Canopy Growth (TSE:WEED) Shares Up 18.5% - What's Next?

Key Points

• Shares jumped ~18.5% on Thursday to as high as C$3.28 (last C$3.14) on a heavy surge in volume of 9.44M shares versus a ~2.97M average (≈+218%).
• Wall Street remains broadly negative with a consensus "Sell" rating, an average target of C$1.45, and recent analyst actions including ATB Capital cutting its target and Benchmark moving to "hold."
• Fundamentals remain weak: the company reported negative EPS and a net margin of about -201%, ROE of -108%, a high debt-to-equity (~120.4), and a market cap near C$1.08B.

Canopy Growth Corp (TSE:WEED - Get Free Report) shot up 18.5% during trading on Thursday . The stock traded as high as C$3.28 and last traded at C$3.14. 9,440,541 shares were traded during trading, an increase of 218% from the average session volume of 2,965,093 shares. The stock had previously closed at C$2.65.

Wall Street Analyst Weigh In

WEED has been the topic of a number of research reports. ATB Capital lowered their target price on Canopy Growth from C$1.60 to C$1.40 and set an "underperform" rating on the stock in a research report on Thursday, December 11th. Benchmark upgraded shares of Canopy Growth from a "sell" rating to a "hold" rating in a research note on Monday, November 10th. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Sell" and an average target price of C$1.45.

Canopy Growth Stock Up 18.9%

The company has a current ratio of 1.39, a quick ratio of 2.32 and a debt-to-equity ratio of 120.38. The stock has a market capitalization of C$1.08 billion, a PE ratio of -1.18, a P/E/G ratio of -0.01 and a beta of 2.45. The stock's fifty day simple moving average is C$1.77 and its 200-day simple moving average is C$1.81.

Canopy Growth (TSE:WEED - Get Free Report) last released its quarterly earnings results on Friday, November 7th. The company reported C($0.01) earnings per share for the quarter. Canopy Growth had a negative net margin of 201.27% and a negative return on equity of 108.18%. The firm had revenue of C$66.68 million for the quarter. As a group, sell-side analysts forecast that Canopy Growth Corp will post -0.69 EPS for the current fiscal year.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in growing, possession, and sale of medical cannabis in Canada. Its products include dried flowers, oils and concentrates, softgel capsules, and hemps. The company offers its products under the Tweed, Black Label, Spectrum Cannabis, DNA Genetics, Leafs By Snoop, CraftGrow, and Foria brand names.

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