Hexo Corp (NASDAQ:HEXO) Stock Rockets 24% in a Week: Here is Why

Cannabis company Hexo Corp (NASDAQ:HEXO) has emerged as one of the biggest movers in the market over the course of the past week and during that period, it has managed to clock gains of as much as 24%.

Market Stats

On Tuesday, HEXO stock moved up 1.90% at $1.60 with more than 11.79 million shares, compared to its average volume of 8.75 million shares. The stock has moved within a range of $1.4500 – 1.6100  after opening the trade at $1.56.

Major Development

Yesterday, the company was in focus once again after it announced that it was going to close down as many as three production facilities located in Canada. In addition to that, the move is going to result in job losses for as many as 155 employees of the company. However, this particular move has been initiated by Hexo as part of its plans to integrate its operations following the completion of some acquisitions not too long ago.

The company announced that over the course of the following months, it will close down the operations at Stellarton in Nova Scotia and at Brantford and Kirkland Lake facilities located in Ontario. This is an ongoing trend in the cannabis industry at this point in time and some other big ticket companies like Aurora Cannabis, Canopy Growth and Tilray among others have also taken similar steps. The companies are looking to integrate their operations, cut down on employees so that there could be a faster road to profitability.

Traders Corner

HEXO stock is trading below the 200-Day and 50-Day Moving averages of $4.91 and $1.85 respectively. However, the stock is trading above the 20-Day moving average of $1.60. The stock is down 58% in the past 3- month.