Canopy Growth Corporation (NASDAQ:CGC) Given Consensus Rating of "Hold" by Analysts

Key Points

• Analysts have given Canopy Growth a consensus rating of "Hold" based on coverage from seven firms, with the split being 2 sell, 3 hold and 2 buy ratings.
• Canopy Growth reported EPS of ($0.10), missing estimates of ($0.03) while beating revenue estimates with $90.39 million; the company has a negative net margin (~94.4%) and analysts project -2.81 EPS for the year.
• Institutional activity includes a large stake build by Sullivan Wood Capital (up 212.5% to 772,785 shares), the stock trades around $1.04 with a market cap of about $420 million and a 52-week range of $0.77–$2.38.

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

Several research analysts have recently weighed in on CGC shares. Wall Street Zen downgraded shares of Canopy Growth from a "hold" rating to a "sell" rating in a research report on Sunday, March 29th. ATB Cormark Capital Markets raised shares of Canopy Growth from a "strong sell" rating to a "moderate buy" rating in a research report on Tuesday, March 17th. Weiss Ratings reissued a "sell (e+)" rating on shares of Canopy Growth in a research report on Wednesday, January 21st. Canaccord Genuity Group started coverage on shares of Canopy Growth in a research report on Friday, March 27th. They issued a "buy" rating on the stock. Finally, Alliance Global Partners reissued a "neutral" rating on shares of Canopy Growth in a research report on Saturday, February 7th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sullivan Wood Capital Management LLC grew its position in Canopy Growth by 212.5% during the fourth quarter. Sullivan Wood Capital Management LLC now owns 772,785 shares of the company's stock valued at $881,000 after purchasing an additional 525,500 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in Canopy Growth during the third quarter valued at approximately $815,000. Insigneo Advisory Services LLC grew its position in Canopy Growth by 168.7% during the third quarter. Insigneo Advisory Services LLC now owns 43,001 shares of the company's stock valued at $63,000 after purchasing an additional 27,000 shares in the last quarter. TD Asset Management Inc grew its position in Canopy Growth by 20.3% during the third quarter. TD Asset Management Inc now owns 214,967 shares of the company's stock valued at $314,000 after purchasing an additional 36,248 shares in the last quarter. Finally, Baader Bank Aktiengesellschaft grew its position in Canopy Growth by 112.4% during the third quarter. Baader Bank Aktiengesellschaft now owns 275,090 shares of the company's stock valued at $402,000 after purchasing an additional 145,547 shares in the last quarter. 3.33% of the stock is owned by hedge funds and other institutional investors.

Canopy Growth Stock Performance

Canopy Growth stock opened at $1.04 on Thursday. The firm's 50 day simple moving average is $1.06 and its 200-day simple moving average is $1.20. The company has a market cap of $420.28 million, a P/E ratio of -0.80 and a beta of 0.60. 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 fifty-two week low of $0.77 and a fifty-two week 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 the consensus estimate of ($0.03) by ($0.07). The firm had revenue of $90.39 million during the quarter, compared to analysts' expectations of $70.96 million. Canopy Growth had a negative return on equity of 46.85% and a negative net margin of 94.39%. As a group, equities research analysts predict that Canopy Growth will post -2.81 EPS 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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