A Look At Canopy Growth Corporation (CGC) Stock Performance

Canopy Growth Corporation (NASDAQ:CGC) concluded the trading at $1.25 on Thursday, September 14 with a rise of 7.76% from its closing price on previous day.

Taking a look at stock we notice that its last check on previous day was $1.16 with its price kept floating in the range of $1.11 and $1.48 on the day. Considering stock’s 52-week price range provides that CGC hit a high price of $4.77 and saw its price falling to a low level of $0.35 during that period. Over a period of past 1-month, stock came adding 224.34% in its value.

With its current market valuation of $896.59 million. Analysts are in estimates of -$0.1 per share for company’s earnings in the current quarter and are expecting its annual EPS growth moving up to -$0.3 for 2024 with estimates of that growing to -$0.27 in next year. These estimates are suggesting current year growth of 94.30% for EPS and 10.00% growth next year.

Analysts watching the company’s growth closely have provided estimates for its revenue growth with an average revenue estimate of $75.16 million. They suggested that in the process company could generate revenue of as low as $69.13 million which could climb up to $85.96 million to hit a high. The average estimate is representing a decrease of -9.80% in sales growth from that of posted by the company in the same quarter of last year. In keeping analyst consensus estimate with, company is forecasted to be making an annual revenue of $312.98 million in 2024, which will be 5.20% more from revenue generated by the company last year.

In last 7 days, analysts came adjusting their opinions about stock’s EPS with no upward and no downward revisions, an indication which could give clearer idea about the company’s short term price movement. In contrast, when we review CGC stock’s current outlook then short term indicators are assigning it an average of Hold, while medium term indicators are categorizing the stock at an average of 50% Sell. Long term indicators are suggesting an average of Hold for it.

According to ratings assigned by 15 analysts at the scale of 1 to 5 with 1.00 representing a strong buy and 5.00 suggesting a strong sell; 8 of them are recommending Canopy Growth Corporation (CGC) as a Hold, while 1 are in view that stock is a Buy. Recommendation by 1 analysts for the stock is an Underweight while number of those analysts who rated the stock as an Overweight is 0, whereas 5 of them are considering the stock as a Sell. When taken as whole, stock gets a rating of Overweight and that encourages the investors to exploit the opportunity and build their stake up in the company.

Digging deeper we become aware of the PEG ratio of the CGC stock which is currently positioned at 0. It further provides that stock’s current price level is 92.19% away from its 20-day simple moving average and is 137.34% off its SMA50. Its relative strength index (RSI) for 14-periods is oscillating at 65.77 while volatility remained at 44.06% over the past week which changes to 21.88% when measuring it over the past month. Beta is valued at 1.70, while measure of average true range or ATR is currently at 0.20. In predicting price targets of as low as $0.34 and as high as $2.24, analysts are in agreement on assigning the stock over the next 12 months average price target of $0.82. Stock’s current price level is 72.8% above from estimated low price target while it is -79.2% below the estimated high; and even if the CGC’s share succeeded to reach the median price of $0.50, then the outlook of 60.0% could come to the excitement of the investors.

In comparing Canopy Growth Corporation (CGC)’s stock with other industry players reveals that stock’s current price change of 7.76% and that of -63.87% over the past 12 months is in competing position with that of The Simply Good Foods Company (SMPL) which saw its stock price raised by 1.44% in the last trading and went through an increase of 12.56% in past 12-month trading. Canopy Growth Corporation has a P/E ratio of 0 against that of The Simply Good Foods Company’s 27.38. On the other hand, the S&P 500 Index was up 0.84% in the last trading session while the Dow Jones Industrial closed the session higher at 0.96%.

Having a second look at Canopy Growth Corporation (NASDAQ:CGC) provides that stock’s average daily trading volume for 3 months was 46.47 million, while it jumped to 140.97 million when we calculate an average volume for past 10 days. Number of outstanding shares of the stock stood at 717.27 million.

The percentage of outstanding shares held by the insiders is 29.29% while it is 10.15% for the institutional holders. The figures also indicate that as of Aug 14, 2023, number of stock’s short shares was 39.28 million which implies a short ratio of 1.3. This shows down a 5.48% of Short Interest in company’s outstanding shares on the day. In August the standing of shares short improved as it was 44.46 million in the previous month. Subtraction of -45.89% by stock’s current price to its year-to-date value in last trading session is likely to be increasing investors’ interest in the stock as it is hinting an extended uptrend.