Canopy Growth (TSE:WEED) Sets New 12-Month Low - Here's Why

Key Points

• Canopy Growth shares fell 6.3% to C$1.19, reaching a new 52-week low of C$1.17 and trading below both its 50-day and 200-day moving averages.
• Alliance Global Partners cut its price target from C$1.80 to C$1.60, although analysts maintain a consensus “Moderate Buy” rating with an average target of C$1.88.
• The company continues to report weak profitability, including a quarterly loss of C$0.03 per share, a negative 73.95% net margin and a projected full-year loss of C$0.69 per share; an insider also recently reduced their holdings by 17.13%.

Canopy Growth Corp (TSE:WEED - Get Free Report) shares reached a new 52-week low during trading on Thursday. The stock traded as low as C$1.17 and last traded at C$1.19, with a volume of 746527 shares changing hands. The stock had previously closed at C$1.26.

Analysts Set New Price Targets

Separately, Alliance Global Partners reduced their price objective on Canopy Growth from C$1.80 to C$1.60 in a report on Tuesday, June 16th. Two analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of C$1.88.

Canopy Growth Stock Down 6.3%

The company has a debt-to-equity ratio of 40.27, a quick ratio of 2.32 and a current ratio of 3.04. The company has a market cap of C$499.18 million, a P/E ratio of -1.76, a PEG ratio of -0.01 and a beta of 2.41. The firm's 50-day simple moving average is C$1.34 and its 200 day simple moving average is C$1.40.

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

Insider Activity at Canopy Growth

In other news, Director David Angelo Lazzarato sold 22,380 shares of the company's stock in a transaction dated 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 completion of the sale, the director directly owned 108,237 shares of the company's stock, valued at C$139,625.73. This represents a 17.13% decrease in their position. Over the last three months, insiders sold 43,492 shares of company stock valued at $56,105. Corporate insiders own 0.21% of the company's stock.

About Canopy Growth

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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