The Swiss National Bank has increased its holding in Aphria Inc (TSX:APHA) (NYSE:APHA), buying an additional 33,000 in Aphria stock last quarter.
Numerous Investors Buying More Aphria Stock
According to Aphria’s most recent filings with the SEC, the Swiss National Bank increased its stake in Aphria stock by 8% to $3,132,000, which represents a 0.18% share in the company. The news comes after Aphria Inc outperformed the market in August having posted surprisingly strong fourth-quarter results. The same filings also show a number of other investors increasing their stake in the company, such as Connor Clark & Lunn Investment Management Ltd, CIBC World Markets, and AE Wealth Management.
The stock has been performing strongly in recent weeks off the back of those early August results, which saw the company post net revenue of $128.57 million CAD, an increase of nearly $55 million CAD from the previous quarter, and 10 times the figure of $12.03 million CAD reported in the same period last year. Despite the positive reports, Aphria stock is in the red this morning, trading down about 1.0% to $8.19.
Aphria Recovering from Controversy
The news that investors are increasing their holdings in Aphria stock could be indicative of the cannabis market recovering from a difficult few months that saw numerous scandals, controversies, and various other teething issues plague the budding industry. While scandals at companies such as CannTrust Holdings (TSX:TRST) (NYSE:CTST) and Canopy Growth (TSX:TRST) (NYSE:CTST) grabbed most of the headlines, Aphria was not free from fault either.
Last December, numerous reports of short-selling against the company, self-dealing involving the CEO and some of the company’s founders, and overpaying for “worthless” assets in South America caused Aphria stock to drop by over 60%. Irwin Simon was brought in at the tail end of 2018 to lead a special board committee to investigate the ongoing issues. Simon was subsequently appointed interim CEO on Valentine’s Day, and his leadership of the company has led to a successful turnaround.
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