Pot Stock Grows on Plant Expansion

The marijuana company will expand its Alberta facility by more than initially planned

Canadian marijuana concern Aurora Cannabis Inc (NYSE:ACB) just announced that is will be expanding its Aurora Sun production facility in Alberta by 33% more than initially planned, in order to meet the ever-growing global demand for medical-grade marijuana. The shares of ACB are inching higher in response, up 1% at $8.89, at last check.

ACB stock has staged an impressive rebound off its four-month low of $4.58 in late-December, adding roughly 94% in that time frame. In fact, the shares just ended their best quarter since December 2017. The equity spiked to a year-to-date high of $10.32 on March 19, but has since pulled back to its 30-day moving average -- a trendline that's served as an area of support during ACB's 2019 rally.

Despite its outperformance this year, analysts are cautious on the pot stock. Two have doled out a tepid "hold" rating, and only one gives it a "strong buy." An extended rally could bring bullish analyst initiations of upgrades for Aurora Cannabis shares.

Options traders are taking a more bullish approach. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), nearly seven calls have been bought to open for every put in the past 10 trading days. Short interest is on the decline, too, down 5.2% in the last reporting period. The 73.11 million shares sold short now represent less than 8% of ACB's total available float.