GrowGeneration Stock

GrowGeneration (NASDAQ: GRWG) is a large hydroponics supplier with 60 retail distribution centers in the United States. The products it sells include nutrients, soil, advanced lighting technology and hydroponics equipment. 

Founded in 2008, the Denver-based company’s products help farmers become more efficient.

This year hasn’t been great for GRWG despite a solid start; the stock was affected by the coronavirus pandemic’s impact on the economy.

GRWG Stock Price

GrowGeneration’s share price has been inconsistent throughout the year. It reached a high of $67.75 on Feb. 10 but could not sustain the momentum as the year continued. During the latter part of the 1st and 2nd quarters, the company saw its price fluctuate with no clear direction.

However, its stock has tumbled almost 48% for the year-to-date, with more than 47% of that decline coming in the last 3 months.

A close competitor of GrowGeneration is Hydrofarm Holdings Group Inc. (NASDAQ: HYFM). Hydrofarm was founded in 1977 and currently has a market cap of $1.58 billion compared to $1.33 billion for GrowGeneration. Hydrofarm shares followed a similar pattern to GrowGeneration, making a positive start to 2021 before falling in the early part of the year. Currently, its stock is down 32.75% year-to-date.

Like every other industry, the hydroponics market has been affected by the coronavirus pandemic. In addition, the emergence of the delta variant has continued to impact economies, with a spillover into supply chains that are now feeling the brunt of the lockdown measures.

GRWG Stock Forecast

After the company reduced its 2021 outlook, GrowGeneration shares fell 11.92%. This was after the company reported weak 3rd-quarter earnings. 

GrowGeneration recently announced a mutual termination of its HGS Hydro acquisition and asset purchase agreement. However, the companies said they will continue working together to develop a beneficial relationship. 

Pre-announced earnings for the 3rd quarter saw revenue guidance of $114 million to $116 million, bringing year-to-date 2021 revenue to $330 million to $332 million, up 150% from 2020. However, full-year revenue was revised down because of the termination of the HGS deal, which was expected to bring in about $20 million of revenue.

The company has recorded solid earnings, and with the recent acquisition of All Seasons Gardening, the company's portfolio of hydroponic garden centers has grown to 63 stores in 13 states. In the last 3 years, revenue has consistently improved, and its shares are at the lowest price since Nov. 20. With the fundamentals surrounding the stock looking decent, it remains to be seen whether there will be a turnaround in its share price.

GRWG Stock News

GrowGeneration has made several announcements recently, including the termination of its HGS acquisition. If you decide to purchase GRWG, it’s essential to keep updated with the latest news: 

• The company reported a mutual termination of its acquisition of HGS and its asset purchase agreement on Oct. 13 while acquiring All Seasons Gardening.
• GrowGeneration signed a distribution agreement with Groundwork BioAG to offer DYNOMYCO, a unique brand formulated explicitly for cannabis.
• GrowGeneration appointed Eula Adams to the board of directors.
• The firm announced an opening of 2 hydroponic garden centers in Los Angeles, which opened for business on Sept. 24.

As previously stated, the company also adjusted 3rd-quarter and full-year earnings, reducing its outlook after some unexpected weakness. Full-year earnings before interest, taxes, depreciating and amortization (EBITDA) is anticipated to be in the range of $47 million to $51 million, and strong growth is presumed compared to 2020.

How to Buy GrowGeneration Corp. Stock

If you already have a brokerage account, you simply have to log into your account, find GrowGeneration stock and purchase the number of shares you require. However, if you do not have an account, you can take the following steps to buy the stock:

Find a brokerage.

A broker can be an intermediary between buyers and sellers. 

Everyone wants a stock with minimal risk and commission. This is why research into the right brokerage company is essential — to ensure you get the best price and are not hit with unexpected payments or, in the worst-case scenario, scams.

Most brokers are likely to offer GRWG, which will allow you to buy a certain amount of shares, or in some cases fractional shares, at the current share price. Although be aware that the broker may take a small commission, depending on the firm you choose.

Calculate the number of shares you wish to purchase.

You have opened and funded an account of your choosing, and now you must calculate how many shares you want. This depends on the amount of money you have, the amount you wish to use and the company’s share price. It is crucial to assess the amount of risk you take and how it could impact your portfolio.

Make sure a plan is in place. For example, it may be helpful to start with a small purchase and build more shares by investing in the company consistently over a period of time.

Pick the order type.

Many order types are available, but the 2 order types you need to be aware of are either a market order or a limit order.

A market order fills your position at the current price and ensures the broker will more than likely fill your order. For example, you purchase 100 shares at $8, and the current market price is $8, the broker will almost certainly fill your order at $8. 

An alternative option is a limit order. A limit order gives investors the freedom to enter at a price of their choosing. However, the order is only filled if the price reaches that level so there is a risk that you may miss out on the trade.

Buy and submit.

If you take all the above steps correctly (double-check you have input the trade details correctly), you can click buy and submit as the final step, and your broker will likely notify you if the order is filled. In addition, you can manage the trade through your broker’s portfolio or trades tab.

Best Online Stock Brokers for GRWG

GrowGeneration is currently listed on the Nasdaq Stock Market, a major exchange, and many brokers are likely to offer its shares on their platforms. However, there is no guarantee that all brokers will list them. If your broker doesn’t provide GRWG stock, or you are looking for a broker who does, you can view the best online stock brokers for GRWG shares below.

GRWG on Benzing Pro

Screenshot taken from Benzinga Pro on 10-15-2021

GRWG shares haven’t had a great 2021, but the fundamentals surrounding the stock are OK. 

But the technicals tell a different story. The relative strength index (RSI) has dipped below the 30 (oversold) level several times since August. Still, there has been no relief for GRWG shareholders with sellers in control and the company’s stock continuing its decline. 

The stock is also trading well below the 50 moving average (MA) after failing to sustain a break above the level back in August. 

After an 11% sell-off in reaction to the news of the HGS acquisition termination and the technicals not looking great, GrowGeneration shares are not the most attractive right now. 

Potential Growth in the Cannabis Market

While GrowGeneration’s value has taken a hit this year, many outside factors can impact the industry, such as inflation, supply shortages, climate and, in this case, a pandemic. 

This year has not been ideal for GRWG shareholders, but profits have exceeded 2020, and its shares have the potential to recover. The expansion of its portfolio should help to improve revenue and growth.

The opening of new garden centers and further development into the cannabis industry may favor the company in the long run. 

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