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


Canopy Growth Corporation (NASDAQ:CGC) saw an upside of 6.51% to close Monday at $2.78 after adding $0.17 on the day. The 5-day average trading volume is 10,547,040 shares of the company’s common stock. It has gained $2.84 in the past week and touched a new high 2 times within the past 5 days. An average of 9,656,965 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 13,607,186.

CGC’s 1-month performance is 17.30% or $0.45 on its low of $2.09 reached on 12/27/22. The company’s shares have touched a 52-week low of $2.09 and high of $9.61, with the stock’s rally to the 52-week high happening on 01/18/23. YTD, CGC has achieved 20.35% or $0.47 and has reached a new high 7 times. However, the current price is down -71.07% from the 52-week high price.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


Insider Transactions

CGC stock investors last saw insider trading activity on Dec 28.Lazzarato David Angelo (Director) most recently sold 3,733 shares at $2.97 per share on Dec 28. This transaction cost the insider $11,087. Director, SCHMELING JUDY, sold 1,792 shares at a price of $2.97 on Dec 28. Then, on Dec 28, Director Yanofsky Theresa sold 3,717 shares at a price of $2.97 per share. This transaction amounted to $11,039.

Valuation Metrics

Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.81 while the price-to-book (PB) in the most recent quarter is 0.82.

The firm’s gross profit as reported stood at -$154.02 million against revenue of $415.12 million.

Earnings Surprise

For the quarterly period ending September 29 this year, Canopy Growth Corporation’s cash and short-term investments amounted to $303.87 million against total debt of $1.48 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 95.01% to -$169.9 million, while revenue of -$1.6 billion was -839.19% off the previous quarter. Analysts expected CGC to announce -$0.2 per share in earnings in its latest quarter, but it posted -$0.35, representing a -75.00% surprise. EBITDA for the quarter stood at more than -$118.79 million. CGC stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 1.36 billion, with total debt at $1.48 billion. Shareholders hold equity totaling $485.93 million.

Let’s look briefly at Canopy Growth Corporation (CGC) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 62.32% to suggest the stock is trending Neutral, with historical volatility in this time period at 58.65%.

The stock’s 5-day moving average is $2.66, reflecting a +6.51% or $0.17 change from its current price. CGC is currently trading +15.35% above its 20-day SMA, -29.80% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -13.13% and SMA200 by-62.38%.

Stochastic %K and %D was 69.74% and 70.62% and the average true range (ATR) pointed at 0.19. The RSI (14) points at 54.73%, while the 14-day stochastic is at 90.16% with the period’s ATR at 0.21. The stock’s 9-day MACD Oscillator is pointing at 0.04 and 0.11 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Canopy Growth Corporation (NASDAQ: CGC), Bernstein launched coverage with an Underperform rating. Analysts offering their rating for CGC stock have a consensus rating for the stock as Underweight. Currently, 7 brokerage advisors rate CGC as a “sell,”, while 8 advise that investors “Hold.” 2 analysts have rated the stock as underweight. 0 rates the stock as overweight while 2 have offered a “buy” rating.

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

Analysts have a consensus price target ranging from a low of $1.57 and a high of $8.07, with their median price target at $2.34. Looking at these predictions, the average price target given by analysts is for Canopy Growth Corporation (CGC) stock is $2.90.


Please enter your comment!
Please enter your name here