Canopy Growth (TSE:WEED) Trading 15.4% Higher - Here's Why

Key Points

• Shares jumped ~15.4% intraday to C$1.80 (high C$1.89) on heavy trading of 5.22 million shares, about 159% above average volume.
• Analysts are mixed but the consensus is a Moderate Buy with a C$1.97 average price target; recent notes include Sanford C. Bernstein cutting its target to C$2.50, Canaccord setting C$2.00 (speculative buy), and ATB Cormark upgrading to outperform.
• Fundamentals remain weak: the company reported C($0.18) EPS, a negative ROE (-52.88%) and net margin (-117.31%), with analysts forecasting roughly -0.69 EPS for the current year and a market cap near C$778M.

Canopy Growth Corp (TSE:WEED - Get Free Report)'s stock price traded up 15.4% on Wednesday . The company traded as high as C$1.89 and last traded at C$1.80. 5,224,334 shares changed hands during mid-day trading, an increase of 159% from the average session volume of 2,019,112 shares. The stock had previously closed at C$1.56.

Wall Street Analyst Weigh In

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

Canopy Growth Stock Up 17.9%

The stock's fifty day moving average is C$1.46 and its two-hundred day moving average is 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. The company has a market capitalization of C$777.99 million, a PE ratio of -0.99, a P/E/G ratio of -0.01 and a beta of 1.45.

Canopy Growth (TSE:WEED - Get Free Report) last issued its quarterly earnings results on Friday, February 6th. The company reported C($0.18) earnings per share for the quarter. Canopy Growth had a negative return on equity of 52.88% and a negative net margin of 117.31%.The company had revenue of C$74.54 million during the quarter. As a group, analysts predict that Canopy Growth Corp will post -0.69 EPS for the current 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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