Canopy Growth (NASDAQ:CGC) Trading Up 15.4% - Here's Why

Key Points

• Shares jumped 15.4% intraday (trading as high as $1.47 and last at $1.3150) with volume of ~16.15M shares, about 50% above the daily average.
• Analyst sentiment is mixed — 2 Buy, 3 Hold and 2 Sell ratings give the stock an average rating of "Hold", with recent downgrades and upgrades from various firms.
• Fundamentals remain strained: the company reported negative EPS (‑$0.10, missing estimates) and sizable negative margins, though revenue beat estimates and the balance sheet shows low debt (debt-to-equity 0.30) and strong liquidity (current ratio 5.34).

Shares of Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) rose 15.4% during mid-day trading on Wednesday . The stock traded as high as $1.47 and last traded at $1.3150. Approximately 16,154,095 shares changed hands during trading, an increase of 50% from the average daily volume of 10,778,372 shares. The stock had previously closed at $1.14.

Wall Street Analyst Weigh In

CGC has been the subject of several research reports. Wall Street Zen downgraded shares of Canopy Growth from a "hold" rating to a "sell" rating in a research report on Sunday, March 29th. Canaccord Genuity Group initiated coverage on shares of Canopy Growth in a research report on Friday, March 27th. They set a "buy" rating for the company. Alliance Global Partners restated a "neutral" rating on shares of Canopy Growth in a research report on Saturday, February 7th. Weiss Ratings restated a "sell (e+)" rating on shares of Canopy Growth in a research report on Monday. Finally, ATB Cormark Capital Markets upgraded shares of Canopy Growth from a "strong sell" rating to a "moderate buy" rating in a research report on Tuesday, March 17th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold".

Canopy Growth Trading Up 20.6%

The company has a debt-to-equity ratio of 0.30, a current ratio of 5.34 and a quick ratio of 4.26. The business's 50-day moving average price is $1.06 and its two-hundred day moving average price is $1.18. The company has a market capitalization of $555.67 million, a price-to-earnings ratio of -1.05 and a beta of 0.60.

Canopy Growth (NASDAQ:CGC - Get Free Report) last released its quarterly earnings results on Friday, February 6th. The company reported ($0.10) earnings per share for the quarter, missing analysts' consensus estimates 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 business had revenue of $90.39 million during the quarter, compared to analyst estimates of $70.96 million. Research analysts predict that Canopy Growth Corporation will post -0.36 earnings per share for the current year.

Institutional Investors Weigh In On Canopy Growth

Large investors have recently modified their holdings of the business. Tidal Investments LLC boosted its holdings 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 purchasing an additional 1,204,530 shares in the last quarter. Caitong International Asset Management Co. Ltd lifted its position 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 lifted 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 worth $4,579,000 after buying an additional 2,080,994 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted 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 worth $2,305,000 after buying an additional 2,011,917 shares during the last quarter. Finally, Two Sigma Investments LP bought a new stake in shares of Canopy Growth during the 3rd quarter worth $1,767,000. Institutional investors and hedge funds 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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