Last Updated: May 27, 2022
Cuaraleaf Holdings Inc. is a leading cannabis producer with an impressive revenue of $1.2 billion in 2021.
Are you already considering investing in this high-growth company? Keep reading if you want to know how to buy Curaleaf stocks.
In this article, we will discuss the company’s history and future prospects, why you should consider buying Curaleaf stocks, and how to go about it. We have covered everything you need to know, so you don’t have to look elsewhere about the world’s largest cannabis company by revenue.
About the Company
Curaleaf was founded in 2010 in New Jersey under the name PalliaTech. In 2013, investment group Sputnik bought a 35% stake in the company. The purchase was followed by a rebranding.
As of 2022, Curaleaf is headquartered in Wakefield, Massachusetts, and operates as a life science company developing full cannabis operations with manufacturing, dispensing, and medical cannabis research. It’s present in 23 states with 108 dispensaries and 5,000 employees.
Curaleaf also entered the European market in 2021 by acquiring EMMAC Life Sciences Group, which was later rebranded as Curaleaf International.
The company produces and distributes cannabis, but it also offers products such as body lotion, lip balm, massage oil, hand cream, skin cream, and eye cream.
Bloom dispensaries, Emmac Life Sciences Limited, Cura Partners Inc., and GR Companies Inc. are just a few of the many Curaleaf subsidiaries.
The company went public on the Toronto Stock Exchange on October 29, 2018. Curaleaf debuted on the Canadian Securities Exchange (CSE) under the stock symbol CURA and on the over-the-counter market under the CURLF ticker.
During the IPO, Curaleaf opened at $8.70, compared with the offer price of $11.45.
The listing followed a $400 million oversubscribed private placement. The raising was almost triple its intended $150 million offering, giving it a market value of about $4 billion in the biggest-ever reverse takeover (RTO) on the CSE.
Reverse takeovers allow companies to go public by merging with listed shell corporations. RTOs have emerged as the preferred route for most US cannabis companies seeking to go public.
Should You Buy Curaleaf Stock?
Although marijuana stocks took a beating in 2021, investors shouldn’t ignore the sector altogether. This is a developing industry that is yet to reach its heights.
Even if the Curaleaf company isn’t profitable yet, the dramatic revenue growth is getting closer to generating profits. The recent acquisition spree worked in the company’s favor in 2021.
Rising from just $19 million in 2017 to $1.2 billion in 2021, Curaleaf’s revenue shows impressive growth.
In March 2021, the company reported a 39% rise in Q4 revenue to $320 million. The figure was slightly below analysts’ expectations of $323.4 million. Net loss per share decreased to $0.04 from $0.06 in Q4 2020. Yet, it fell short of estimates of $0.02.
As mentioned above, over the past 2021, Curaleaf made just over $1.2 billion in revenue. This was almost double the $626.6 million reported a year ago.
EBITDA (earnings before interests, taxes, depreciation, and amortization) may be a concerning number for Curaleaf investors. In the third quarter, its adjusted EBITDA profit of $71.4 million was down 15% from the second quarter’s total of $84.4 million. Notably, the US economy’s growth was just 2% during the period. This was the slowest growth since the Covid-19 pandemic hit in 2020.
As we know, every sector was affected by the health crisis, so during its early stages, domestic products fell by more than 31%. Supply issues and a decline in consumer spending pushed down the economy. Since the pandemic, however, there is a strong demand for cannabis products, and the customer base is enlarging, according to Curaleaf.
Reflecting on this observation, the company’s full-year EBITDA came in at $298 million – 102% up on 2020. Also, the annual net loss narrowed by 33.7% to $20.36 million.
Curaleaf stock performance
The evolving cannabis industry and the changing regulatory landscape have triggered many to invest in Curaleaf.
As of April 2022, Curleaf’s shares on the CSE are trading at around $8.50. The stock’s 52-week high is $18.84, and the low is C$6.83. The company reached an all-time high of $21.35 on February 8, 2021.
The Curaleaf stock on the OTC market (OTCMKTS: CURLF) is trading within a 52-week range of $5.35 – $15.47. The shares peaked at $17.10 on February 12, 2021. Since then, the shares have lost around 21% of their value.
The Curaleaf market cap has also decreased by over 20% in the past year – from $6.27 billion in 2021 to $4.76 billion in 2022.
Now we will see more about the Curaleaf stock predictions and if there are any warning signs.
As of April 2022, Wall Street analysts predict that the CURLF stock could gain 190.41% within the next 12 months. The average price target is $19.31, with a low of $12.00 and a high of $32.00.
The elevation of state legalization could make the stock increase this year. The experts predict that seven US states could legalize marijuana in 2022. Curaleaf could also take advantage of its presence in the European market, which could grow at an annual rate of 29.6% through 2027 to $37 billion.
In addition to the company’s recent stock performance and analysts’ predictions, you should consider whether Curaleaf fits your investment portfolio. Would the cannabis producer help you diversify your basket of assets? The answer may be positive, but how much should you consider investing?
Many personal finance experts suggest having up to 5% of your investment portfolio in alternative assets like cannabis stocks.
How to Buy Curaleaf Stocks
Curaleaf doesn’t offer a direct stock purchase plan, but shares can be bought through a brokerage firm, including online brokerage services.
An online broker is an intermediary between a buyer and seller of a financial instrument. They also provide financial advisory and investment management services in return for a commission or fee.
Choosing the right broker can be difficult due to the wide variety of choices. Currently, US investors can only purchase the Curaleaf stock over the counter (OTC), but many popular platforms like Robinhood don’t allow buying and selling all stocks that trade over the counter. So, make sure your choice of an online broker can give you access to this particular marijuana company.
Can anyone open a trading account?
Anyone meeting the trading platform’s basic requirements can open an account. For US investors, these usually are:
- Be at least 18 years old
- Have a valid SSN
- Be a US citizen or permanent resident
- Have a valid address in the US
You need to submit proof of identity and address along with a passport size photograph. Depending on the platform, you may be asked to disclose other details, but these are the most common.
The cannabis industry is predicted to grow at an annual growth rate of 32%, reaching $197.7 billion by 2028. To benefit from this thrive, you can invest in Curaleaf stocks or consider exchange-traded funds (ETF) that focus on the whole cannabis sector.
The main benefit of purchasing ETFs is that your money is spread across a basket of stocks, and that can lower your risk compared to investing in individual stocks.
If you want to know more about this option, check out the list of nine top ETFs ranked by assets under management. Amplify Seymour Cannabis ETF currently holds positions in 33 stocks, and one of them is Curaleaf Holdings.
The cannabis industry is trendy as experts see growth potential, but that doesn’t mean that you need to invest in it. Conservative investors may prefer to steer clear of marijuana companies. But if you can tolerate higher risk, you may find a lot to like about these stocks. The industry is still in its early stages, and the market opportunities are enormous, especially as many states in the US are legalizing cannabis.
If you want to invest in Curaleaf stocks, you must be aware that there is a high risk but also a potentially high reward opportunity.
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Curaleaf shares can be bought through a brokerage firm, including online trading platforms. If you are a US investor, you can only trade the stock over the counter.
According to market analysts, Curaleaf is a Buy as of April 2022. So, it may be the right time to learn how to buy Curaleaf stock.
On March 3, 2022, Curaleaf reported the fourth quarter and fiscal 2021 results. The upcoming earning call is scheduled for May 9, 2022.
Curaleaf does not pay dividends and hasn’t revealed intentions to do so in the future.