How to Buy Sundial Growers (SNDL) Stock

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Contributor, Benzinga
June 28, 2021

(NASDAQ: SNDL), shares have been climbing back up since the lows of the month being at $0.87. SNDL Shares surged 12.1% on June 23, and over 38.9% for the month. With this movement, SNDL stock is starting to regain retail investors' attention and could quickly see this stock be at the top again.

Sundial Growers Inc. (NASDAQ: SNDL), a cannabis company headquartered in Calgary, Canada, both produces and distributes cannabis products to the medical and recreational markets.

If you are interested in this stock and investing into the Cannabis space, Learn how to buy SNDL below!

How to Buy SNDL Stock Summary:

The process for investing in Sundial Growers is the same as any other stock listed on the NASDAQ exchange. Take 3 steps before you purchase shares in a company:

  • Select a brokerage. Before you can start thinking about buying shares in SNDL, you must first open an account with a brokerage firm. Before choosing which broker to use, you need to decide on your overall investment plan.
  • Deposit funds. Once you’ve selected a brokerage, you need to deposit funds. Only deposit capital into your brokerage account that you can afford to lose. Make sure to select a brokerage that lets you trade before your funds settle if you want to get started right away.
  • Select SNDL and purchase shares. Sundial Growers Inc. is a NASDAQ-listed stock, so you should have no problem finding shares to purchase from almost all brokers. Once you select SNDL, determine how much money you want to risk, define the price you want to sell at in the future, and hit "buy!"

How to Buy Sundial Growers Inc (SNDL) Stock

Multiple catalysts have caused massive growth in the cannabis industry recently. Within this growing industry, Sundial Growers Inc. is one of the smaller companies, with a market cap just over $1 billion (although this is changing rapidly due to volatility). Recently, traders have bet on SNDL stock to rapidly increase in price as they recover from a rough 2019 IPO and look to follow in the momentum of Tilray (NASDAQ: TLRY) and others. 

Cannabis carries more risk than other stocks you can buy. Although cannabis has been federally legal in Canada since 2018, it is still considered a Schedule I narcotic in the United States. Many people bet that this will soon change now that the Democrats control the government, but there is no guarantee that this will occur. Keep these risks in mind before purchasing shares in SNDL or other cannabis companies.

Step-by-Step Guide

  1. Pick a brokerage.

    Before you can invest in any company, you must first select a brokerage service to execute your trades. Now that most brokers have moved away from a commission-based model, you can purchase SNDL shares free of charge regardless of which broker you choose.

    Define your strategy, then choose a brokerage that offers the necessary tools in order to carry out your investing strategy. Furthermore, if you feel like you need some practice before putting your hard-earned money to work, select a brokerage that offers paper trading. 

    Finally, pay attention to any promotional offers from various brokerages. You may end up with bonus funds to trade with, a free stock for you and your friends and/or numerous other potential benefits.  

  2. Decide how many shares you want.

    Now that you’ve selected a broker, you need to decide how many shares of SNDL you want to buy. Some factors to consider include your age/time horizon, your risk tolerance and your reasonable expectations for the future of the company.

    While investing more than a few percent of your funds into 1 company is extremely risky, doing this with a cannabis company presents an even greater risk. Before placing a buy order with your broker, you need to determine how much money you want to risk, when you will sell on the upside to take profits and when you will sell on the downside to protect your account.

    After you have answered these important questions, you can look for a favorable price point and purchase SNDL.

  3. Choose your order type.

    After determining how many shares of SNDL you want to buy, your job as an investor is not complete. You now need to decide which order type to use. 

    The most basic order type is the market order, which will fill your order at the current market price. This order type is best used when you are buying a stock with low volatility and trying to do it instantly. If you want to better define your risk, you should use a limit order instead, which allows you to purchase shares at a set price or lower. When trading an extremely volatile stock like Sundial Growers, it may be beneficial to employ a limit order because this prevents your buy order from being filled at a price point that results in you being down in the stock from the very beginning.

  4. Execute your trade. 

    Once you’ve determined the appropriate order type to use, all you need to do is submit your buy order to your broker and wait for your order to process. Once the order fills, your shares of SNDL should appear in your brokerage account. 

Best Online Stockbrokers

Not sure where to start your search for your first brokerage account? Consider a few of the best brokers we work with below.  

SNDL Stock History

Sundial Growers Inc. was first founded in 2006, but did not have its initial public offering (IPO) until August 6, 2019. Debuting on the street with a share price of around $13 per share, the price of SNDL stock had decreased by over 90% at the start of 2021. This year has been very kind to Sundial Growers as cannabis continues to surge as a result of legalization hopes and r/wallstreetbets's influence. Investors should, however, be prepared to weather changes in the stock’s price over time, even if there is no corresponding news to indicate a price change.

SNDL began the year priced at just under $0.50 per share, while the current price (as June 28, 2021) is just under $1. Because cannabis stocks often become part of the social conversation on social media, Sundial could experience shifts here and there. However, its overall trend is rising over time, taking into account extreme spikes or dips.

Scnreenshot from Benzinga Pro 6/28/21
Screenshot from Benzinga Pro 6/28/2021

Pros to Buying SNDL Stock

While the cannabis sector remains a volatile sector, an investment in Sundial Growers Inc. (SNDL) could result in positive factors due to:

  • Potential legalization: While Sundial’s home country of Canada legalized cannabis at the federal level in 2018, the United States has lagged behind its northern neighbors. As of 2021, 90% of Americans support legalizing cannabis for medical purposes and 68% support legalization for recreational use. As more states continue to legalize, the federal government could soon follow suit.
  • Reddit backing: With the recent rapid decrease in price of Gamestop (GME) and other r/wallstreetbets stocks, the Reddit users have adjusted their focus to cannabis stocks. Much of their focus has centered on the future merger between Tilray (TLRY) and Aphria (APHA), Sundial Growers has drastically benefitted from the craze, rising from under $0.50 per share to nearly $4 per share in the first part 2021 alone.
  • Trading volume: Since the cannabis space has heated up again in 2021, stocks like Tilray (TLRY) have commanded the most media attention. SNDL traded over 1 billion shares before noon on February 11, making it the most actively traded stocks on any of the United States exchanges!

Cons to Buying SNDL Stock

Even though the cannabis sector shows promise, you can certainly find some potential downsides to buying shares from Sundial Growers:

  • Not federally relaxed: Even though countries around the world continue to relax their cannabis laws and support for legalization, cannabis remains a Schedule I substance in the United States, alongside drugs like heroin and ecstasy. Although Joe Biden supports medical legalization and rescheduling cannabis, he supports decriminalization as opposed to full legalization. If this proves to be the actual policy pursuit of the Democrats, cannabis companies, including SNDL, could decline in value.
  • Poor financials: Despite the recent massive surge in share price, Sundial Growers still faces significant financial risk and massive dilution of shareholder value, with over 1 billion shares outstanding right now. Although the rapid rise in share price could help alleviate some of these worries, owning shares in SNDL presents this added risk of additional stock offerings.

Grow with Sundial Growers

Not many stocks are hotter right now than Sundial Growers Inc. Not only is it one of the most popular cannabis stocks, it's also one of the most actively traded stock in all of the United States.

Investing in the cannabis sector will likely continue to be volatile as 2021 rages on. Multiple factors, such as political developments, medical breakthroughs and Reddit influences can have an immediate and drastic impact on the price of SNDL stock. Keep these upside and downside risks in mind before purchasing shares in Sundial Growers.