Canopy Growth (TSE:WEED) Stock Price Down 9.5% - Time to Sell?

Key Points

• Shares fell 9.5% to C$1.71 on Thursday with about 10.3M shares traded, roughly a 357% increase versus average volume, signaling a heavy intraday sell-off.
• Analysts are mixed but mildly positive: the consensus rating is a “Moderate Buy” with an average price target of C$1.97 (two Buys, one Hold).
• Financials show ongoing weakness — market cap C$710M, last quarter EPS of C($0.18) and projected FY EPS of -0.69, with negative net margin and ROE, although liquidity ratios are strong (current ratio 5.34, quick ratio 2.32).

Shares of Canopy Growth Corp (TSE:WEED - Get Free Report) were down 9.5% on Thursday . The stock traded as low as C$1.71 and last traded at C$1.71. Approximately 10,335,667 shares changed hands during mid-day trading, an increase of 357% from the average daily volume of 2,261,944 shares. The stock had previously closed at C$1.89.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on WEED shares. ATB Cormark Capital Markets raised Canopy Growth from a "sector perform" rating to an "outperform" rating and set a C$1.40 price objective for the company in a research report on Tuesday, March 17th. Canaccord Genuity Group set a C$2.00 price objective on Canopy Growth and gave the stock a "speculative buy" rating in a research report on Friday, March 27th. Finally, Sanford C. Bernstein lowered their price objective on Canopy Growth from C$5.30 to C$2.50 in a research report on Wednesday, January 14th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Canopy Growth currently has a consensus rating of "Moderate Buy" and an average price target of C$1.97.

Canopy Growth Price Performance

The firm has a market capitalization of C$710.34 million, a P/E ratio of -0.90, a price-to-earnings-growth ratio of -0.01 and a beta of 1.45. The business has a 50-day moving average of C$1.47 and a 200 day moving average of C$1.64. The company has a current ratio of 5.34, a quick ratio of 2.32 and a debt-to-equity ratio of 35.93.

Canopy Growth (TSE:WEED - Get Free Report) last issued its earnings results on Friday, February 6th. The company reported C($0.18) EPS for the quarter. Canopy Growth had a negative net margin of 117.31% and a negative return on equity of 52.88%. The firm had revenue of C$74.54 million during the quarter. On average, sell-side analysts predict 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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