Canopy Growth (NASDAQ:CGC) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Canopy Growth from “sell” to “hold,” bringing the broader analyst consensus to “Hold,” with two Buy, three Hold and one Sell rating.
• Canopy Growth reported quarterly EPS of negative $0.02, beating the expected negative $0.04, while revenue reached $142.62 million versus a $58.21 million consensus estimate.
• Despite improving revenue and margins, the company remains unprofitable, with a negative 75.27% net margin; insiders also sold 224,958 shares over the past 90 days, and ongoing litigation presents an additional risk.

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

Separately, Weiss Ratings upgraded shares of Canopy Growth from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 29th. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of "Hold".

Canopy Growth Price Performance

Canopy Growth stock opened at $0.97 on Friday. The company has a fifty day simple moving average of $0.96 and a 200-day simple moving average of $1.04. The firm has a market capitalization of $435.01 million, a price-to-earnings ratio of -1.64 and a beta of 0.81. The company has a quick ratio of 2.64, a current ratio of 3.34 and a debt-to-equity ratio of 0.31. Canopy Growth has a 52-week low of $0.84 and a 52-week high of $2.38.

Canopy Growth (NASDAQ:CGC - Get Free Report) last posted its quarterly earnings results on Friday, August 7th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.02. The firm had revenue of $142.62 million for the quarter, compared to the consensus estimate of $58.21 million. Canopy Growth had a negative net margin of 75.27% and a negative return on equity of 26.95%. On average, equities analysts anticipate that Canopy Growth will post -0.11 EPS for the current fiscal year.

Insider Buying and Selling 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 value of $57,224.18. Following the completion of the sale, the insider directly owned 705,506 shares of the company's stock, valued at $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 available through this hyperlink. Also, CEO Luc Mongeau sold 135,231 shares of the business's stock in a transaction dated Wednesday, June 17th. The shares were 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 approximately $1,672,195.61. The trade was a 7.27% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 224,958 shares of company stock valued at $217,137. 0.16% of the stock is owned by company insiders.

Hedge Funds Weigh In On Canopy Growth

A number of institutional investors have recently bought and sold shares of the company. Tidal Investments LLC grew 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 valued at $6,141,000 after buying an additional 1,204,530 shares during the period. Caitong International Asset Management Co. Ltd increased its holdings in shares of Canopy Growth by 723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,595,330 shares of the company's stock worth $5,239,000 after buying an additional 4,037,281 shares during the last quarter. Millennium Management LLC raised its position in shares of Canopy Growth by 196.9% during the 3rd 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 during the period. Northwestern Mutual Wealth Management Co. raised its position in shares of Canopy Growth by 19,571.2% during 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 buying an additional 2,011,917 shares during the period. Finally, Lazard Asset Management LLC acquired a new position in Canopy Growth in the first quarter valued at approximately $1,716,000. 3.33% of the stock is owned by hedge funds and other institutional investors.

Key Canopy Growth News

Here are the key news stories impacting Canopy Growth this week:

• Positive Sentiment: Net revenue increased 13% year over year to C$81.2 million, exceeding the approximately C$58.9 million analyst consensus. Growth came from all major businesses: Canada medical cannabis rose 22%, Canada adult-use cannabis 10%, international cannabis 10% and Storz & Bickel 6%. Canopy Growth Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Adjusted gross margin improved to 31% from 25% a year earlier, while the adjusted EBITDA loss narrowed 59% year over year. The margin improvement supports the company’s turnaround strategy and helped drive the stock higher. Canopy Growth reports fiscal first quarter revenue growth, improved margins
• Positive Sentiment: Canopy Growth reported a quarterly loss of C$0.02 per share, better than the expected C$0.04 loss and substantially improved from a C$0.14 loss in the prior-year quarter. This represented a 50% earnings surprise. Canopy Growth Corporation Reports Q1 Loss, Tops Revenue Estimates
• Neutral Sentiment: The company remains unprofitable, with a negative net margin and negative return on equity. Investors will likely focus on whether revenue momentum and cost controls can eventually produce positive EBITDA and sustainable earnings.
• Negative Sentiment: A proposed partial settlement in a securities class-action lawsuit would resolve claims against former auditor KPMG if approved, but the case would continue against Canopy Growth and other defendants, leaving a potential legal overhang. Certification and Hearing to Approve Proposed Partial Settlement

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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