Canopy Growth (NASDAQ:CGC) Downgraded to “Sell” Rating by Wall Street Zen

Wall Street Zen downgraded shares of Canopy Growth (NASDAQ:CGC) from a hold rating to a sell rating in a research note issued to investors on Saturday.

A number of other research analysts have also issued reports on the company. Weiss Ratings reiterated a “sell (e+)” rating on shares of Canopy Growth in a report on Wednesday, January 21st. Alliance Global Partners reaffirmed a “neutral” rating on shares of Canopy Growth in a research report on Saturday. Finally, Benchmark upgraded Canopy Growth from a “sell” rating to a “hold” rating in a research note on Monday, November 10th. Three investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Reduce”.

Canopy Growth Stock Up 1.9%

Shares of NASDAQ:CGC opened at $1.10 on Friday. The firm has a market capitalization of $405.31 million, a PE ratio of -0.85 and a beta of 0.56. Canopy Growth has a 1 year low of $0.77 and a 1 year high of $2.38. The company has a debt-to-equity ratio of 0.31, a current ratio of 5.50 and a quick ratio of 4.23. The firm’s 50-day moving average is $1.25 and its two-hundred day moving average is $1.29.

Canopy Growth (NASDAQ:CGC) last announced its quarterly earnings data on Friday, November 7th. The company reported ($0.01) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.11) by $0.10. The firm had revenue of $47.86 million during the quarter, compared to analysts’ expectations of $71.82 million. Canopy Growth had a negative net margin of 113.21% and a negative return on equity of 61.97%. Analysts predict that Canopy Growth will post -2.81 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the business. Tidal Investments LLC lifted its stake in Canopy Growth by 31.5% during the second quarter. Tidal Investments LLC now owns 5,033,793 shares of the company’s stock worth $6,141,000 after purchasing an additional 1,204,530 shares during the last quarter. Millennium Management LLC increased its stake in Canopy Growth by 196.9% in the third quarter. Millennium Management LLC now owns 3,137,696 shares of the company’s stock valued at $4,579,000 after purchasing an additional 2,080,994 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in Canopy Growth by 19,571.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,022,197 shares of the company’s stock worth $2,305,000 after purchasing an additional 2,011,917 shares in the last quarter. Two Sigma Investments LP purchased a new stake in shares of Canopy Growth during the 3rd quarter worth approximately $1,767,000. Finally, Jones Financial Companies Lllp boosted its holdings in shares of Canopy Growth by 10,308.3% in the 1st quarter. Jones Financial Companies Lllp now owns 969,533 shares of the company’s stock valued at $882,000 after buying an additional 960,218 shares in the last quarter. Hedge funds and other institutional investors own 3.33% of the company’s stock.

Canopy Growth News Roundup

Here are the key news stories impacting Canopy Growth this week:

• Positive Sentiment: Revenue beat and narrower loss — Canopy reported Q3 revenue above Street estimates and reduced its per?share loss while highlighting ongoing cost-saving measures, which supports near-term cash preservation and investor confidence. Read More.
• Positive Sentiment: Management signals positive adjusted EBITDA for fiscal 2027 and an MTL acquisition with greater European focus — guidance toward adjusted EBITDA positivity and strategic M&A give investors a multi-quarter runway to improved profitability. Read More.
• Neutral Sentiment: Earnings call transcript and highlights available — Management discussed growth priorities and cost actions on the Q3 call; read the transcript and highlights for detail on cadence of margin recovery and European execution risk. Read More. Read More.
• Neutral Sentiment: Short-interest report appears unreliable — a posted large increase shows zero shares/NaN values and days-to-cover of 0.0, so short-interest data is not meaningful right now and shouldn’t be driving sentiment. (Internal data)
• Negative Sentiment: EPS missed consensus — CGC reported a loss per share larger than estimates (reported ($0.10) vs. consensus about ($0.03)), which pressures near-term valuation and keeps skepticism about earnings quality. Read More.
• Negative Sentiment: Analyst downgrades and negative coverage — Wall Street Zen cut CGC to “Sell” and outlets like The Motley Fool have run critical pieces calling the investment poor due to prior dilution, aggressive expansion and sector headwinds; these narratives can amplify selling pressure. Read More. Read More.

Canopy Growth Company Profile

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.