Buying Canopy Growth Corporation (CGC) Stock Is A Smart Move Today?

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Canopy Growth Corporation (NASDAQ:CGC) finished Thursday with an addition of $0.09 to close at $2.28, an upside of 4.11 percent. An average of 8,980,100 shares of common stock have been traded in the last five days. There was a fall of -$0.13 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 15,445,480 shares traded, while the 50-day average volume stands at 16,346,100.

CGC stock has decreased by -33.33% in the last month. The company shares reached their 1-month lowest point of $2.09 on 12/27/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $2.09 and a high of $9.64 in 52 weeks. It has reached a new high 1 time so far this year and lost -73.88% or -$6.45 in price. In spite of this, the price is down -76.35% from the 52-week high.


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Insider Transactions

CGC stock investors should be aware that Canopy Growth Corporation (CGC) stock had its last reported insider trading activity 204 days ago on Jun 09. In this transaction, the insider spent $5,085. Chief Accounting Officer, Stewart Thomas Carlton, disposed of 281 shares at a price of $4.98 on Jun 09. The insider now owns more than $1,399 worth of shares.

Financial Health

Its gross profit as reported stood at -$154.02 million compared to revenue of $415.12 million.

Earnings Surprise

For the three-month period that ended June 29, Canopy Growth Corporation had $303.87 million in cash and short-term investments compared to $790.61 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of -$169.9 million in the quarter, while revenues of -$1.6 billion were grew 95.01%. The analyst consensus anticipated Canopy Growth Corporation’s latest quarter earnings to come in at -$0.21 per share, but it turned out to be -$3.81, a -1,714.30% surprise. For the quarter, EBITDA amounted to -$118.79 million. Shareholders own equity worth $485.93 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Canopy Growth Corporation (CGC) price momentum. RSI 9-day as of the close on 29 December was 33.53%, suggesting the stock is Neutral, with historical volatility in this time frame at 79.01%.

As of today, CGC’s price is $2.24 -5.39% or -$0.13 from its 5-day moving average. CGC is currently trading -37.02% lower than its 20-day SMA and -30.49% lower than its 100-day SMA. However, the stock’s current price level is -11.97% below the SMA50 and -61.16% below the SMA200.

The stochastic %K and %D were 10.80% and 7.92%, respectively, and the average true range (ATR) was 0.24. With the 14-day stochastic at 17.51% and the average true range at 0.27, the RSI (14) stands at 35.83%. The stock has reached -0.14 on the 9-day MACD Oscillator while the 14-day reading was at -0.32.

Analyst Ratings

Bernstein launched coverage on Canopy Growth Corporation (NASDAQ: CGC) in its analyst report released on November 02, 2022. The firm assigned the stock an Underperform rating. The consensus rating for Canopy Growth Corporation (CGC) among analysts is Underweight. According to current brokerage recommendations, 7 brokerage firms advise that investors sell CGC, while 8 suggest investors hold. There are 2 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.

What is CGC’s price target for the next 12 months?

Analysts predict a range of price targets between $1.56 and $8.07, with a median target of $2.34. Taking a look at these predictions, the average price target given by analysts for Canopy Growth Corporation (CGC) stock is $2.90.

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