CbdMD (YCBD) stock rocketed higher on Wednesday alongside reports of an executive order to reclassify marijuana. President Donald Trump has confirmed that he’s considering signing an executive order that would loosen regulations around cannabis, changing it from a Schedule I drug to a Schedule III drug. This would open the way to new research into pot and make access to the drug easier.
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President Trump hasn’t confirmed that this executive order will be signed, or said when that would happen. However, some reports claim the President could sign the executive order as soon as today. Reports of the executive order broke over the weekend and speculation about a date for it has swirled since then.
It’s worth noting that President Trump’s executive order wouldn’t legalize marijuana. Additionally, each state will still have control over how it regulates the drug. Even so, it’s no surprise that YCBD stock has rallied on today’s news, as the company is a provider of CBD oil products derived from cannabis.
CbdMD Stock Movement Today
CbdMD stock was up 47.55% in pre-market trading on Wednesday, following a 19.17% rally yesterday. The shares have been on a positive run since the executive order reports started earlier this week. However, the stock was still down 52.33% year-to-date and 55.09% over the past 12 months.
YCBD stock trading activity was high today, as more than 17.8 million shares changed hands, compared to a three-month daily average of 7.54 million units. Investors will note that CbdMD has experienced heavy trading throughout the week alongside the cannabis executive order hype.
Is CbdMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of CbdMD is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates YCBD stock an Underperform (40) with a $1 price target. It cites “significant financial challenges, including negative earnings and cash flow issues” as reasons for this stance.
