What happened
Shares of Denver-based hemp-derived cannabidiol (CBD) company Charlotte's Web Holdings (CWBHF +0.00%) have had an active morning Tuesday. After briefly dropping 10%, the company's over-the-counter shares bounced back, yet remained down about 3.3% as of 11:35 a.m. EDT.
So what
There is no news out of the company today, nor is there any big sector news. In fact, many other cannabis names were trading more normally today, without a big swing seen with Charlotte's Web shares. But today's move is really just continuing a monthlong downward trend in the stock. Shares are down 22.5% in the last 30 days, giving back all the gains made after the company reported its quarterly financial update on May 11.
Image source: Getty Images.
Now what
Charlotte's Web reported revenue grew 9% in its first quarter ended March 31, compared to the prior-year period. Investors applauded the fact the company's direct-to-consumer e-commerce sales jumped 14.5% over the year-ago quarter, and represented 69% of first-quarter revenue. Shares soared 32% in the two weeks following the report.
But the company also reported a net loss, and said its balance sheet included $35 million in cash, down from $53 million one year ago. On June 4, Charlotte's Web announced it filed to sell almost $50 million in shares for an at-the-market equity program. Shares have steadily retrenched since, for a total drop of 22%. Today's market move seems to be more of a continuation of that sentiment, rather than the result of any new event.
