As the cannabis industry matures, certain patterns are beginning to be established not unlike other retail industries. The one that just occurred is the first-quarter dip in sales. As companies are delivering their first-quarter results, many told investors that sales dipped after the fourth quarter, but that the second quarter was picking up.
Especially companies that have the early jump on New Jersey adult-use sales. These companies have gotten a taste of the impact these sales will have on their companies. They have a pretty good idea that the next few quarters are going to kick butt.
Stock prices for cannabis companies have been pummeled over the last year. Frustrated executives have complained about posting mostly rising revenues only to see the stocks sell-off. Expectations for a strong back half of the year and excessive valuation devastation are combining to create a perfect buying opportunity and these executives are letting their purchases do the talking.
Led by CEO Kim Rivers, a slew of Trulieve executives have bought stock lately. Here’s the rundown:
Executive Shares Bought
CEO Kim Rivers 14,000
President Steve White 7,000
CFO Alex D’Amico 1,500
CPO Kyle Landrum 1,250
CSO Tim Morey 700
CLO Eric Powers 1,700
CTO Nilyum Jhala 1,000
CIO Jason Pernell 3,500
IR Christine Hersey 1,000
CEO Nicholas Vita 25,000
Chair Jason Wild 18,000
Chair Boris Jordan 566,000 (converted or exchanged)
Despite the potential improvement in stock prices some companies have seen insider selling. Here are some of the big sellers:
East Coast Pres. Michael Jennings 137,400
HR Robin Debiase 15,000
Many traders believe that insider buying is a signal of a market bottom. These individuals are often considered to be smart money. Vickers Insider Weekly wrote in a note published on Monday, “Corporate insiders have reacted with increasing optimism, expressing confidence that historically has come in advance of notable rallies.”