scorecard'A number of red flags': Aurora Cannabis shed 19% on a string of bad news. Here's what 4 analysts are saying.
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'A number of red flags': Aurora Cannabis shed 19% on a string of bad news. Here's what 4 analysts are saying.

Carmen Reinicke   

'A number of red flags': Aurora Cannabis shed 19% on a string of bad news. Here's what 4 analysts are saying.
Stock Market2 min read

File - In this Friday, April 5, 2019, file photo, a customer takes a photo of large jars of marijuana from on display for sale at Rev-Up a cannabis marketplace in Los Angeles. California is trying a new strategy to cut into the state's huge illegal marijuana market. State regulators have proposed rules that would require legal shops to post their unique quick response code certificates in storefront windows to help consumers identify licensed businesses. Shoppers would use their smartphones to scan the familiar, black-and-white codes, similar to a bar code, to determine if a business is selling legal, tested cannabis products. (AP Photo/Richard Vogel, File)

Shares of Aurora Cannabis tumbled as much as 19% Friday after the company announced Thursday that its CEO Terry Booth is retiring and stepping down, and that it will cut 500 jobs to lower spending.

The decision to cut the full-time roles, including 25% of corporate positions, was an "incredibly difficult" one that was "not taken lightly," said Glen Ibbott, Aurora's chief financial officer, on a Thursday call with analysts and investors.

Aurora's executive chairman, Michael Singer, will take over as the interim CEO while the company board searches for a full-time replacement. Aurora's banking syndicate cut its credit facility, and the company will take a goodwill writedown of C$740 million to C$775 million related to assets the company acquired in Denmark and South America.

The company also announced preliminary results for the quarter that ended December 31 that fell short of Wall Street's expectations. The company said it expects cannabis revenue between C$50 million and C$54 million, where analysts were expecting $79 million, according to Bloomberg.

The slump is the latest setback for the beleaguered stock, which has struggled to gain in 2020 as turmoil continues to hit the cannabis industry. Shares of other cannabis companies also took a hit - Tilray sank 5%, Canopy Growth fell 7%, and Aphria traded 4% lower Friday afternoon in New York.

Aurora Cannabis has a consensus price target of $2.52 and six "buy" ratings, 11 "hold" ratings, and five "sell" ratings, according to Bloomberg data.

Here's what four analysts are saying about Aurora Cannabis, ranked in order of highest to lowest price target:




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