Cronos Group (NASDAQ:CRON) Downgraded to “Sell” Rating by Wall Street Zen

Cronos Group (NASDAQ:CRON) was downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Several other research analysts also recently issued reports on the stock. Canaccord Genuity Group initiated coverage on shares of Cronos Group in a report on Tuesday, January 27th. They set a “buy” rating for the company. Zacks Research downgraded shares of Cronos Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, January 6th. TD Securities began coverage on shares of Cronos Group in a research report on Tuesday. They set a “buy” rating for the company. Sanford C. Bernstein reissued a “market perform” rating and issued a $2.30 price target on shares of Cronos Group in a research note on Wednesday, January 14th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Cronos Group in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Cronos Group presently has an average rating of “Hold” and an average target price of $2.30.

Cronos Group Stock Performance

Shares of NASDAQ CRON opened at $2.67 on Friday. The company has a market cap of $1.02 billion, a price-to-earnings ratio of -266.73 and a beta of 0.80. Cronos Group has a 12 month low of $1.60 and a 12 month high of $3.43. The stock has a 50-day moving average price of $2.65 and a two-hundred day moving average price of $2.60.

Cronos Group (NASDAQ:CRON) last announced its quarterly earnings results on Thursday, February 26th. The company reported $0.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.01 by $0.01. The company had revenue of $58.39 million for the quarter, compared to analyst estimates of $38.51 million. Cronos Group had a negative net margin of 6.44% and a negative return on equity of 1.26%. On average, sell-side analysts predict that Cronos Group will post -0.03 earnings per share for the current year.

Institutional Investors Weigh In On Cronos Group

A number of hedge funds have recently made changes to their positions in CRON. Octavia Wealth Advisors LLC bought a new position in Cronos Group during the fourth quarter valued at about $28,000. Valeo Financial Advisors LLC purchased a new position in Cronos Group in the fourth quarter valued at about $30,000. Brooklyn Investment Group grew its position in shares of Cronos Group by 5,733.0% during the 3rd quarter. Brooklyn Investment Group now owns 10,966 shares of the company’s stock valued at $30,000 after acquiring an additional 10,778 shares during the period. Swiss Life Asset Management Ltd purchased a new stake in shares of Cronos Group during the 3rd quarter worth approximately $31,000. Finally, Scientech Research LLC purchased a new stake in shares of Cronos Group during the 3rd quarter worth approximately $32,000. 8.71% of the stock is currently owned by institutional investors.

Key Cronos Group News

Here are the key news stories impacting Cronos Group this week:

• Positive Sentiment: Q4 revenue and EPS beat — Net revenue rose materially and results topped Street expectations: Q4 net revenue rose ~47% year-over-year to roughly $44.5M, and the company reported $0.02 EPS versus consensus ~$0.01, beating estimates. This topline and EPS surprise is the primary driver behind supportive price action. MarketBeat Earnings
• Positive Sentiment: Record revenue streak and brand strength — Cronos reported record Q4 and FY 2025 net revenue (eight consecutive quarters of record revenue in Israel) and noted PEACE NATURALS® leadership in that market, supporting top-line durability. GlobeNewswire Release
• Positive Sentiment: Strong balance sheet — Management highlighted an industry-leading cash and short-term investments position (~$832M), which reduces near-term financing risk and supports strategic optionality (M&A, Europe expansion, product investment). Yahoo Finance Release
• Neutral Sentiment: Strategic moves in Europe amid regulatory headwinds — Management discussed expansion/strategic initiatives in Europe, but flagged regulatory challenges that could slow commercialization; this is a potential growth driver but carries execution and regulatory risk. Yahoo Earnings Highlights
• Neutral Sentiment: Short-interest reporting ambiguous — Recent short-interest data in one feed showed no meaningful, actionable change (reporting anomalies); not a clear immediate catalyst. Monitor updated short-interest releases for clarity. Short Interest Note
• Negative Sentiment: Forex drove a Q4 GAAP loss — Currency translation/FX transactions swung the company to a Q4 loss (small per-share loss) and contributed to a FY net loss (~$9.4M), which investors may penalize as recurring FX volatility or accounting charges. Seeking Alpha FX Loss Story
• Negative Sentiment: Margins and profitability metrics mixed — While net margin on reported period activity looked strong, the company still posted a negative return on equity and a small full-year loss, keeping profitability questions on the table for some investors. MarketWatch Coverage

About Cronos Group

Cronos Group Inc is a Canadian cannabinoid company dedicated to the cultivation, production and distribution of cannabis and cannabidiol (CBD) products for both medical and adult-use markets. Headquartered in Toronto, Ontario, the company manages operations that span the full cannabis value chain, including breeding, greenhouse cultivation, extraction, product formulation and packaging. Cronos Group’s business model emphasizes innovation in product development and scalability in manufacturing to meet evolving regulatory and consumer demands.

The company’s branded portfolio includes Peace Naturals, which focuses on pharmaceutical-grade medical cannabis; Spinach, a line of adult-use cannabis oils and tinctures; and Cove, a range of wellness-oriented CBD offerings.