Specialty retail hydroponic and organic gardening stores operator GrowGeneration Corp. (NASDAQ:GRWG) recently announced that it has acquired mobile shelving systems manufacturer Mobile Media, Inc. and MMI Agriculture for $9.4 million.
Following the news, shares of the company reacted adversely and declined 6.6% on Tuesday. The stock pared its losses slightly to close at $12.95 in the extended trading session.
With annual revenues of about $14 million in 2021 and two warehouses spanning an area of about 70,000 sq. ft, the acquisition of MMI will allow GrowGeneration to enhance its mobile shelving capabilities with MMI, which is one of the leading manufacturers of such systems.
The President of GrowGeneration, Michael Salaman, said, “This key strategic acquisition is especially important, as we expand in newly legalizing East Coast states like New York, New Jersey, Pennsylvania, and the New England states Maine, Massachusetts, Connecticut, and Vermont, where indoor vertical growing will be the method of growing. MMI offers a great system and solution that is accompanied by an industry best warranty.”
The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The average GrowGeneration stock prediction of $31 implies that the stock has upside potential of 140.3% from current levels. Shares have declined about 68% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on GRWG. Further, 8.5% of portfolios tracked by TipRanks increased their exposure to GRWG stock over the past 30 days.