Canopy Growth Corporation (NASDAQ:CGC) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analyst consensus: Hold — Seven analysts cover CGC with a consensus "Hold" rating (2 sell, 3 hold, 2 buy), and recent divergent moves include Weiss Ratings reiterating a sell, ATB Cormark upgrading to a "moderate buy," Wall Street Zen cutting to sell, and Canaccord initiating coverage with a buy.
• Mixed results: Canopy reported Q results with EPS of ($0.10) missing estimates by $0.07 while revenue of $90.39M topped expectations, but the company remains deeply unprofitable (net margin -94.39%, negative ROE) and trades around $1.13 with a market cap of about $456.7M.

Shares of Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) have been assigned a consensus rating of "Hold" from the seven ratings firms that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating on the company.

CGC has been the topic of a number of research analyst reports. Weiss Ratings restated a "sell (e+)" rating on shares of Canopy Growth in a report on Monday, April 20th. ATB Cormark Capital Markets upgraded Canopy Growth from a "strong sell" rating to a "moderate buy" rating in a report on Tuesday, March 17th. Wall Street Zen lowered Canopy Growth from a "hold" rating to a "sell" rating in a research report on Sunday, March 29th. Alliance Global Partners reaffirmed a "neutral" rating on shares of Canopy Growth in a research report on Saturday, February 7th. Finally, Canaccord Genuity Group began coverage on Canopy Growth in a research report on Friday, March 27th. They set a "buy" rating for the company.

Institutional Investors Weigh In On Canopy Growth

Several large investors have recently added to or reduced their stakes in CGC. Two Sigma Securities LLC grew its holdings in Canopy Growth by 4.4% during the 2nd quarter. Two Sigma Securities LLC now owns 280,852 shares of the company's stock valued at $343,000 after buying an additional 11,942 shares in the last quarter. Lake Street Private Wealth LLC boosted its position in shares of Canopy Growth by 16.9% during the 4th quarter. Lake Street Private Wealth LLC now owns 90,300 shares of the company's stock valued at $103,000 after acquiring an additional 13,050 shares during the last quarter. Commonwealth Equity Services LLC lifted its position in Canopy Growth by 23.1% in the 4th quarter. Commonwealth Equity Services LLC now owns 73,739 shares of the company's stock worth $84,000 after buying an additional 13,814 shares during the last quarter. Wealth Enhancement Advisory Services LLC lifted its position in Canopy Growth by 44.9% in the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 46,845 shares of the company's stock worth $68,000 after buying an additional 14,509 shares during the last quarter. Finally, Midwest Trust Co bought a new stake in Canopy Growth in the 3rd quarter worth approximately $31,000. Hedge funds and other institutional investors own 3.33% of the company's stock.

Canopy Growth Price Performance

Shares of CGC opened at $1.13 on Monday. The company has a market capitalization of $456.66 million, a price-to-earnings ratio of -0.87 and a beta of 0.78. The business has a 50-day moving average of $1.07 and a 200-day moving average of $1.17. The company has a debt-to-equity ratio of 0.30, a current ratio of 5.34 and a quick ratio of 4.26. Canopy Growth has a 1 year low of $0.84 and a 1 year high of $2.38.

Canopy Growth (NASDAQ:CGC - Get Free Report) last released its earnings results on Friday, February 6th. The company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.07). The firm had revenue of $90.39 million for the quarter, compared to analyst estimates of $70.96 million. Canopy Growth had a negative net margin of 94.39% and a negative return on equity of 46.85%. As a group, equities research analysts anticipate that Canopy Growth will post -0.36 earnings per share for the current year.

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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