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

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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.


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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.

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