How Worried Should Investors Be About Canopy Growth Corporation (CGC)

Canopy Growth Corporation (NASDAQ:CGC) does about 10.42M shares in volume on a normal day but saw 1962277 shares change hands in Monday trading. The company now has a market cap of 477.01M USD. Its current market price is $6.26, marking a decrease of -1.26% compared to the previous close of $6.34. The 52 week high reached by this stock is $19.20 whilst the lowest price level in 52 weeks is $2.76.

Canopy Growth Corporation (CGC) has a 20-day trading average at $6.86 and the current price is -67.40% off the 52-week high compared with 127.22% distance from its 52-week low. The 50-day simple moving average of the closing price is $8.42 and its 200-day simple moving average is $6.40. If we look at the stock’s price movements over the week, volatility stands at 5.54%, which increases to 5.54% over 1 month. It is also key to look at other market indicators of price movement for the stock, where we see that the relative strength index (RSI) is at 34.82 to suggest the stock is neutral.

The consensus objective for the share price is $6.95, suggesting that the stock has a potential upside of 9.93% over the period.

Canopy Growth Corporation (CGC) stock is down -2.95% over the week and -19.85% over the past month. Its price is 22.50% year-to-date and 47.36% over the past year.

The stock last released its quarterly earnings report for quarter ended 3/31/2024, with the company’s earnings per share (EPS) of -0.52 above consensus estimates by 0.75. The company’s next earnings report forecasts estimating quarterly EPS at -0.35 and -1.25 for whole year. Expected sales for next quarter are $51.8M, which analysts say will come at $226.12M for the current fiscal year and next year at $244.91M. In addition, estimates put the company’s current quarterly revenue at an average of $53.84M.

To reach the target analysts have set, the stock logically needs to grow 9.93 percent from here.

Outstanding shares total 91.12M with insiders holding 0.35% of the shares and institutional holders owning 13.76% of the company’s common stock. The company has a return on investment of -62.83% and return on equity of -81.30%. The beta has a value of 0.94. Price to book ratio is 1.54 and price to sales ratio is 1.95.