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Village Farms International (VFF) Is Up 21.8% After Texas License Miss And Insider Sales Scrutiny – Has The Bull Case Changed?

Simply Wall St · 2d ago
  • Village Farms International recently disclosed that it was not awarded a conditional medical cannabis license in Texas’ Phase I process, which has prompted multiple law firms to investigate potential securities law violations involving the company and certain executives.
  • Adding to investor scrutiny, the President of Canadian Cannabis, Orville Bovenschen, has sold more than one hundred thousand Village Farms shares over the past year while the company continues to emphasize long-term opportunities in cannabis across Canada, Europe, and the U.S.
  • We’ll now examine how missing the Texas license, and the resulting legal and governance questions, affect Village Farms’ investment narrative.

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Village Farms International Investment Narrative Recap

To own Village Farms International today, you need to believe that its cannabis platform in Canada and international export markets can drive durable earnings, while the loss of the Texas medical license is a setback but not thesis-breaking. In the near term, the key catalyst remains execution on international cannabis growth, while the biggest risk now includes not only regulatory uncertainty but also potential legal and governance overhang from the emerging investigations.

The Texas disappointment arrives shortly after Village Farms reported Q3 2025 results with US$66.74 million in sales and US$10.22 million in net income, marking a shift to profitability. That profitability story underpins the current cannabis-focused narrative, but the gap between earnings momentum and a still-oversupplied Canadian market, plus regulatory and legal questions around Texas and the U.S., could influence how durable those earnings prove to be over time.

Yet investors should be aware that the combination of legal investigations, insider selling, and regulatory risk in key markets could...

Read the full narrative on Village Farms International (it's free!)

Village Farms International's narrative projects $304.1 million revenue and $59.8 million earnings by 2028. This requires a 3.7% yearly revenue decline and a $65.6 million earnings increase from -$5.8 million today.

Uncover how Village Farms International's forecasts yield a $4.92 fair value, a 21% upside to its current price.

Exploring Other Perspectives

VFF 1-Year Stock Price Chart
VFF 1-Year Stock Price Chart

Four fair value estimates from the Simply Wall St Community span roughly US$1.50 to US$4.92 per share, highlighting how differently investors view Village Farms. You might weigh that spread against the risk that delays or reversals in cannabis legalization in markets like the U.S. and Europe could materially slow the company’s growth ambitions and affect how those valuations play out.

Explore 4 other fair value estimates on Village Farms International - why the stock might be worth as much as 21% more than the current price!

Build Your Own Village Farms International Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.