5 investors betting big on SNDL shares

SNDL (NASDAQ:SNDL) being down more than 15% today, the US marijuana industry received a major boost from President Joe Biden. Biden has announced he will pardon thousands of federal marijuana offenders for ‘simple possession of marijuana’ and review the drug’s classification as a Schedule 1 substance. The pardon will only apply to offenders feds, though Biden has pushed state governors to invoke clemency as well. The President added:

There are thousands of people who have been convicted of possession of marijuana and may be denied employment, housing, or educational opportunities as a result. My forgiveness will take this burden away from them.

The executive order marks an important step towards removing the stigma around the marijuana industry. Between 2010 and 2018, more than 6.1 million people were arrested for possession of marijuana. In 2018, more arrests were made for marijuana-related crimes than for all violent crimes combined. These arrests have also had an unfair impact on people of color and low-income communities. Additionally, the order will help the United States establish its legal marijuana market, signaling a positive catalyst for all marijuana businesses.

There is no company-specific news to explain the decline in SNDL stock today. However, competitor Tilray (NASDAQ:TLRY) reported earnings below Wall Street expectations. Revenue reached $153.2 million, down 9% year-on-year, while earnings per share were a loss of 13 cents. Analysts had expected revenue of $155.9 million and an EPS loss of seven cents.

Five investors are betting big on SNDL stock

Tracking institutional ownership is important because these large investors provide liquidity and price support for stocks. In the second quarter, 152 13F filers reported holding SNDL, down two funds from the previous quarter. Meanwhile, the institutional put/call ratio stands at 0.56, down from 0.58 in the first quarter. This means that the funds hold more call options against the company than put options. With that in mind, let’s take a look at the main shareholders of SNDL:

  1. ETF Managers Group: 6.31 million shares. ETF Managers sold 1.43 million shares during the second quarter.
  2. FAS Jackson: 2.57 million shares. SAF purchased its entire stake during the second quarter.
  3. International Susquehanna Group: 1.64 million shares. Susquehanna purchased 174,787 shares during the second quarter.
  4. Mirae Asset Global Investment Company: 1.15 million shares. Mirae sold 1.19 million shares during the second quarter.
  5. Morgan Stanley (NYSE:MRS): 473,612 shares. Morgan Stanley bought 228,101 shares during the second quarter.

At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.

Eddie Pan specializes in institutional investments and insider trading. He writes for InvestorPlace’s Today’s Market team, which focuses on the latest news on popular stocks.


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