Canopy Growth (TSE:WEED) Stock Price Down 11.2% - Here's What Happened

Key Points

• Shares plunged 11.2% to C$2.06 (intraday low C$2.04) on heavy trading of ~10.59 million shares, about +239% above average volume.
• Analyst sentiment is weak with a MarketBeat consensus of "Sell" and an average price target of C$1.45, though Benchmark recently upgraded to Hold while ATB cut its target to C$1.40 and kept an Underperform rating.
• Company fundamentals remain strained: Canopy reported negative EPS and a -201.27% net margin with a high debt-to-equity ratio (~120.38) and a market cap of about C$698 million.

Shares of Canopy Growth Corp (TSE:WEED - Get Free Report) were down 11.2% on Friday . The stock traded as low as C$2.04 and last traded at C$2.06. Approximately 10,589,512 shares were traded during mid-day trading, an increase of 239% from the average daily volume of 3,127,328 shares. The stock had previously closed at C$2.32.

Analyst Upgrades and Downgrades

A number of research analysts have commented on WEED shares. Benchmark raised shares of Canopy Growth from a "sell" rating to a "hold" rating in a research report on Monday, November 10th. ATB Capital cut their price objective on shares of Canopy Growth from C$1.60 to C$1.40 and set an "underperform" rating on the stock in a report on Thursday, December 11th. One research analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, Canopy Growth currently has a consensus rating of "Sell" and an average price target of C$1.45.

Canopy Growth Stock Performance

The business's 50-day moving average price is C$1.77 and its 200-day moving average price is C$1.81. 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 cap of C$698.08 million, a PE ratio of -0.76, a P/E/G ratio of -0.01 and a beta of 2.45.

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

Canopy Growth Company Profile

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. It also offers its products through Tweed Main Street, a single online platform that enables registered patients to purchase medicinal cannabis from various producers across various brands.

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