Sundial Growers trades sideways alongside uncertain market

  • NASDAQ:SNDL fell by 0.42% during Monday’s trading session.
  • ATB Capital Markets remains bullish on Sundial’s stock moving forward.
  • A Cannabis ETF reverse split shows the state of the sector right now.

UPDATE: Sundial Growers stock is trading flat on Tuesday. Shares have whipsawed between $0.3723 and $0.3757 in the first hour of trading. The market is relatively flat as whole as well. At the time of writing, the Nasdaq is flat, while the Dow is down 0.26%. 500 call contracts expiring June 17 were purchased in the session at a strike price of $1.50 for $0.01 per share.

NASDAQ: SNDL dipped further below $1.00 to start the week as the company mulls over being delisted from the NASDAQ or being forced to perform a reverse stock split. On Monday, shares of SNDL dropped lower 0.42% and closed the trading session at $0.38. Sundial’s stock underperformed the broader markets, as all three major indices managed to eke out a small gain to start the week. The Dow Jones eked out a small gain of 16 basis points, while the S&P 500 added 0.31%, and the NASDAQ rose higher by 0.40% during the session.

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Despite Sundial’s stock falling by 40% so far in 2022 and 68% over the past 52-weeks, one Wall Street analyst remains bullish on the stock. ATB Capital Markets analyst Frederico Gomes reiterated his Outperform rating for Sundial and a price target of $0.80. The positive rating comes as another Canadian cannabis giant, Canopy Growth (NASDAQ:CGC), was downgraded by Cannaaccord from $6.00 to $4.50 CAD per share following its disappointing quarterly earnings report. According to TipRanks, Canopy has a one Buy rating out of eleven analysts, and a median price target of $5.15.

Sundial stock forecast

The dire state of the cannabis sector right now could be summed up by the Global X Cannabis ETF (NASDAQ:POTX) announcing a reverse split for its fund. While we see this in struggling stocks, like potentially in Sundial, to see an ETF reverse split its shares are nearly large. The 1 for 6 reverse split will take place after the markets close on June 10th.

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