When it comes to the stock market, there are plenty of turnaround stories in which badly performing stocks eventually make a return and that is what investors in Canadian cannabis firm Aurora Cannabis (NASDAQ:ACB) would probably want to happen with the stock.
On Friday, ACB stock moved up 6.31% to $4.21 with more than 5.58 million shares, compared to its average volume of 6.15 million shares. The stock moved within a range of $3.9208 – 4.2400 after opening trade at $4.
The stock was one of the poorer performers in 2021 and ended up with a decline of as much as 31% for the year. While the decline in the stock may be alarming, it ought to be noted that one needs to take a closer look and judge Aurora on its own merits since the entire sector had gone through a difficult year.
In this context, it is necessary to keep in mind that while the Canadian market remains saturated at this point, the United States market remains the holy grail for Aurora. However, Federal legalisation is unlikely to happen any time soon. The company may have spoken about its aim to reduce its costs and make its balance sheet stronger.
However, experts believe that the future still remains a bit uncertain for Aurora at this point in time. In this situation, investors could consider staying on the sidelines for the time being with regards to Aurora stock.
ACB stock is trading below the 20-Day and 50-Day Moving averages of $4.61 and $5.47 respectively. However, the stock is trading below the 200-Day moving average of $7.11.