Why Organigram Stock Lit Up Today

Investors seemed to be taking a "sell the rumor, buy the news" approach with Canadian cannabis company Organigram Holdings (NASDAQ: OGI) over the past couple of weeks. Its shares declined by 25% during the two weeks leading up to its fiscal fourth-quarter earnings report that came out Tuesday morning. But investors liked the news, and the stock popped by as much as 15% in early trading. As of 12:51 p.m. ET, Organigram shares had pulled back somewhat, but remained up by 10.7%.

For the period, which ended Aug. 31, Organigram reported strong improvements even compared to just the prior quarter. Its took a 7% market share in recreational cannabis in its fiscal Q4, a jump of 160 basis points over fiscal Q3. And the company expects that pattern to continue, noting that its market share had grown to 7.9% as of October.

Source Fool.com