This content represents the writer’s opinions and research and is not intended to be taken as financial advice. The information presented is general in nature and may not meet the specific needs of any individual or entity. It is not intended to be relied upon as a professional or financial decision-making tool.
The cannabis market is growing at a rapid pace. It will accelerate at a much faster rapid considering the US House of Representatives has now decriminalized the use of cannabis. We can see companies in the cannabis industry further accelerate their growth and development of new products to save lives.
Even with barriers and obstacles, the cannabis market has seen rapid growth over the last few years. Many companies use it to create lifestyle products and medications for their consumers.
These developments draw the attention of potential investors who are looking to get their hands on top cannabis companies. It will help investors diversify their portfolios and enable them to reap amazing opportunities in the long and short run on their investments.
Companies like Green Thumbs Industries have become a top pick for investors. As the US moves towards the legalization of cannabis, we can expect cannabis companies to make rapid progress. So, investors should keep Green Thumbs on their watch list.
The company is one of the best vertically integrated dispensaries. Green Thumb Industries also has licenses to run more than 50 retail stores in 7 different locations. Therefore, we can expect the company to increase its spending on the retail side to boost its presence in the local market.
With the legalization of cannabis, we can expect that number to go up. Green Thumb Industries went public in 2018, and the company’s share price has seen ups and dips throughout its short period on the market. Let’s take a look at its historical analysis and the future price prediction for 2023.
Table of Contents
Green Thumb Industries Statistical Overview
Green Thumb Stock Forecast 2023
Green Thumb Industries (GTBIF) is one of the largest marijuana companies in the US and has annual sales of more than $1 billion. However, expansion is still on the company’s plan, and they have recently sealed a contract with Circle K that may pave the way for future development.
Green Thumb made an announcement in October 2022 that it plans to open 10 Rise Express dispensaries in 2023, all of which would be located in close proximity to Circle K convenience shops.
Green Thumb may grow sales in New York and Maryland, two states that just legalized recreational marijuana. Although, Maryland’s adult-use market may not begin until 2024.
Nevertheless, it continues to improve its numbers from previous years. With the legalization of cannabis, we can expect the company to increase its production and target the retail market more aggressively.
The company also plans to research and introduce new products in the market. Therefore, it can create new drugs and explore other avenues thanks to the legalization of cannabis.
The price of Green Thumbs (GTBIF) stock was $9.989 as on December 13, 2022. By January 2023, the stock price is expected to be $12.918 and by the end of first quarter of 2023, the price should be $13.086
By the end of the second quarter, analysts expect the price to increase by 6.648% to give $13.956. After a string of increases and decreases throughout the year, the stock price is expected to reach $15.960 by the end of the year.
Investors looking to buy cannabis stock should keep a watch on Green Thumb Industries as it is one of the hottest stocks.
Green Thumb Stock 2022
Although the share price opened at $22 at the start of 2022, it continued to go down with slight fluctuations. The overall revenue of the first quarter was $242.6 million, which is a 25% increase over the 2021 revenue of $194.4 million. The gross profit for the first quarter of 2022 was $122.9 million, which was equal to 51% of sales.
The total selling, general, and administrative expenditures for the first quarter 2022 total of $68.4 million, which represented 28% of revenue. This is in comparison to the first quarter of 2021 was $59.3 million, which accounted for 31% of revenue.
The company’s overall sales for the second quarter of 2022 was $254.3 million, representing a 4.82% increase compared to the first quarter’s overall revenue in 2022. The rise in revenue was mostly caused by factors such as an increase in retail sales in the states of New Jersey and Illinois, as well as 19 more retail locations. The total revenue for the third quarter of 2022 was $261.2 million while the gross profit for the third quarter of 2022 was $131.2 million.
Green Thumb Stock 2021
The Green Thumb Industries stock price saw two major fluctuations through 2021. The Green Thumb Industries’ share value went up to $30 by the third week of January. It later crashed by 20% to $25 on the last trading of that month. It continued to enjoy the Bull Run and reached the share price of $38.45 within the first ten days of February 2021.
