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

Key Points

• Analysts have a consensus “Hold” rating on Canopy Growth, with one sell, two hold and two buy recommendations among five covering brokerages.
• Canopy Growth shares were up 5% to about $1.00, while the company reported a quarterly loss of $0.02 per share—better than the expected $0.04 loss—and revenue of $142.62 million, above the $58.21 million consensus estimate.
• Insiders sold 224,958 shares worth approximately $217,000 over the past three months; insiders own just 0.16% of the company, while institutional investors hold 3.33%.

Shares of Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) have received an average rating of "Hold" from the five brokerages that are covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and two have issued a buy recommendation on the company.

CGC has been the topic of several research reports. Weiss Ratings upgraded shares of Canopy Growth from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 29th. Wall Street Zen upgraded shares of Canopy Growth from a "sell" rating to a "hold" rating in a report on Saturday.

Canopy Growth Stock Up 5.0%

Shares of NASDAQ:CGC opened at $1.00 on Wednesday. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.64 and a current ratio of 3.34. Canopy Growth has a 52-week low of $0.84 and a 52-week high of $2.38. The business's 50 day simple moving average is $0.96 and its two-hundred day simple moving average is $1.04. The firm has a market cap of $448.42 million, a P/E ratio of -2.22 and a beta of 0.81.

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. Canopy Growth had a negative return on equity of 21.59% and a negative net margin of 65.33%.The firm had revenue of $142.62 million during the quarter, compared to the consensus estimate of $58.21 million. As a group, research analysts forecast that Canopy Growth will post -0.11 EPS for the current fiscal year.

Insider Activity at Canopy Growth

In other Canopy Growth news, insider Christelle Gedeon sold 58,994 shares of the firm's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total transaction of $57,224.18. Following the transaction, the insider directly owned 705,506 shares in the company, valued at approximately $684,340.82. This trade represents a 7.72% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Luc Mongeau sold 135,231 shares of Canopy Growth stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total transaction of $131,174.07. Following the transaction, the chief executive officer directly owned 1,723,913 shares in the company, valued at $1,672,195.61. This represents a 7.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 224,958 shares of company stock valued at $217,137. Company insiders own 0.16% of the company's stock.

Institutional Investors Weigh In On Canopy Growth

Institutional investors have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd grew its holdings 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 valued at $5,239,000 after acquiring an additional 4,037,281 shares in the last quarter. Millennium Management LLC boosted its position in Canopy Growth by 196.9% in the third quarter. Millennium Management LLC now owns 3,137,696 shares of the company's stock worth $4,579,000 after purchasing an additional 2,080,994 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in Canopy Growth by 19,571.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,022,197 shares of the company's stock valued at $2,305,000 after purchasing an additional 2,011,917 shares during the period. Lazard Asset Management LLC purchased a new stake in shares of Canopy Growth during the 1st quarter valued at $1,716,000. Finally, Two Sigma Investments LP bought a new stake in shares of Canopy Growth during the 3rd quarter worth $1,767,000. 3.33% of the stock is owned by institutional investors.

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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