Canopy Growth (TSE:WEED) Reaches New 52-Week Low - Should You Sell?

Key Points

• Canopy Growth shares hit a new 52-week low, trading as low as C$0.93 and last changing hands at C$0.94, well below their 50-day and 200-day moving averages.
• The company continues to report significant financial weakness, including a C$0.03 quarterly loss per share, C$81.17 million in revenue, a negative 73.95% net margin and analysts’ projected full-year loss of C$0.69 per share.
• Insider selling adds pressure: a director sold 22,380 shares, and insiders collectively sold 43,492 shares over the past 90 days, while insiders own just 0.21% of the company.

Canopy Growth Corp (TSE:WEED - Get Free Report) hit a new 52-week low during trading on Monday. The stock traded as low as C$0.93 and last traded at C$0.94, with a volume of 230,265 shares. The stock had previously closed at C$0.95.

Canopy Growth Price Performance

The company has a quick ratio of 2.32, a current ratio of 3.04 and a debt-to-equity ratio of 40.27. The stock's 50-day simple moving average is C$1.27 and its two-hundred day simple moving average is C$1.37. The company has a market capitalization of C$397.66 million, a price-to-earnings ratio of -1.40, a PEG ratio of -0.01 and a beta of 2.41.

Canopy Growth (TSE:WEED - Get Free Report) last released its earnings results on Friday, August 7th. The company reported C($0.03) earnings per share for the quarter. The firm had revenue of C$81.17 million during the quarter. Canopy Growth had a negative net margin of 73.95% and a negative return on equity of 29.85%. Equities research analysts predict that Canopy Growth Corp will post -0.69 earnings per share for the current year.

Insiders Place Their Bets

In other Canopy Growth news, Director David Angelo Lazzarato sold 22,380 shares of the firm's stock in a transaction on Monday, September 28th. The stock was sold at an average price of C$1.29, for a total value of C$28,870.20. Following the transaction, the director owned 108,237 shares in the company, valued at approximately C$139,625.73. This trade represents a 17.13% decrease in their position. In the last 90 days, insiders sold 43,492 shares of company stock valued at $56,105. Company insiders own 0.21% of the company's stock.

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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