However, the stock price continued to see a gradual decline, and by the last week of March 2020, it was around the $25 mark. Despite posting great numbers through all quarters, Green Thumb Industries’ share price closed at $18 at the end of 2021. Overall, companies in the cannabis market saw a rapid decline in their share value.
Green Thumb Stock 2020
After enjoying a slight rise in its share price, Green Thumbs Industries stock nosedived to the lowest value in its history. The stock was traded for $10 by the second week of January. It starts to see a gradual decline before going down to $4 at the height of the pandemic. However, Green Thumb Industries’ stock price recovered quickly, closing at around $14 by the last week of December 2020.
The share price witnessed a staggering rise after the company realized the reports for the third quarter. Revenues improved by 30% compared to the last quarter and 130% from the previous year. The company also experienced a growth in its sales by 32% in the last quarter.
In addition, the driving force for the company’s stock increases due to the rumor about the usage of cannabis to prevent Covid-19. While there was little study available at that time, the market responded to these rumors by investing heavily in cannabis stocks.
Therefore, the share value of many companies, including the Green Thumb industries, increased significantly. By the end of 2020, the company’s stock value increased by more than 75%.
2019 was overall a bad year for the cannabis industry. Stocks of the big players in the market saw a significant decline in their share value. As per CNBC, 2019 was 2008 for the cannabis industry since major companies like Green Industries saw a huge fall in their stock prices, despite posting great numbers.
The biggest six stocks of the company wiped out investor fortune worth more than $25 billion in market value. Many analysts have termed this loss due to the slow approach by the Canadian government. While the Canadian federal government legalized the use of cannabis throughout the nation, the retail setup did not pick up as quickly as many expected.
The rollout of the bricks-and-mortar stores was slow and many companies, including Green Thumb Industries, had to stop their expansion plans for production. This external factor caused the company’s stock price to decrease significantly.
The share price of Green Thumb Industries opened at $7.7 on the first day of trading in 2019. It doubled to $16 by the first week of May and then gradually declined to $9.1 on the last trading day of 2019. The Green Thumb Industries stock did rebound a couple of times due to the company’s exceptional performance, but the external factor got the better share price.
The Q3 financial statements for 2019 show the company’s revenue growth by more than 290% from the previous year. Furthermore, the company experienced 50% growth in its quarter-to-quarter revenue, with an operating loss of $2 million.
Green Thumb Stock 2018
Green Thumb Industries launched its IPO on the 13th of June 2018 at $7.3. Its share price hovered between $6.8 and its IPO price till the second week of August 2018. Its share value saw a massive rise and tripled in just three weeks, reaching $22. However, that spike did not last long, and the company’s share price plummeted to $7.5 in the last few days of December 2018.
The spike in the second week of September was due to the exceptional numbers that Green Thumbs posted in its financial statements. It earned a whopping revenue of $13.6 million, increasing by more than 285% year over year. In addition, the company’s revenues also went up by 25% quarter over quarter.
Furthermore, Green Thumb Industries was able to raise net proceeds of $61 million via private placement for an RTO (reverse takeover) of a Canadian public company that included both brokered and non-brokered placements. The company also announced its expansion in Florida and Ohio by getting licenses for dispensaries in those states.
Despite these numbers and developments, the company couldn’t produce high GAAP profits. The main reason was that these companies had to pay taxes as per their gross profit margins since marijuana was illegal. In addition, the political scenario at the time was also driving investors away from cannabis stocks.
There was a lot of debate going on in the US House of Representatives, which made the cannabis market volatile. Ergo, investors pulled out their investments from many companies in the cannabis market, including Green Thumb Industries.
Conclusion
Green Thumb Industries is one of the few companies in the cannabis industry generating profit. It will continue to increase its foothold on the retail market and improve its revenues after the legalization of cannabis in the US.
Therefore, investors who want to diversify their portfolios must follow the company’s developments. It will help them buy the Green Thumb Industries stock at the right time and then sell it when the value increases.
WeInvests is a financial portal-based research agency. We do our utmost best to offer reliable and unbiased information about crypto, finance, trading and stocks. However, we do not offer financial advice and users should always carry out their own research.
Read More
