SNDL Stock News: Sundial Growers surrenders $0.30 mark amid risk-aversion

Update: Sundial Growers tumbled 2.03% on Tuesday, hitting the lowest level since November 2020 at $0.2921. SNDL stock price tracked the late rebound on Wall Street, settling the day at $0.2940. With a 75 bps Fed rate hike almost a done deal, markets were thrown into a tailspin, as recession risks loom. Investors refrain from placing fresh bets on the cannabis industry in times of market panic and unrest, extending the bearish momentum in the stock price for the fifth straight trading day.

NASDAQ:SNDL plummeted during Monday’s market sell off as the former meme stock hit a new 52-week low price, briefly dipping below $0.30 during intraday trading. Shares of SNDL fell by a further 8.76% and closed the trading session at $0.30. The loss makes it five straight losing days for Sundial, as the stock continues to fall further below the key $1.00 mark for NASDAQ listings.

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Stocks continued to tumble on Monday as the fallout from the higher than anticipated inflation rate in May extended through the weekend. The Dow Jones plummeted by 876 basis points, the S&P 500 sank back into bear market territory with a 3.88% loss, and the NASDAQ dropped lower by 4.68% during the session.

Cannabis stocks continue to be some of the biggest losers on Wall Street during this ongoing market weakness. The Global X Cannabis ETF (NASDAQ:POTX) fell by 8.8% on Monday, bringing its year to date losses to 55% overall. Tilray (NASDAQ:TLRY) lost a further 7.69%, while Aurora Cannabis (NASDAQ:ACB) dropped by 11.43% as both stocks hit a new 52-week low closing price alongside Sundial.

Sundial stock forecast

Given the recent performance of cannabis companies, Wall Street analysts have been hard at work on issuing stock downgrades for the industry. On Monday, Jefferies Financial Group issued a fresh downgrade for Canopy Growth (NASDAQ:CGC), although the price decrease was officially given for the Toronto Stock Exchange version of the stock which trades under TSE:WEED. Jefferies lowered its price target from $8.00 to $5.50 CAD. Canopy Growth fell by 9.05% on the TSX to close at $4.22 CAD on Monday.

Previous Updates

Update: Sundial Growers settled at $0.29, down 2.03% on Tuesday, as Wall Street remained on the back foot. Equities kept falling ahead of the US Federal Reserve monetary policy decision, as market participants increased bets of an even more aggressive quantitative tightening. Several banks are now pricing in a 75 bps rate hike, while the central bank is expected to present fresh Economic Projections, which may also shock financial markets. The Dow Jones Industrial Average lost 152 points, while the S&P 500 shed 0.43%, sliding deeper into bear market territory. On the other hand, the Nasdaq Composite was able to close the day in the green, up 19 points or 0.18%. Meanwhile, US government bond yields soared to fresh one-decade highs. The 10-year Treasury note yielded as much as 3.498%, to end the day at 3.48%.

Update: SNDL stock has lost the 30 cents level. After surpassing the range low on May 12 of $0.3412 last week, $0.30 was the last hope for bulls. This was the level that may have held up due to it being a psychological round number – at least for a penny stock. SNDL shares have richoted violently between $0.2921 and $0.3070 during the Tuesday morning session. 474 call contracts for the $0.50 strike price expiring on July 29 exchanged hands during the session for a price of $0.02. Even still, this one is running on fumes. Support is at $0.24 and $0.15, and SNDL looks like it will reach each of those levels this year.

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