Canopy Growth (NYSE:CGC) Downgraded to “Sell” at Zacks Investment Research

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Canopy Growth (NYSE:CGC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday, June 11th.

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

A number of other brokerages have also weighed in on CGC. Jefferies Financial Group began coverage on shares of in a research report on Monday, February 25th. They set a “buy” rating for the company. GMP Securities upgraded Canopy Growth from a “hold” rating to a “buy” rating and lifted their price target for the stock from $65.00 to $72.00 in a report on Monday, April 22nd. Bank of America set a $80.00 price target on Canopy Growth and gave the stock a “buy” rating in a report on Friday, June 7th. Piper Jaffray Companies set a $80.00 price target on Canopy Growth and gave the stock a “buy” rating in a report on Friday, April 12th. Finally, Seaport Global Securities began coverage on Weyerhaeuser in a report on Tuesday, April 2nd. They set a “buy” rating on the stock. One analyst has rated the stock with a sell rating, eight have given a hold rating and nine have given a buy rating to the company. Canopy Growth presently has an average rating of “Hold” and an average target price of $55.34.

Shares of CGC traded down $2.88 during mid-day trading on Tuesday, reaching $34.21. The stock had a trading volume of 14,116,477 shares, compared to its average volume of 7,068,426. The firm has a market capitalization of $12.83 billion, a price-to-earnings ratio of -21.52 and a beta of 3.65. Canopy Growth has a 12 month low of $24.21 and a 12 month high of $59.25. The business’s fifty day moving average price is $41.27. The company has a debt-to-equity ratio of 0.12, a quick ratio of 11.49 and a current ratio of 12.32.

Canopy Growth (NYSE:CGC) last posted its quarterly earnings results on Thursday, June 20th. The marijuana producer reported ($0.67) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.17) by ($0.50). The firm had revenue of $70.74 million during the quarter, compared to the consensus estimate of $71.06 million. Canopy Growth had a negative return on equity of 15.82% and a negative net margin of 304.03%. As a group, equities analysts anticipate that Canopy Growth will post -0.82 earnings per share for the current fiscal year.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Norges Bank acquired a new position in shares of Canopy Growth during the fourth quarter worth about $30,296,000. Janus Henderson Group PLC boosted its holdings in Canopy Growth by 358.4% in the first quarter. Janus Henderson Group PLC now owns 597,022 shares of the marijuana producer’s stock valued at $25,841,000 after purchasing an additional 466,768 shares in the last quarter. Bank of New York Mellon Corp boosted its holdings in Canopy Growth by 4,386.9% in the fourth quarter. Bank of New York Mellon Corp now owns 226,500 shares of the marijuana producer’s stock valued at $6,086,000 after purchasing an additional 221,452 shares in the last quarter. Toronto Dominion Bank boosted its holdings in Canopy Growth by 128.4% in the first quarter. Toronto Dominion Bank now owns 385,193 shares of the marijuana producer’s stock valued at $16,663,000 after purchasing an additional 216,559 shares in the last quarter. Finally, BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp acquired a new position in Canopy Growth in the first quarter valued at approximately $9,033,000. Hedge funds and other institutional investors own 8.05% of the company’s stock.

Canopy Growth Company Profile

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, CraftGrow, and Foria brand names.

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