SNDL Stock Prediction for 2022, 2025 and Beyond: Is a Reverse Stock Split in the Offing?

SNDL Stock
SNDL Stock

Intro  

SNDL is the ticker for Sundial Growers stock, a licensed Canadian cannabis producer. After rising sharply by 84% on 8 February, its price suffered a gradual but heavy decline over that year. SNDL was one of the Reddit meme stocks that saw heavy demand in early 2021, along with other meme stocks such as GameStop and AMC.

SNDL Stock News

The current SNDL stock news of note is that the company has been granted a 180-day extension to attain the minimum price target required to maintain its Nasdaq listing. With this extension, SNDL must trade for a minimum of 10 consecutive days at $1 per share before the new deadline of 8 August 2022. This announcement brought some reprieve to the stock with hours to spare before the 7 February 2022 deadline the exchange earlier gave it.

In its response, the company says it will implement all options at its disposal to comply with the minimum bid price requirement needed to retain its Nasdaq listing. It was mentioned in an earlier version of this article that the company had an option to perform a radical 1-for-10 stock split to shore up the bid price of its stock. It would appear that this Nasdaq extension gives the company time to explore other options, reserving the potential stock split as an option of last resort.

SNDL has had issues maintaining the minimum price required to sustain its Nasdaq listing. Companies listed on the Nasdaq index have to stay above $1 for some time. 

Nasdaq’s compliance team had warned Sundial Growers before over its inability to meet the minimum pricing standards. An earlier deadline was met in February 2021 after the demand for meme stocks pushed its price to a high of $3.96 per share. Between 1-14 June 2021, the company sold $700m shares to maintain this price requirement, but it came at a considerable cost. Investors saw their holdings massively diluted as the number of outstanding shares increased seven-fold.

Having fallen way below the 1 dollar price level, Nasdaq issued a delisting warning in August 2021, giving it until 7 February 2022 to meet this requirement. The company now appears to have run out of time. The stock needs to rally at least 90% in the next two trading days or it will face delisting. A reverse stock split now appears to be the only option for the SNDL stock.

At just under 47 cents a share, SNDL needs a reverse stock split of at least 1 new stock for every 5 previously held to keep the price at $2.35. Some analysts feel the company may decide to go for a 1-for-10 consolidation (or more) to give enough room to navigate above the Nasdaq minimum limit. This would also deal with the over-bloated number of outstanding shares and keep away the Nasdaq compliance team from kicking it out of Nasdaq.

Will SNDL Stock Go Up?

Keep your eyes on the SNDL stock price today, Friday, and Monday, 7 February. You may see the stock price go up if the company implements the stock consolidation to stop the Nasdaq delisting. The Sundial growers stock forecast is that a price of at least $5 is possible if the company reissues 1 stock for every 10 previously held.

Now that the company has received a 180-day reprieve from Nasdaq, all eyes are on the board to see the response and measures it intends to take to meet the Nasdaq requirement.

SNDL stock forecast 2022

For the SNDL stock forecast 2022, there are two options.

If the company does nothing and it gets kicked out of the Nasdaq 100 index, this could be a bearish sign, and the stock could drop well below 1 cent.

The company could decide to do the reverse stock split to stay in the Nasdaq, and this will keep the price above the $5 mark. If the company’s cash flow does not improve significantly in 2022, the SNDL stock forecast 2022 is for the stock to drop below $5 and where it settles could be between $1 and $5. The RSI also shows that prices do not have the momentum yet for a big move up or a big drop. Prices found a bottom in October 2020, and since then, this bottom has held.

SNDL stock price forecast 2025

The SNDL stock forecast 2025 provides enough time for the company to have found a way to monetize its new sales channels. The pending acquisition of Alcanna (a company with several cannabis retail outlets) and the completed purchase of another retail cannabis shop operator Inner Spirit, has given the company more avenues to drive sales.

If the SNDL stock forecast 2025 is bullish, SNDL simply has to boost its sales revenues. The years 2022-2024 should allow Sundial to work on this metric. 

Success in this area could serve as a tailwind for Sundial’s stock, and we will see forecasts ending up on the bullish end. If the company finds itself unable to improve its current sales position, then it may continue to flounder going forward.

Now that the company has received a 180-day reprieve from Nasdaq, all eyes are on the board to see the response and measures it intends to take to meet the Nasdaq requirement.

The latest reprieve came on the back of recovery of some sort. The price gained 25% last fortnight after the news sparked a small stock rally. However, the rally died out, and the stock lost 13.26% last week. The company has 180 days to initiate a turnaround and maintain the
price levels at $1 or above for at least 10 consecutive trading days.

SNDL stock forecast 2030

It is difficult to provide an accurate SNDL stock forecast 2030 without watching to see its cannabis products’ sales, especially between 2022 and 2025. Therefore, the SNDL stock forecast 2030 needs to take in what happens in the next three years to determine the price in 2030.

Is SNDL a Good Stock to Buy?

After a relentless plunge in 2020, Sundial Growers’ stock went into a period of consolidation in the second half of 2021. The company has just entered into the retail cannabis business. If the product sales are stellar in 2022, this could transform the company’s earnings and lead to a recovery in price.

Furthermore, a repeat of the market hype that enveloped the stock in 2021 could also cause its share price to burst to the upside after months in the consolidation zone. However, the struggles of the retail cannabis sector could stall this move.

Two things will determine if SNDL is a good stock to buy. One is the ability of the company to use its new sales channels to drive sales, and the second is how the company manages the Nasdaq situation.

Summary

The SNDL stock forecast will need to look at how the company responds to the approaching deadline set by Nasdaq for its delisting if it fails to achieve the $1 minimum price required to maintain its status on the tech index. The company badly needs revenue, and the acquisition of two companies with established cannabis retail outlets could help with this. 

SNDL: Weekly Chart

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