Canopy Growth (NASDAQ:CGC) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Canopy Growth (NASDAQ:CGC) from a "hold" to a "sell," while overall analyst coverage remains mixed (2 buys, 3 holds, 2 sells) giving a consensus rating of "Hold."
• Canopy Growth missed quarterly EPS expectations, reporting ($0.10) vs. ($0.03) expected, with a negative return on equity (46.85%) and a net margin of -94.39%, though revenue of $90.39 million beat estimates; analysts forecast -2.81 EPS for the year.
• The stock trades near penny levels (opened at $0.89) with a market cap of about $361 million; several hedge funds have significantly adjusted positions but institutional ownership remains low at 3.33%.

Canopy Growth (NASDAQ:CGC - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued on Sunday.

Several other research analysts have also recently issued reports on CGC. ATB Cormark Capital Markets raised Canopy Growth from a "strong sell" rating to a "moderate buy" rating in a research note on Tuesday, March 17th. Alliance Global Partners restated a "neutral" rating on shares of Canopy Growth in a research note on Saturday, February 7th. Canaccord Genuity Group began coverage on shares of Canopy Growth in a report on Friday. They issued a "buy" rating for the company. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Canopy Growth in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold".

Canopy Growth Stock Performance

CGC opened at $0.89 on Friday. The company has a current ratio of 5.34, a quick ratio of 4.26 and a debt-to-equity ratio of 0.30. The business's 50 day moving average is $1.09 and its 200-day moving average is $1.22. The stock has a market cap of $361.04 million, a PE ratio of -0.69 and a beta of 0.57. Canopy Growth has a twelve month low of $0.77 and a twelve month high of $2.38.

Canopy Growth (NASDAQ:CGC - Get Free Report) last issued its quarterly earnings data on Friday, February 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.07). Canopy Growth had a negative return on equity of 46.85% and a negative net margin of 94.39%.The business had revenue of $90.39 million during the quarter, compared to the consensus estimate of $70.96 million. On average, analysts predict that Canopy Growth will post -2.81 earnings per share for the current year.

Hedge Funds Weigh In On Canopy Growth

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Tidal Investments LLC raised its stake in shares of 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 buying an additional 1,204,530 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted 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 buying an additional 4,037,281 shares during the period. Millennium Management LLC boosted its stake in Canopy Growth by 196.9% during the third quarter. Millennium Management LLC now owns 3,137,696 shares of the company's stock valued at $4,579,000 after buying an additional 2,080,994 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in Canopy Growth by 19,571.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,022,197 shares of the company's stock worth $2,305,000 after acquiring an additional 2,011,917 shares during the period. Finally, Two Sigma Investments LP acquired a new position in Canopy Growth during the third quarter worth about $1,767,000. 3.33% of the stock is owned by institutional investors.

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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