Canopy Growth Corporation (NASDAQ:CGC) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Canopy Growth has a consensus “Hold” rating from five analysts: two buys, two holds and one sell. Wall Street Zen recently downgraded the stock to “Sell.”
• CGC shares opened at $0.97, with a market capitalization of approximately $437 million and a one-year trading range of $0.84 to $2.38. The company reported quarterly revenue of $142.6 million and an EPS loss of $0.02, exceeding analysts’ expectations.
• Company insiders sold 240,533 shares worth about $240,000 during the quarter, while institutional investors and hedge funds own 3.33% of Canopy Growth’s stock.

Shares of Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) have received a consensus rating of "Hold" from the five ratings firms that are currently covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, two have issued a hold rating and two have given a buy rating to the company.

A number of equities analysts have weighed in on CGC shares. Wall Street Zen downgraded Canopy Growth from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings upgraded Canopy Growth from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, August 26th.

Canopy Growth Stock Performance

Shares of CGC opened at $0.97 on Friday. The company has a market cap of $437.03 million, a PE ratio of -2.16 and a beta of 0.83. The firm has a 50-day moving average of $0.97 and a 200-day moving average of $1.03. Canopy Growth has a one year low of $0.84 and a one year high of $2.38. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.04 and a quick ratio of 2.39.

Canopy Growth (NASDAQ:CGC - Get Free Report) last issued its earnings results on Friday, August 7th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.04) by $0.02. Canopy Growth had a negative net margin of 65.33% and a negative return on equity of 21.91%. The company had revenue of $142.62 million for the quarter, compared to analysts' expectations of $58.21 million. As a group, equities analysts forecast that Canopy Growth will post -0.1 earnings per share for the current year.

Insider Buying and Selling at Canopy Growth

In other news, CEO Luc Mongeau sold 135,231 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $0.97, for a total value of $131,174.07. Following the transaction, the chief executive officer directly owned 1,723,913 shares of the company's stock, valued at $1,672,195.61. This represents a 7.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Christelle Gedeon sold 58,994 shares of the stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $0.97, for a total transaction of $57,224.18. Following the completion of the transaction, the insider directly owned 705,506 shares in the company, valued at $684,340.82. The trade was a 7.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 240,533 shares of company stock worth $240,032. Corporate insiders own 0.35% of the company's stock.

Institutional Investors Weigh In On Canopy Growth

Several hedge funds have recently bought and sold shares of CGC. Lazard Asset Management LLC bought a new position in shares of Canopy Growth during the first quarter worth approximately $1,716,000. Northwestern Mutual Wealth Management Co. boosted its stake in Canopy Growth by 19,571.2% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 2,022,197 shares of the company's stock valued at $2,305,000 after purchasing an additional 2,011,917 shares during the period. Royal Bank of Canada boosted its stake in Canopy Growth by 1,115.6% in the 1st quarter. Royal Bank of Canada now owns 975,967 shares of the company's stock valued at $927,000 after purchasing an additional 895,680 shares during the period. Caitong International Asset Management Co. Ltd grew its holdings in Canopy Growth by 723.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,595,330 shares of the company's stock valued at $5,239,000 after buying an additional 4,037,281 shares in the last quarter. Finally, Foundations Investment Advisors LLC acquired a new position in Canopy Growth in the 4th quarter valued at $485,000. 3.33% of the stock is currently owned by institutional investors and hedge funds.

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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