Canopy Growth (NASDAQ:CGC) Coverage Initiated by Analysts at Canaccord Genuity Group

Key Points

• Canaccord Genuity initiated coverage of Canopy Growth (NASDAQ:CGC) with a buy rating, though the analyst consensus remains a Hold (2 Buys, 3 Holds, 2 Sells).
• Canopy reported quarterly EPS of ($0.10), missing estimates by $0.07 and showing a negative net margin of 94.39% despite $90.39M in revenue; the stock trades near $0.92 with a market cap of about $372M.
• Institutional activity included large stake increases by Caitong International and Barclays, but institutional investors collectively own only about 3.33% of the company.

Equities researchers at Canaccord Genuity Group started coverage on shares of Canopy Growth (NASDAQ:CGC - Get Free Report) in a research report issued to clients and investors on Friday. The brokerage set a "buy" rating on the stock.

A number of other research firms have also recently commented on CGC. Weiss Ratings reiterated a "sell (e+)" rating on shares of Canopy Growth in a research note on Wednesday, January 21st. Alliance Global Partners restated a "neutral" rating on shares of Canopy Growth in a research note on Saturday, February 7th. ATB Cormark Capital Markets upgraded shares of Canopy Growth from a "strong sell" rating to a "moderate buy" rating in a research note on Tuesday, March 17th. Finally, Wall Street Zen raised shares of Canopy Growth from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold".

Canopy Growth Stock Performance

CGC stock opened at $0.92 on Friday. Canopy Growth has a 1-year low of $0.77 and a 1-year high of $2.38. The business has a 50-day moving average price of $1.09 and a 200 day moving average price of $1.23. The company has a market capitalization of $371.87 million, a P/E ratio of -0.71 and a beta of 0.57. 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 (NASDAQ:CGC - Get Free Report) last announced its earnings results on Friday, February 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.07). Canopy Growth had a negative net margin of 94.39% and a negative return on equity of 46.85%. The company had revenue of $90.39 million for the quarter, compared to the consensus estimate of $70.96 million. As a group, equities research analysts forecast that Canopy Growth will post -2.81 EPS for the current fiscal year.

Institutional Trading of Canopy Growth

Hedge funds and other institutional investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd boosted its holdings in 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 purchasing an additional 4,037,281 shares during the last quarter. Virtu Financial LLC purchased a new position in shares of Canopy Growth during the 4th quarter valued at about $117,000. Mackenzie Financial Corp lifted its holdings in shares of Canopy Growth by 173.0% in the 4th quarter. Mackenzie Financial Corp now owns 305,578 shares of the company's stock valued at $354,000 after buying an additional 193,633 shares during the period. Engineers Gate Manager LP acquired a new position in shares of Canopy Growth in the 4th quarter valued at about $95,000. Finally, Barclays PLC boosted its stake in shares of Canopy Growth by 5,436.5% in the fourth quarter. Barclays PLC now owns 897,078 shares of the company's stock worth $1,023,000 after buying an additional 880,875 shares during the last quarter. Institutional investors and hedge funds own 3.33% of the company's stock.

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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