Last Updated: 12 Oct 2024
Executive Summary
Akanda Corp (AKAN) is a life sciences company specializing in medicinal chemicals and botanical products. Despite a challenging financial performance, with negative earnings and margins, the company's market capitalization remains at $3.08 million.
Company Overview
Headquartered in the United Kingdom, Akanda Corp operates in the medicinal cannabis industry. The company's focus on research, development, and production of cannabinoid-based products aims to address unmet medical needs.
Fundamental Analysis
Financials: Akanda Corp reported a revenue of $21.6 million for the trailing twelve months (TTM), with a gross profit of $32.7 million. However, the company incurred a net loss of $57.3 million, resulting in an EPS of -$286.4.
Profitability: Akanda Corp's profitability metrics are negative, with an operating margin of -5.22% and a net profit margin of 0%.
Valuation: The company's price-to-sales ratio of 1.427x and price-to-book ratio of 0.101x indicate that it is currently trading below its peers.
Technical Analysis
Trend: AKAN's stock price has been in a downtrend since its 52-week high of $22.35.
Support and Resistance: The stock has found support at $0.963 and resistance at $22.35.
Moving Averages: The 50-day moving average is currently at $1.232, while the 200-day moving average is at $5.81.
Short Term Outlook
The stock is currently trading below its 50-day and 200-day moving averages, indicating a bearish trend.
Resistance at $22.35 is a significant hurdle to overcome for a bullish reversal.
Short-term investors may consider waiting for a break above the 50-day moving average before entering a long position.
Long Term Outlook
Akanda Corp's long-term outlook depends on its ability to improve its financial performance and address its profitability challenges.
The company's focus on research and development may lead to innovative products and revenue growth in the future.
Investors with a long-term horizon may consider monitoring the company's progress and reassessing their investment strategy accordingly.
Analyst Recommendations
Currently, there are no available analyst recommendations for Akanda Corp.
