What are the recent analyst consensus on Greenlane (USA Stocks:GNLN)?

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The average rating for Greenlane Holdings is 'Hold', as determined by one analyst. We offer advice to supplement the standard expert consensus on Greenlane Holdings. Our sophisticated recommendation engine employs a multidimensional algorithm to assess the company's growth potential, using all available technical and fundamental data at the time.

Main Takeaways

Greenlane Holdings (NASDAQ: GNLN) has been under the radar for many investors, but recent data suggests it may be worth a closer look. Despite a challenging fiscal year, the company reported a total revenue of $137.1M, which is impressive for a firm in the tobacco industry. However, it's important to note that the company's net income was a loss of $125.9M, reflecting significant financial challenges. The stock's 200-day moving average stands at $1.917, indicating a potential undervaluation at its current price. Furthermore, the company's shares short prior month were 100K, representing a short percent of 0.0303, which could lead to a potential short squeeze and a subsequent increase in stock price. However, the company's Jensen Alpha of -0.51 and Total Risk Alpha of -0.74 suggest a higher level of risk associated with this investment. Therefore, while Greenlane Holdings presents a promising investment opportunity, it's crucial for investors to consider the associated risks.

Published over a year ago

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Reviewed by Michael Smolkin

Every cloud has a silver lining, and the same can be said for the financial landscape of Greenlane Holdings (NASDAQ: GNLN). Despite operating in the Consumer Defensive sector and the Distributors service category, the company's financial performance has been marked by significant losses. Its Net Income From Continuing Operations recorded a significant loss of $125.9M, alongside a negative Profit Margin of -1.16. These figures clearly illustrate a challenging financial environment. However, not all is gloom for Greenlane Holdings. With a Total Revenue of $137.1M, it shows that the company is generating a decent top-line, albeit a substantial portion of it gets absorbed by its Cost Of Revenue ($112.1M). Furthermore, the company's shares present a potential upside of 10, with a Possible Upside Price of $5.69, hinting at a lucrative investment opportunity. From a risk perspective, the Total Risk Alpha of -0.74 and a Jensen Alpha of -0.51 suggest moderate levels of risk, which is further supported by a Standard Deviation of 5.27 and a Mean Deviation of 3.84. However, the company's 52 Week High of $6, combined with its 52 Week Low of $0.48, indicates substantial volatility. In conclusion, while Greenlane Holdings has certainly faced financial difficulties, its potential upside and decent revenue generation could present an attractive opportunity for investors willing to weather the storm. As always, due diligence is crucial before making any investment decision. Greenlane Holdings is set to announce its earnings today, with the forthcoming quarterly report anticipated on November 28, 2023. Given that many baby boomers remain indifferent towards the distribution sector, it is logical to consider Greenlane as a potential investment. We will assess whether Greenlane Holdings' shares are reasonably priced in light of the current economic outlook.

What are the recent analyst consensus on Greenlane (USA Stocks:GNLN)?

What is the right price you would pay to acquire a share of Greenlane Holdings? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

Watch out for price decline

Please consider monitoring Greenlane Holdings on a daily basis if you are holding a position in it. Greenlane Holdings is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Greenlane Holdings stock to be traded above the $1 level to remain listed. If Greenlane Holdings stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

What is happening with Greenlane Holdings this year

Annual and quarterly reports issued by Greenlane Holdings are formal financial statements that are published yearly and quarterly and sent to Greenlane stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.

Companies such as Greenlane Holdings often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

Greenlane Holdings Gross Profit

Greenlane Holdings Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Greenlane Holdings previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Greenlane Holdings Gross Profit growth over the last 10 years. Please check Greenlane Holdings' gross profit and other fundamental indicators for more details.

Is Greenlane a risky opportunity?

Let's check the volatility. Greenlane is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Greenlane (USA Stocks:GNLN) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. obtaining a share of a Greenlane Holdings stock makes you a part-owner of that company. Every cloud has a silver lining, and for Greenlane Holdings (NASDAQ: GNLN), that silver lining could be its promising investment potential.

Despite a challenging year with a net income showing losses of $125.9M and a negative operating margin of 0.49, Greenlane Holdings is showing resilience with a current ratio of 1.65X and a low debt to equity ratio of 0.10%. This suggests that the company has more than enough resources to cover its short-term liabilities. Furthermore, Greenlane's shares are currently trading below their book value, with a price to book ratio of just 0.08X, indicating that the stock may be undervalued. However, investors should tread carefully, as the company's probability of bankruptcy stands at a high 76.92%. Ultimately, while Greenlane Holdings does present certain investment opportunities, potential investors should consider the associated risks before diving in. .

Greenlane Holdings to bounce back in December

Despite the recent increase in Greenlane Holdings' Information Ratio to -0.1, which suggests a potential price decline, there are indicators that the stock may rebound in December. Market analysts are optimistic about the company's strategic initiatives and potential growth opportunities. While short-term volatility may be expected, the long-term outlook remains positive. Investors are advised to monitor this stock closely, as it could present a good buying opportunity in the upcoming month. Greenlane Holdings exhibits very low volatility, with a skewness of 0.17 and a kurtosis of 1.05. However, we recommend investors to further examine Greenlane Holdings' technical indicators to ensure that all market information is available and reliable. Greenlane Holdings is a potential penny stock. Although Greenlane Holdings may indeed be a viable investment option, many penny stocks are speculative by nature and are subject to artificial price inflation. We urge investors to fully understand the upside potential and downside risk of investing in Greenlane Holdings. Investors should be vigilant for signals such as email spam, message board hype, claims of breakthroughs, sudden increases in volume, unexpected news releases, unreported promotions, or demotions released before SEC filings. We also advise checking the biographies and employment history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with a microcap classification.

While it is possible to profit from Greenlane Holdings if you perfectly time your entry and exit, remember that penny stocks that have been the subject of artificial hype usually cannot maintain their increased share price for more than a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals. In light of the recent -5% decline in Greenlane Holdings stock, investors should exercise caution. The company's valuation market value stands at 0.5, while its valuation hype value is slightly lower at 0.48. The naive expected forecast value is 0.53, indicating potential for a slight recovery. However, with a possible downside price of 0.005, the risk of further decline is not negligible. The overall analyst consensus is a 'Hold', with one analyst maintaining a 'Hold' position. Given these factors, investors should consider the potential upside price of 5.69 against the possible downside before making a decision. The fiscal year end in December may also bring new developments that could impact the stock's performance. .

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Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Greenlane Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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