Canopy Growth (NASDAQ:CGC) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Canopy Growth from “hold” to “sell,” while the broader analyst consensus remains “Hold,” with two Buy, two Hold and one Sell rating.
• CGC shares opened at $0.71, near their one-year low of $0.69, and are down 3.1%; the company has a market capitalization of approximately $320 million and remains unprofitable.
• Canopy Growth exceeded quarterly expectations, reporting an adjusted loss of $0.02 per share versus the anticipated $0.04 loss and revenue of $142.62 million versus estimates of $58.21 million.

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

Separately, Weiss Ratings raised shares of Canopy Growth from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, October 2nd. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold".

Canopy Growth Stock Down 3.1%

CGC opened at $0.71 on Friday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.39 and a current ratio of 3.04. Canopy Growth has a 1 year low of $0.69 and a 1 year high of $2.38. The firm has a 50 day moving average price of $0.94 and a 200 day moving average price of $0.99. The company has a market cap of $320.35 million, a PE ratio of -1.58 and a beta of 0.78.

Canopy Growth (NASDAQ:CGC - Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.04) by $0.02. The company had revenue of $142.62 million for the quarter, compared to analyst estimates of $58.21 million. Canopy Growth had a negative return on equity of 21.91% and a negative net margin of 65.33%. Sell-side analysts expect that Canopy Growth will post -0.10 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada grew its stake in shares of Canopy Growth by 1,115.6% in the 1st quarter. Royal Bank of Canada now owns 975,967 shares of the company's stock worth $927,000 after purchasing an additional 895,680 shares during the last quarter. Lazard Asset Management LLC purchased a new stake in Canopy Growth during the first quarter valued at about $1,716,000. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of 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 worth $5,239,000 after acquiring an additional 4,037,281 shares in the last quarter. Institutional investors and hedge funds own 3.33% of the company's stock.

About Canopy Growth

Canopy Growth Corporation is a cannabis company headquartered in Smiths Falls, Ontario. Founded in 2013 as Tweed Marijuana Inc, the company adopted the Canopy Growth name in 2015 and became one of Canada's early large-scale licensed cannabis producers.

Canopy Growth develops, produces, distributes and sells cannabis products for the Canadian medical and adult-use markets. Its offerings include dried flower, pre-rolls, oils, softgels, vapes, beverages and edibles marketed under brands such as Tweed, 7ACRES, DOJA and Deep Space.

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