SNDL Inc (NASDAQ: SNDL) is a Canada-based company that indulges in the production and sale of cannabis products. These cannabis products are for adult use and for medical markets.
The SNDL company works in four segments: Cannabis Retail, Cannabis operations, Liquor retail, and Investments. SNDL has launched some new products such as vapes, edibles, and beverages to serve different customer bases.
SNDL Inc. has done some good and bad things in the last few months. The good things are that the company has made more money, spent less money, paid off most of its debt, and made some smart moves to grow its business. The bad things are that the company lost money, showed a fall in quality, faced many problems and competition in the weed market, and sold some of its assets.
The company has also started a new business with another company to invest in different weed assets and make more money. The company has also bought some assets of a big weed company in Michigan, which is a state in the US where weed is legal. SNDL stock is very risky, but it could be an opportunity for the less risk averse investors.
Per TradingView, SNDL stock has a strong buy rating as SNDL stock has a maximum price target of $3.25, which implies a potential increase of 3.25% from its current price of $1.36.
SNDL Stock: Financials
In Q2 23, the company reported a revenue of $182.06 Million, a net income of $24.21 Million, and a negative profit margin of -13.30%. The company has an earnings per share (EPS) of -$1.10, a gross margin of 19.43%. According to Simply Wall Street, the company’s earnings are up 23.5% per year, and a significant insider selling over the past 3 months is happening which is a negative point for the company investors.
What’s Happening on the Charts?
SNDL stock price shows signs of weakness. It lost the gains it made below the key moving averages. The buyers failed to maintain the momentum and started to exit their positions, resulting in a decline in the stock price.
SNDL stock price has been in a downtrend for the past number of months, forming lower highs and lower lows patterns, and facing resistance from the upper trendline, which prevented it from breaking out of the trend.
The price action indicates that SNDL stock has been under selling pressure, and the buyers have been passive. On the other hand, the sellers have a strong advantage and continue to make short positions.
At press time, SNDL stock was trading at $1.36 with an intraday loss of 0.73%, breaking below the 200-day EMA, showing bearishness on the charts. The market cap of SNDL stock is $353.954 Million.
Over the span of a week, SNDL stock fell approximately 9.33%. Over the course of a month, the decline was 33.33%. Over a three-month period, SNDL stock price dropped by about 9.33%, while the decline extended to around 6.21% over the six months period. The stock’s performance throughout the year has been lackluster, with a year-to-date slump of approximately 35.24%.
Technical Analysis: What Next In SNDL Stock Price on 1-D Time Frame
SNDL stock is currently trading below the 50-day and 200-day SMAs, which are not providing support to the price trend. However, if selling pressure increases, the price could break below these SMAs and drop further.
The RSI indicator is currently at 31.33, which is in the oversold zone. However, the 14-day SMA is above the RSI curve, which is a bearish signal.
The MACD is also bearish, with the MACD line crossing below the signal line. This indicates that the SNDL stock is likely to continue to fall in the near future. Overall, the technical indicators suggest that SNDL stock is bearish in the short term.
Conclusion
SNDL stock is in the bear’s hands and has poor financials. The MACD, RSI, and EMA do not highlight bearishness on the daily chart.
Technical Levels
Support Levels: $1.32 and $1.00.
Resistance Levels: $1.48 and $1.62.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/10/27/the-future-of-sndl-stock-what-to-expect-in-2023-and-beyond/