Why Is High Tide (HITI) Stock Down 23% Today? (2024)

HITI stock is experiencing heavy trading today

ByWilliam White, InvestorPlace WriterJul 19, 2022, 11:21 am EDTJuly 19, 2022

High Tide (HITI) stock is slipping on stock offering news.
This dilutes current investors’ stakes in the company.
It also has HITI seeing heavy trading today.

High Tide (NASDAQ:HITI) stock is taking a beating on Tuesday as investors react to a public stock offering from the cannabis company.

According to a press release from High Tide, it’s entered into an agreement with a collection of underwriters led by Echelon Wealth Partners. This will have those underwriters acquiring 4,310,400 units from the company.

So why is that dropping HITI stock today? First off, investors likely aren’t happy about the price of the deal, which comes in at 2.32 CAD per unit. Secondly, stock offerings typically harm shares as they dilute current shareholders’ stakes in the company.

To go along with this, the agreement signed by High Tide has each unit containing one share of HITI stock and one warrant to purchase an additional share. Those warrants have a lifespan of 60 months and are exercisable for 2.73 CAD each. There’s also an option for underwriters to acquire an additional 646,560 up to 30 days after the deal closes.

High Tide expects to raise up to 11.5 million CAD from the stock offering. The company intends to use these funds for “constructing and opening new retail cannabis store locations, the repayment of debt and for general corporate and working capital purposes.”

This news has HITI stock seeing heavy trading today. That has some 1 million shares moving as of this writing. That’s above its daily average trading volume of about 137,000 shares.

More Tuesday Stock Market News

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On the date of publication, William Whitedid not have (either directly or indirectly) any positions in the securities mentioned in this article.The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

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FAQs

Why Is High Tide (HITI) Stock Down 23% Today? ›

High Tide (HITI) stock is slipping on stock offering news. This dilutes current investors' stakes in the company. It also has HITI seeing heavy trading today.

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What is the price prediction for HITI stock? ›

HITI Stock 12 Month Forecast

Based on 3 Wall Street analysts offering 12 month price targets for High Tide in the last 3 months. The average price target is $4.69 with a high forecast of $6.26 and a low forecast of $3.31. The average price target represents a 139.29% change from the last price of $1.96.

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Should I buy high tide stock? ›

High Tide has a consensus rating of Strong Buy which is based on 3 buy ratings, 0 hold ratings and 0 sell ratings. The average price target for High Tide is C$6.33. This is based on 3 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Is High Tide undervalued? ›

The intrinsic value of one HITI stock under the Base Case scenario is 4.42 USD. Compared to the current market price of 2.04 USD, High Tide Inc is Undervalued by 54%.

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How many shares does HITI have? ›

Number of shares outstanding as of September 2024 : 78,980,553. According to High Tide's latest financial reports and stock price the company's current number of shares outstanding is 78,980,553.

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Who is HITI ownership? ›

The ownership structure of High Tide (HITI) stock is a mix of institutional, retail and individual investors. Approximately 8.13% of the company's stock is owned by Institutional Investors, 56.02% is owned by Insiders and 35.85% is owned by Public Companies and Individual Investors.

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Does HITI pay dividends? ›

Does High Tide pay dividends? No.

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Is High Tide a good company? ›

High Tide is a vibrant workplace with a friendly and relaxed environment. The team is supportive, and there's a strong focus on creating a positive customer experience. It's a great place to start if you're interested in the retail cannabis industry, with opportunities to learn and grow.

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Who is the CEO of High Tide stock? ›

Key Executives

Name	Title	Pay
Mr. Harkirat Grover	Founder, CEO, President & Executive Chairman	472.31k
Mr. Aman Sood	Chief Operating Officer	209.57k
Mr. Omar Yar Khan	Chief Communications & Public Affairs Officer	160.61k
Mr. Andreas-Alexander Palalas	Chief Marketing Officer	161.62k

5 more rows

Why is High Tide better? ›

High tide is great for those who want better water visibility and more locations to explore. The waves can also provide an added challenge. Low tide is better for those who want to get closer looks at coral reefs.

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Which stock is undervalued now? ›

Undervalued stocks

S.No.	Name	CMP Rs.
1.	Maha Rashtra Apx	170.69
2.	Mishtann Foods	15.06
3.	Vipul Ltd	34.57
4.	Visco Trade	88.03

10 more rows

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What is the most undervalued stock? ›

For September 2024, the most undervalued stocks—those with the lowest price-to-earnings (P/E) ratios for each sector—include oil and gas company Diversified Energy Company (DEC), healthcare company Roviant Sciences (ROIV), Argentinian bank Banco Macro (BMA), and Belgian international shipping company Euronav NV (CMBT).

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How can you tell if a stock is overvalued? ›

Price-earnings ratio (P/E)

A high P/E ratio could mean the stocks are overvalued. Therefore, it could be useful to compare competitor companies' P/E ratios to find out if the stocks you're looking to trade are overvalued. P/E ratio is calculated by dividing the market value per share by the earnings per share (EPS).

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What is the forecast for Hiti? ›

Based on analysts offering 12 month price targets for HITI in the last 3 months. The average price target is $4.69 with a high estimate of $6.2648791 and a low estimate of $3.3167007.

What is the most expensive stock per share of all time? ›

Berkshire Hathaway is the most expensive stock listed on U.S. exchanges. At the time of this writing, Berkshire Hathaway stock was trading at $614,530 a share — but that price is for its Class A stock (BRK. A).

What is the price of High Tide stock in the US? ›

$ 2.2171

Close	Chg	Chg %
$2.2000	-0.0200	-0.90%

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How high will Lithium America's stock go? ›

Stock Price Forecast

The 9 analysts with 12-month price forecasts for Lithium Americas stock have an average target of 6.11, with a low estimate of 2.50 and a high estimate of 15. The average target predicts an increase of 160.88% from the current stock price of 2.34.

How high will CCL stock go? ›

CCL Stock 12 Month Forecast

Based on 15 Wall Street analysts offering 12 month price targets for Carnival in the last 3 months. The average price target is $21.64 with a high forecast of $25.00 and a low forecast of $15.00. The average price target represents a 36.96% change from the last price of $15.80.

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How high will Sono stock go? ›

Analyst Price Targets

Based on analysts offering 12 month price targets for SONO in the last 3 months. The average price target is $25 with a high estimate of $25 and a low estimate of $25.

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What is the DBGI stock forecast for 2025? ›

According to analysts, DMGI price target is 1.00 CAD with a max estimate of 1.00 CAD and a min estimate of 1.00 CAD.

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