Canopy Growth (NASDAQ:CGC) Shares Gap Down – Here’s What Happened

Canopy Growth Corporation (NASDAQ:CGC)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $1.66, but opened at $1.56. Canopy Growth shares last traded at $1.8650, with a volume of 46,918,346 shares traded.

Analysts Set New Price Targets

Several brokerages recently issued reports on CGC. Alliance Global Partners reiterated a “neutral” rating on shares of Canopy Growth in a research note on Monday. Weiss Ratings reissued a “sell (e+)” rating on shares of Canopy Growth in a research report on Wednesday, October 8th. Benchmark raised Canopy Growth from a “sell” rating to a “hold” rating in a research report on Monday, November 10th. Finally, Wall Street Zen raised Canopy Growth from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Three equities research analysts have rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Canopy Growth has a consensus rating of “Reduce”.

Canopy Growth Trading Up 11.7%

The firm has a market capitalization of $683.49 million, a PE ratio of -0.95 and a beta of 0.40. The firm has a 50 day simple moving average of $1.25 and a 200 day simple moving average of $1.29. The company has a current ratio of 5.50, a quick ratio of 4.23 and a debt-to-equity ratio of 0.31.

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

Insiders Place Their Bets

In other news, CEO Luc Mongeau purchased 27,469 shares of the company’s stock in a transaction dated Monday, September 22nd. The shares were purchased at an average cost of $1.82 per share, for a total transaction of $49,993.58. Following the purchase, the chief executive officer directly owned 812,368 shares in the company, valued at approximately $1,478,509.76. This represents a 3.50% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In the last ninety days, insiders have sold 23,075 shares of company stock worth $36,459. 0.16% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Canopy Growth

A number of hedge funds have recently modified their holdings of the business. TD Asset Management Inc increased its holdings in Canopy Growth by 58.5% in the 2nd quarter. TD Asset Management Inc now owns 178,719 shares of the company’s stock worth $220,000 after acquiring an additional 65,998 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in shares of Canopy Growth by 81.3% in the second quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company’s stock worth $41,000 after purchasing an additional 14,498 shares during the period. SBI Securities Co. Ltd. increased its stake in shares of Canopy Growth by 47.6% in the second quarter. SBI Securities Co. Ltd. now owns 532,541 shares of the company’s stock worth $650,000 after purchasing an additional 171,803 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Canopy Growth by 64.6% in the first quarter. Goldman Sachs Group Inc. now owns 330,278 shares of the company’s stock worth $301,000 after purchasing an additional 129,620 shares in the last quarter. Finally, Sullivan Wood Capital Management LLC bought a new stake in shares of Canopy Growth during the 2nd quarter valued at $215,000. Institutional investors own 3.33% of the company’s stock.

About Canopy Growth

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments.