Canopy Growth (NASDAQ:CGC) Shares Gap Up - Here's What Happened

Key Points

• Canopy Growth gapped up premarket — after closing at $1.92 it opened at $2.10 and last traded near $2.34 on heavy volume (~31.7M), about a 19.0% move.
• Analyst sentiment remains weak: Benchmark and Wall Street Zen recently raised CGC to Hold from Sell while Weiss reiterated a Sell, leaving an average MarketBeat rating of “Reduce” (three Holds, two Sells).
• Fundamentals are mixed — the company reported EPS of ($0.01) beating estimates but revenue missed ($47.86M vs. $71.82M) with negative margins/ROE; CEO Luc Mongeau bought 27,469 shares, slightly increasing his stake despite low insider ownership (~0.16%).

Canopy Growth Corporation (NASDAQ:CGC - Get Free Report)'s stock price gapped up prior to trading on Thursday . The stock had previously closed at $1.92, but opened at $2.10. Canopy Growth shares last traded at $2.3380, with a volume of 31,691,982 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on CGC shares. Benchmark raised shares of Canopy Growth from a "sell" rating to a "hold" rating in a research note on Monday, November 10th. Weiss Ratings reissued a "sell (e+)" rating on shares of Canopy Growth in a research note on Wednesday, October 8th. Alliance Global Partners reissued a "neutral" rating on shares of Canopy Growth in a research note on Monday. Finally, Wall Street Zen raised Canopy Growth from a "sell" rating to a "hold" rating in a research note on Saturday, November 8th. Three investment analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Canopy Growth has an average rating of "Reduce".

Canopy Growth Trading Up 19.0%

The stock has a market cap of $841.93 million, a price-to-earnings ratio of -1.17 and a beta of 0.40. The company has a debt-to-equity ratio of 0.31, a current ratio of 5.50 and a quick ratio of 4.23. The business's 50 day moving average is $1.26 and its 200 day moving average is $1.30.

Canopy Growth (NASDAQ:CGC - Get Free Report) last posted its earnings results on Friday, November 7th. The company reported ($0.01) earnings per share for the quarter, topping the consensus estimate of ($0.11) by $0.10. Canopy Growth had a negative return on equity of 61.97% and a negative net margin of 113.21%.The firm had revenue of $47.86 million during the quarter, compared to analysts' expectations of $71.82 million. As a group, equities analysts expect that Canopy Growth Corporation will post -2.81 earnings per share for the current fiscal year.

Insider Buying and Selling at Canopy Growth

In other news, CEO Luc Mongeau bought 27,469 shares of the firm's stock in a transaction that occurred on Monday, September 22nd. The stock was purchased at an average cost of $1.82 per share, with a total value of $49,993.58. Following the transaction, the chief executive officer directly owned 812,368 shares in the company, valued at $1,478,509.76. This trade represents a 3.50% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Over the last ninety days, insiders sold 23,075 shares of company stock valued at $36,459. 0.16% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Canopy Growth

Institutional investors have recently modified their holdings of the business. Jones Financial Companies Lllp grew its position in Canopy Growth by 10,308.3% during the 1st quarter. Jones Financial Companies Lllp now owns 969,533 shares of the company's stock worth $882,000 after purchasing an additional 960,218 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Canopy Growth by 64.6% during the first quarter. Goldman Sachs Group Inc. now owns 330,278 shares of the company's stock worth $301,000 after buying an additional 129,620 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Canopy Growth by 81.3% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company's stock worth $41,000 after buying an additional 14,498 shares during the last quarter. Sullivan Wood Capital Management LLC acquired a new position in Canopy Growth in the 2nd quarter valued at about $215,000. Finally, TD Asset Management Inc raised its stake in Canopy Growth by 58.5% during the 2nd quarter. TD Asset Management Inc now owns 178,719 shares of the company's stock valued at $220,000 after acquiring an additional 65,998 shares during the last quarter. 3.33% of the stock is owned by institutional investors and hedge funds.

Canopy Growth Company Profile

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments.

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