Canopy Growth Corporation (NASDAQ: CGC) Is A Safe Investment Now, Isn’t It?

Canopy Growth Corporation (NASDAQ:CGC) shares, rose in value, with the stock price up by 30.42% to the previous day’s close as strong demand from buyers drove the stock to $10.89.

Actively observing the price movement in the last trading, the stock closed the session at $8.35. The value of beta (5-year monthly) was 1.63. Referring to stock’s 52-week performance, its high was $19.20, and the low was $2.76. On the whole, CGC has fluctuated by 260.60% over the past month.

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With the market capitalization of Canopy Growth Corporation currently standing at about $992.19 million, investors are eagerly awaiting this quarter’s results, scheduled for Feb 09, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.32, which is expected to increase to -$0.13 for fiscal year -$3.85 and then to about -$1.07 by fiscal year 2025. Data indicates that the EPS growth is expected to be 92.60% in 2025, while the next year’s EPS growth is forecast to be 72.20%.

Analysts have estimated the company’s revenue for the quarter at $53 million, with a low estimate of $47.76 million and a high estimate of $63.61 million. According to the average forecast, sales growth in current quarter could jump down -18.00%, compared to the corresponding quarter of last year. Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $239.26 million, representing a decrease of -19.70% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that CGC’s technical picture suggests that short-term indicators denote the stock is a 50% Buy on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a 50% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of CGC currently trading nearly 121.39% and 149.01% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 73.56, while the 7-day volatility ratio is showing 25.44% which for the 30-day chart, stands at 19.94%. Furthermore, Canopy Growth Corporation (CGC)’s beta value is 1.36, and its average true range (ATR) is 1.19.

A comparison of Canopy Growth Corporation (CGC) with its peers suggests the former has fared considerably weaker in the market. CGC showed an intraday change of 30.42% in last session, and over the past year, it shrunk by -37.77%%.

Data on historical trading for Canopy Growth Corporation (NASDAQ:CGC) indicates that the trading volumes over the past 10 days have averaged 39.33 million and over the past 3 months, they’ve averaged 8.46 million. According to company’s latest data on outstanding shares, there are 91.11 million shares outstanding.

Nearly 18.90% of Canopy Growth Corporation’s shares belong to company insiders and institutional investors own 6.74% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 5.29 million shares as on Mar 15, 2024, resulting in a short ratio of 2.03. According to the data, the short interest in Canopy Growth Corporation (CGC) stood at 5.81% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 4.73 million. The stock has risen by 113.11% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the CGC stock heading into the next quarter.