SNDL (NASDAQ:SNDL) stock being down over 15% today, the U.S. marijuana industry received a major boost from President Joe Biden. Biden announced that he would pardon thousands of federal marijuana offenders for “simple marijuana possession” and review the drug’s classification as a Schedule 1 substance. The pardon will only apply to federal offenders, although Biden has pushed for state governors to invoke pardons as well. The President added:
There are thousands of people who were convicted for marijuana possession who may be denied employment, housing, or educational opportunities as a result. My pardon will remove this burden on them.
The executive order marks a huge step toward removing the stigma around the marijuana industry. Between 2010 and 2018, more than 6.1 million individuals were arrested for marijuana possession. In 2018, more arrests were made for marijuana crimes than all violent crimes combined. These arrests have also unfairly impacted people of color and low-income communities. Furthermore, the order will help the U.S. establish its legal marijuana market, signaling a positive catalyst for all marijuana companies.
There is no company-specific news to explain the decline in SNDL stock today. However, competitor Tilray (NASDAQ:TLRY) reported earnings that came below Wall Street’s expectations. Revenue tallied in at $153.2 million, down 9% year-over-year, while earnings per share was a loss of 13 cents. Analysts were expecting revenue of $155.9 million and an EPS loss of seven cents.
Five Investors Betting Big on SNDL Stock
Tracking institutional ownership is important, as these large investors provide liquidity and price support for stocks. During the second quarter, 152 13F filers reported owning SNDL, a decline of two funds from the previous quarter. Meanwhile, the institutional put/call ratio sits at 0.56, down from 0.58 during the first quarter. This means that funds own more call options against the company than put options. With that in mind, let’s take a look at SNDL’s top shareholders:
- ETF Managers Group: 6.31 million shares. ETF Managers sold 1.43 million shares during Q2.
- SAF Jackson: 2.57 million shares. SAF purchased its entire stake during Q2.
- Susquehanna International Group: 1.64 million shares. Susquehanna purchased 174,787 shares during Q2.
- Mirae Asset Global Investments Company: 1.15 million shares. Mirae sold 1.19 million shares during Q2.
- Morgan Stanley (NYSE:MS): 473,612 shares. Morgan Stanley purchased 228,101 shares during Q2.
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.