Canopy Growth Corporation (NASDAQ:CGC) Receives Average Recommendation of "Hold" from Analysts

Key Points

• Canopy Growth (NASDAQ:CGC) has a consensus analyst rating of "Hold", based on six covering firms: one sell, three hold, and two buy ratings.
• The company recently reported a wider-than-expected quarterly loss of $0.17 per share, missing estimates, while revenue of $51.22 million also came in below forecasts.
• Shares were trading near $0.94, close to their 52-week low, and recent insider activity showed both the CEO and another insider selling stock.

Shares of Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) have been given a consensus recommendation of "Hold" by the six ratings firms that are currently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation and two have assigned a buy recommendation to the company.

Several analysts recently weighed in on CGC shares. Wall Street Zen downgraded Canopy Growth from a "hold" rating to a "sell" rating in a research report on Sunday, March 29th. Weiss Ratings cut Canopy Growth from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Tuesday. Finally, Canaccord Genuity Group initiated coverage on Canopy Growth in a research note on Friday, March 27th. They set a "buy" rating for the company.

Canopy Growth Stock Performance

Shares of NASDAQ:CGC opened at $0.94 on Friday. Canopy Growth has a 1 year low of $0.84 and a 1 year high of $2.38. The stock has a market capitalization of $421.47 million, a price-to-earnings ratio of -1.59 and a beta of 0.79. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.34 and a quick ratio of 2.64. The company's 50 day simple moving average is $1.00 and its 200 day simple moving average is $1.07.

Canopy Growth (NASDAQ:CGC - Get Free Report) last released its earnings results on Monday, June 15th. The company reported ($0.17) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.11). Canopy Growth had a negative return on equity of 26.95% and a negative net margin of 75.27%.The business had revenue of $51.22 million for the quarter, compared to the consensus estimate of $53.43 million. As a group, research analysts predict that Canopy Growth will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Christelle Gedeon sold 58,994 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $0.97, for a total transaction of $57,224.18. Following the completion of the transaction, the insider directly owned 705,506 shares in the company, valued at $684,340.82. This represents a 7.72% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Luc Mongeau sold 135,231 shares of the stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $0.97, for a total transaction of $131,174.07. Following the completion of the transaction, the chief executive officer directly owned 1,723,913 shares of the company's stock, valued at approximately $1,672,195.61. The trade was a 7.27% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 224,958 shares of company stock worth $217,137. 0.16% of the stock is currently owned by corporate insiders.

Institutional Trading of Canopy Growth

A number of hedge funds and other institutional investors have recently modified their holdings of CGC. Jones Financial Companies Lllp lifted its stake in shares of Canopy Growth by 10,308.3% in the 1st quarter. Jones Financial Companies Lllp now owns 969,533 shares of the company's stock valued at $882,000 after acquiring an additional 960,218 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Canopy Growth by 64.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 330,278 shares of the company's stock worth $301,000 after acquiring an additional 129,620 shares during the last quarter. Murchinson Ltd. bought a new stake in Canopy Growth during the 2nd quarter worth $183,000. Boothbay Fund Management LLC acquired a new position in Canopy Growth in the 2nd quarter worth about $30,000. Finally, Tidal Investments LLC increased its holdings in Canopy Growth by 31.5% in the 2nd quarter. Tidal Investments LLC now owns 5,033,793 shares of the company's stock worth $6,141,000 after purchasing an additional 1,204,530 shares in the last quarter. Institutional investors own 3.33% of the company's stock.

Canopy Growth Company Profile

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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