Canopy Growth (CGC) Shares Gap Down on Disappointing Earnings

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Canopy Growth Corp (NYSE:CGC) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $33.08, but opened at $34.30. Canopy Growth shares last traded at $35.96, with a volume of 343456 shares trading hands.

The marijuana producer reported ($0.76) earnings per share for the quarter, missing the consensus estimate of ($0.12) by ($0.64). Canopy Growth had a negative return on equity of 12.47% and a negative net margin of 159.94%. The business had revenue of $23.30 million during the quarter, compared to the consensus estimate of $59.10 million. Canopy Growth’s revenue for the quarter was up 32.4% compared to the same quarter last year.

Several analysts recently weighed in on the stock. Scotiabank assumed coverage on shares of Canopy Growth in a research note on Wednesday, October 17th. They issued a “hold” rating and a $61.00 price objective on the stock. Zacks Investment Research cut shares of Canopy Growth from a “hold” rating to a “sell” rating in a research note on Tuesday, October 16th. Cann assumed coverage on shares of Canopy Growth in a research note on Friday, October 12th. They issued a “sell” rating and a $30.00 price objective on the stock. They noted that the move was a valuation call. Benchmark assumed coverage on shares of Canopy Growth in a research note on Tuesday, September 25th. They issued a “buy” rating on the stock. Finally, Canaccord Genuity raised shares of 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, one has given a hold rating and three have given a buy rating to the company’s stock. The company has an average rating of “Hold” and an average price target of $36.67.

Several institutional investors have recently modified their holdings of the stock. Exane Derivatives bought a new stake in Canopy Growth during the third quarter valued at $117,000. Kiley Juergens Wealth Management LLC boosted its position in 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 valued at $117,000 after acquiring an additional 2,168 shares during the last quarter. Fifth Third Bancorp boosted its position in Canopy Growth by 349.1% during the third quarter. Fifth Third Bancorp now owns 2,470 shares of the marijuana producer’s stock valued at $120,000 after acquiring an additional 1,920 shares during the last quarter. Advisory Services Network LLC bought a new stake in Canopy Growth during the third quarter valued at $138,000. Finally, Parallel Advisors LLC bought a new stake in Canopy Growth during the third quarter valued at $140,000. 7.50% of the stock is currently owned by institutional investors.

The company has a debt-to-equity ratio of 0.50, a quick ratio of 5.53 and a current ratio of 6.84. The stock has a market cap of $8.93 billion, a P/E ratio of -110.03 and a beta of 3.70.

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About Canopy Growth (NYSE:CGC)

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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