Canopy Growth (TSE:WEED) Sets New 12-Month Low - Time to Sell?

Key Points

• Canopy Growth shares fell to a new 52-week low of C$1.03 and were last trading at C$1.04, down from the prior close of C$1.08.
• Analyst sentiment remains cautiously positive, with a “Moderate Buy” consensus and an average target of C$1.88, although Alliance Global Partners cut its target from C$1.80 to C$1.60.
• The company continues to report weak profitability, including a C$0.03 quarterly loss per share, a negative 73.95% net margin, and a projected full-year loss; insiders also sold shares recently.

Canopy Growth Corp (TSE:WEED - Get Free Report) shares hit a new 52-week low during trading on Wednesday. The stock traded as low as C$1.03 and last traded at C$1.04, with a volume of 555,289 shares trading hands. The stock had previously closed at C$1.08.

Wall Street Analysts Forecast Growth

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

Canopy Growth Stock Down 5.6%

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 company's fifty day moving average is C$1.33 and its 200-day moving average is C$1.39. The company has a market cap of C$431.50 million, a PE ratio of -1.52, a PEG ratio of -0.01 and a beta of 2.41.

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

Insider Activity at Canopy Growth

In related news, Director David Angelo Lazzarato sold 22,380 shares of Canopy Growth 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 completion of the sale, the director owned 108,237 shares of the company's stock, valued at C$139,625.73. The trade was a 17.13% decrease in their ownership of the stock. Insiders sold a total of 43,492 shares of company stock valued at $56,105 over the last three months. 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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