On September 21, 2023, JW Asset Management, LLC (Trades, Portfolio), a prominent investment firm, significantly increased its holdings in TerrAscend Corp (TSNDF, Financial), a leading cannabis company based in Canada. This article provides an in-depth analysis of the transaction, the profiles of both the firm and the traded company, and the potential implications of this move on the stock market.
Details of the Transaction
The firm added 5,000 shares of TerrAscend Corp to its portfolio at a trading price of $2.01 per share. This transaction increased the firm's total holdings in the company to 90,192,476 shares, representing 65.96% of its portfolio and 31.43% of TerrAscend Corp's total shares. Despite the relatively small share change, the transaction had a significant impact on the firm's portfolio due to the sheer volume of shares involved.
Profile of JW Asset Management, LLC (Trades, Portfolio)
JW Asset Management, LLC (Trades, Portfolio), based in Armonk, New York, is a renowned investment firm with a focus on the healthcare and consumer defensive sectors. The firm currently holds stocks in 10 companies, with a total equity of $275 million. Its top holdings include Catalyst Pharmaceuticals Inc (CPRX, Financial), Eli Lilly and Co (LLY, Financial), Novo Nordisk A/S (NVO, Financial), Celsius Holdings Inc (CELH, Financial), and Establishment Labs Holdings Inc (ESTA, Financial).
Overview of TerrAscend Corp
TerrAscend Corp, with a market capitalization of $604.708 million, is a single-segment company focused on the cultivation, production, and sale of cannabis products. Since its IPO on November 16, 2017, the company's stock has grown by 32.7%. However, the company's GF Value indicates a possible value trap, with a price to GF Value of 0.36. The company's stock price currently stands at $2.11, representing a gain of 4.98% since the transaction.
Analysis of TerrAscend Corp's Financial Health
As of September 23, 2023, TerrAscend Corp's Financial Strength is ranked 4/10, with a Profitability Rank of 2/10 and a Growth Rank of 0/10. The company's cash to debt ratio is 0.12, ranking it 860th in the industry. Its Altman Z score is -1.44, indicating potential financial distress.
TerrAscend Corp's Performance in the Drug Manufacturers Industry
In the Drug Manufacturers industry, TerrAscend Corp's ROE and ROA rank 928th and 937th respectively, indicating underperformance. The company's gross margin growth and operating margin growth are both at 0.00, suggesting a lack of profitability growth.
TerrAscend Corp's Growth Over the Past Three Years
Over the past three years, TerrAscend Corp has experienced a revenue growth of 17.80%, EBITDA growth of 11.90%, and earning growth of 4.70%. However, the company's predictability rank is not available, indicating uncertainty in its future performance.
TerrAscend Corp's Stock Momentum
The company's RSI 5 Day, RSI 9 Day, and RSI 14 Day are 30.16, 45.24, and 52.03 respectively. Its momentum index 6 - 1 month and momentum index 12 - 1 month are 22.86 and 15.44 respectively, ranking it 221st in the industry.
In conclusion, JW Asset Management, LLC (Trades, Portfolio)'s recent acquisition of TerrAscend Corp shares represents a significant investment in the cannabis industry. Despite TerrAscend Corp's underperformance in certain areas, the firm's substantial stake in the company suggests confidence in its future prospects. Investors should monitor this development closely for potential impacts on the stock market.
