAQ:CGC). Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Canopy Growth Corporation (NASDAQ:CGC), with 1 million shares worth more than $13 million.
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