Canopy Growth (NASDAQ:CGC) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Canopy Growth from “hold” to “sell,” while the broader analyst consensus remains “hold,” with two buys, two holds, and one sell rating.
• CGC shares opened at $0.97, near their 52-week low of $0.84, and the company continues to report weak profitability, including a negative net margin of 65.33% and forecast full-year EPS of -$0.10.
• Canopy Growth insiders sold 240,533 shares worth approximately $240,000 over the past 90 days, while institutional investors own a relatively small 3.33% stake.

Canopy Growth (NASDAQ:CGC - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

Separately, Weiss Ratings upgraded shares of Canopy Growth from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Wednesday, August 26th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Canopy Growth has a consensus rating of "Hold".

Canopy Growth Trading Down 0.0%

Shares of CGC stock opened at $0.97 on Friday. Canopy Growth has a fifty-two week low of $0.84 and a fifty-two week high of $2.38. The stock has a market cap of $437.03 million, a P/E ratio of -2.16 and a beta of 0.83. The business has a fifty day simple moving average of $0.97 and a 200-day simple moving average of $1.03. The company has a quick ratio of 2.39, a current ratio of 3.04 and a debt-to-equity ratio of 0.31.

Canopy Growth (NASDAQ:CGC - Get Free Report) last released its quarterly earnings results on Friday, August 7th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.02. The business had revenue of $142.62 million during the quarter, compared to the consensus estimate of $58.21 million. Canopy Growth had a negative return on equity of 21.91% and a negative net margin of 65.33%. On average, analysts forecast that Canopy Growth will post -0.1 earnings per share for the current fiscal year.

Insider Buying and Selling at Canopy Growth

In related news, insider Christelle Gedeon sold 58,994 shares of the company's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total value of $57,224.18. Following the completion of the transaction, the insider directly owned 705,506 shares in the company, valued at approximately $684,340.82. This represents a 7.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Luc Mongeau sold 135,231 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total value of $131,174.07. Following the transaction, the chief executive officer owned 1,723,913 shares in the company, valued at $1,672,195.61. This trade represents a 7.27% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 240,533 shares of company stock worth $240,032 in the last 90 days. Insiders own 0.35% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Tidal Investments LLC lifted its holdings in shares of Canopy Growth by 31.5% during the 2nd quarter. Tidal Investments LLC now owns 5,033,793 shares of the company's stock worth $6,141,000 after acquiring an additional 1,204,530 shares during the period. Caitong International Asset Management Co. Ltd grew its holdings in Canopy Growth by 723.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,595,330 shares of the company's stock valued at $5,239,000 after purchasing an additional 4,037,281 shares during the period. Millennium Management LLC grew its holdings in Canopy Growth by 196.9% in the third quarter. Millennium Management LLC now owns 3,137,696 shares of the company's stock valued at $4,579,000 after purchasing an additional 2,080,994 shares during the period. Northwestern Mutual Wealth Management Co. increased its position in Canopy Growth by 19,571.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,022,197 shares of the company's stock worth $2,305,000 after purchasing an additional 2,011,917 shares during the last quarter. Finally, Lazard Asset Management LLC acquired a new position in Canopy Growth during the first quarter worth approximately $1,716,000. Institutional investors and hedge funds own 3.33% of the company's stock.

About Canopy Growth

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.

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