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5 Investors Betting Big on Sundial (SNDL) Stock

  • SNDL (SNDL) stock shareholders recently voted to approve a reverse stock split.
  • The 1-for-10 reverse stock split is already in effect.
  • The company also changed its name from "Sundial Growers" to "SNDL Inc."
Marijuana plants growing in a greenhouse.
Source: Shutterstock

SNDL (NASDAQ:SNDL) stock closed lower by about 23% today following results from the company’s shareholder meeting. At the meeting, shareholders approved all resolutions.

Maybe most notably, shareholders voted to approve a 1-for-10 reverse stock split, which became effective following yesterday’s market close. About 72% of voters approved the reverse split while 28% voted against consolidation. SNDL enacted the reverse split to satisfy Nasdaq listing requirements of a minimum bid price of $1 per share. After the share consolidation, there are now 237.9 million common shares outstanding.

In addition to the reverse split, shareholders approved the company’s name change from “Sundial” to “SNDL Inc.” That change is already in effect and more details on the rebranding will be disclosed during the company’s next earnings results in early August. The number of directors at the company was also fixed at five members, with five directors nominated to their positions for the upcoming year.

Finally, the company announced that Chief Administrative Officer David Gordey has resigned, effective as of July 29.

With shares of SNDL stock down so much, investors may be wondering who’s betting big on this embattled cannabis company. Let’s dive right in.

5 Investors Betting Big on SNDL Stock

Institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q1, 152 funds disclosed owning SNDL stock, a decrease of one fund from the prior quarter. However, the number of shares held by 13F filers increased to 173.58 million during the period, up nearly 61% compared to Q4. Meanwhile, the institutional put/call ratio sits at 0.58, meaning more investors own call options on the stock than put options.

With that in mind, let’s take a look a the top five shareholders for SNDL stock:

  1. ETF Managers Group: 77.50 million shares. The firm purchased 47.99 million shares during Q1.
  2. D.E. Shaw & Company: 33.78 million shares. The acclaimed hedge fund purchased 25.64 million shares during Q1.
  3. SAF Jackson: 25.74 million shares. SAF purchased all of its shares during Q1.
  4. Susquehanna International: 14.73 million shares. Susquehanna sold 9.38 million shares during Q1. However, the fund also owns call options against 16.68 million shares.
  5. Mirae Asset Global Investments: 11.55 million shares. Mirae has already filed its Q2 13F form and sold 11.98 million shares during Q2.

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On the date of publication, Eddie Pan did not hold (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.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/5-investors-betting-big-on-sundial-sndl-stock/.

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