Zacks Investment Research Lowers Canopy Growth (CGC) to Sell

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Canopy Growth (NYSE:CGC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “Canopy Growth Corporation is a cannabis company. It offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands. Canopy Growth Corporation is headquartered in Smiths Falls, Canada. “

CGC has been the subject of several other reports. Cann started coverage on Canopy Growth in a research note on Friday. They set a “sell” rating and a $30.00 price objective for the company. They noted that the move was a valuation call. Benchmark started coverage on Canopy Growth in a research note on Tuesday, September 25th. They set a “buy” rating for the company. Finally, Canaccord Genuity upgraded Canopy Growth from a “hold” rating to a “buy” rating in a research note on Thursday, August 16th. Two analysts have rated the stock with a sell rating and three have assigned a buy rating to the stock. Canopy Growth presently has an average rating of “Hold” and a consensus price target of $24.50.

Shares of NYSE CGC traded down $3.88 during trading hours on Tuesday, reaching $53.01. The stock had a trading volume of 37,477,600 shares, compared to its average volume of 5,106,352. The firm has a market capitalization of $11.19 billion, a price-to-earnings ratio of -165.66 and a beta of 3.17. Canopy Growth has a twelve month low of $9.37 and a twelve month high of $59.25.

Canopy Growth (NYSE:CGC) last issued its earnings results on Tuesday, August 14th. The marijuana producer reported ($0.31) EPS for the quarter, missing analysts’ consensus estimates of ($0.12) by ($0.19). The firm had revenue of $20.09 million during the quarter, compared to analyst estimates of $21.04 million. Canopy Growth had a negative net margin of 159.94% and a negative return on equity of 14.86%. On average, equities analysts anticipate that Canopy Growth will post -0.37 EPS for the current year.

Several hedge funds have recently made changes to their positions in the company. Winslow Evans & Crocker Inc. grew its holdings in shares of Canopy Growth by 83.5% during the third quarter. Winslow Evans & Crocker Inc. now owns 4,536 shares of the marijuana producer’s stock worth $222,000 after purchasing an additional 2,064 shares during the last quarter. Kiley Juergens Wealth Management LLC grew its holdings in shares of Canopy Growth by 867.2% during the third quarter. Kiley Juergens Wealth Management LLC now owns 2,418 shares of the marijuana producer’s stock worth $117,000 after purchasing an additional 2,168 shares during the last quarter. First Manhattan Co. bought a new stake in shares of Canopy Growth during the second quarter worth $115,000. Capital Investment Advisors LLC bought a new stake in shares of Canopy Growth during the third quarter worth $216,000. Finally, Bouchey Financial Group Ltd bought a new stake in shares of Canopy Growth during the third quarter worth $217,000. Institutional investors own 7.12% 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, Bedrocan Canada, CraftGrow, and Foria brand names.

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