16.14 0.00 (0.00%)
After hours: 7:58PM EDT
Price Crosses Moving Average
|Bid||16.10 x 1300|
|Ask||16.15 x 1200|
|Day's Range||16.05 - 16.80|
|52 Week Range||9.00 - 44.17|
|Beta (5Y Monthly)||2.49|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
What is the worst thing an investor could hear from a market share leader? According to Jefferies’ analyst Owen Bennett, it is probably the need to "understand what consumers want.”And that’s just what Canopy Growth (CGC) has said. According to the analyst, the Canadian cannabis producer’s disappointing FQ4 results indicate “things are worse than thought.”Canopy's Q4 net revenue came in at C$107.9 million, well below the C$128.9 million estimate and down by 13% from the previous quarter. The enormous overall net loss of C$1.3 billion, amounted to C$3.72 per share, far worse that the Street’s expectation of C$0.59 per share. Cue investors running to the exit door and a drop of 20% in the following trading session.Bennett recently upgraded Canopy’s rating from Sell to Hold, based on the reasoning “top line pressures were better understood,” and under the impression cost saving actions were moving the company in the right direction.Pointing out the slim bull case for Canopy rested on “increased focus on cost structure and profit delivery,” the analyst believes the turnaround appears more sluggish than anticipated as evidenced by operating expenses. Instead of improving, these increased by 17% compared to the previous quarter.Additionally, looking ahead, Canopy reduced expectations, describing FY21 as a “transition year,” and taking off the table previous forecasts for when it would achieve positive adjusted EBITDA.Along with the letdown of the report, the tone coming from Canopy’s direction has not impressed Bennett, who said, “While it said it is addressing certain headwinds with a shift into value and more high THC offerings, what really concerned us was commentary around needing to "understand what consumers want", and "servicing different segments". This is just basics and an issue we flagged over 12 months ago when initiating (Canopy having a catch all brand with no segmentation) and is something that in our view should be addressed prior to legalisation, not over a year into it, and especially from a market share leader.”To this end, Bennett reiterated a Hold and has a C$22.00 (US$16) price target on Canopy shares. (To watch Bennett’s track record, click here)Most of Wall Street echoes a neutral point of view, with TipRanks analytics exhibiting Canopy Growth as a Hold. Based on 15 analysts tracked by in the last 3 months, 2 say Buy, 10 suggest Hold, while 3 recommends Sell. Meanwhile the 12-month average price target stands at C$22.44, which aligns with where the stock is currently trading. (See Canopy Growth stock analysis on TipRanks)To find good ideas for cannabis stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
The U.S.-listed shares of Canopy Growth Corp. dropped 4.2% in premarket trading Monday, after Stifel Nicolaus analyst Andrew Carter swung to bearish from bullish in the wake of the Canada-based cannabis company's disappointing earnings report and "significant" challenges ahead. The stock had plunged 20.0% on Friday after the fiscal fourth-quarter report. Carter cut his rating to sell after being at buy for at least the past year, and cut his price target by 22% to C$18. "Canopy Growth sports the resources to deliver on its ambitions of leading growth in the global cannabis category, but the resources have yet to produce tangible evidence of on an enduring right to win in the developing category," Carter wrote in a note to clients. "We believe course correction will be difficult, expenses will remain elevated, and catalysts for driving enthusiasm will be slow to develop necessitating a further re-rating for the shares." The stock has dropped 7.5% over the past three months through Friday, while the Cannabis ETF has gained 6.4% and the S&P 500 has tacked on 3.1%.
U.S. cannabis company Acreage Holdings Inc. said Monday it has entered two funding agreements to raise up to $60 million. The first is a standby equity distribution agreement with an unnamed institutional investor for up to $60 million of its Class A subordinate voting shares, and the second is a private placement in which it issued $11 million in principal amount under a secured convertible debenture for gross proceeds of $10 million. Proceeds of both deals will be used for general corporate purposes and working capital. New York City-based Acreage has an option agreement with Canadian cannabis market leader Canopy Growth Corp. , under which Canopy will take over the company as soon as the federal ban on cannabis has been lifted. Acreage shares were not active premarket, but have fallen 44% in the year to date, while the Cannabis ETF has fallen 16% and the S&P 500 has fallen 6%.
A steep selloff on Friday in the shares of Canopy Growth Corp. increases the attractiveness of Aurora Cannabis Inc. and Aphria Inc. which both trade at a discount on enterprise value/current sales despite having similar or even better growth prospects, according to Cantor Fitzgerald. "Admittedly, WEED has $1.3Bn of cash (although down from $4.9Bn, and at an annualized free cash flow run rate of -C$1.2Bn based on the Mar qtr), but the gap seems excessive to us," analyst Pablo Zuanic wrote in a note to clients. Canopy shares tumbled after the company's March quarter sales fell short of estimates and the company pulled guidance for reaching positive EBITDA. "We think WEED's March quarter problems were company-specific; the company's rec sales before provisions were down 28% seq in the Mar quarter, while the industry grew 18%, with all the LPs that we cover posting double-digit growth," the analyst wrote. "As such, while June may be challenging for the LP industry (potentially), we believe WEED will lag again by a hefty margin." Zuanic favors Aurora and Aphria, which he rates as overweight, the equivalent of buy. The two companies had the industry's higher B2B recreational sales in the March quarter, he wrote. Aurora is well ahead of peers in domestic medical sales too, said the note. Aurora's U.S.-listed shares were down 3% premarket, while Aphria was down 1.2%. Canopy was down 3.2% and has fallen 17.6% in the year to date, while the Cannabis ETF has fallen 15.6% and the S&P 500 has fallen 6%.
Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) are two of the biggest names in the cannabis industry today. Both companies have struggled with profitability and growing their sales in recent quarters. Investors are better off buying shares of Curaleaf Holdings (OTC: CURLF), and here's why.
A formerly bullish analyst is now bearish on the popular cannabis company -- and he's warning that more pain could lie ahead for shareholders.
Despite recent troubles, Canopy Growth is optimistic its cannabis beverages can dwarf the growth of hard seltzers.
On this episode of Yahoo Finance Presents, Canopy Growth CEO David Klein sat down with Yahoo Finance's Zack Guzman to talk about their recent strategic review, new products, and the potential for future expansion into the U.S. market.
Shares of Canopy growth (CGC) are trading 30% lower since its latest quarterly results last week. However one analyst sees share as undervalued for the Canadian cannabis company which has shifted from medical to more recreational sales when that market was legalized in Canada almost two years ago. “Although we expect the medical market to shrink because of recreational legalization, we forecast more than 10% average annual growth for the entire Canadian market through 2030, driven by the conversion of black-market consumers into the legal market and new cannabis consumers,” analyst Kristoffer Inton wrote in a note to investors.
Canopy Growth stock tanked more than 20% on Friday after the marijuana grower reported a loss in its fiscal year and withdrew financial forecasts. The stock is down again on Monday.
Canadian cannabis stocks tumbled Friday after Canopy Growth Corp (NYSE: CGC) reported a significant miss for its March quarter sales and withdrew its outlook for reaching positive EBITDA. Canopy also expressed concern over the company's June quarter prospects.The problems witnessed by Canopy Growth in the March quarter seem to be company-specific, and the broader sell-off among the group makes Aphria Inc (NYSE: APHA) and Aurora Cannabis Inc (NYSE: ACB) even more attractive, according to Cantor Fitzgerald.The Aphria, Aurora Analyst Pablo Zuanic maintained Overweight ratings on both Aphria and Aurora Cannabis, with price targets of CA$9.55 ($6.97) and CA$27.00 ($19.71), respectively.The Cannabis Market Thesis While Canopy Growth reported a 28% sequential decline in recreational sales before provisions, the industry witnessed 18% growth in the March quarter, Zuanic said in the note. (See his track record here.) Although June could be challenging for the industry, other companies will likely perform much better than Canopy Growth, the analyst said. U.S. data indicated robust demand during the pandemic, he said. Friday's sell-off increases the attractiveness of Aphria and Aurora Cannabis, as both companies are performing better than Canopy Growth in key metrics like scale, sales growth, average pricing and Cannabis 2.0 products; they have better profit margin trajectories; and their stocks currently trade at "hefty discounts," Zuanic said. APHA, ACB Price Action Shares of Aurora Cannabis were down 1.28% at $13.90 at the time of publication Monday, while Aphria's stock was up 4.14% at $4.40. View more earnings on ACBRelated Links: The Week In Cannabis: A Mixed Bag Leads Marijuana Stocks To UnderperformCantor Fitzgerald Says Aurora Cannabis Sell-Off Creates Entry PointPhoto courtesy of Aurora Cannabis. Latest Ratings for ACB DateFirmActionFromTo May 2020JefferiesDowngradesHoldUnderperform May 2020Cantor FitzgeraldMaintainsOverweight May 2020CIBCMaintainsNeutral View More Analyst Ratings for ACB View the Latest Analyst Ratings See more from Benzinga * Aphria, Aurora Among Top Performers As Canadian Cannabis Sales Spike * Canopy Growth Set To Become Cannabis Sector Leader, Says BofA * Cantor Cuts Canopy Growth Target After Warrants Exercise(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Canopy Growth (NYSE: CGC) shares aren't anywhere close to their levels in late 2018 and early 2019 as the Canadian adult-use recreational marijuana market was first launching. If Canopy can remain a top leader in the industry, it could be able to deliver more impressive gains in the future than it has in the past. There's no question that Canopy has plenty of growth opportunities.
Canopy Growth Corp. reported its second billion-dollar loss Friday, as the company remains mired in a restructuring effort that it started in December.
After Aurora Cannabis (NYSE: ACB) posted surprisingly positive Q3 results last week, some might have thought that Canopy Growth (NYSE: CGC) would have good news in its quarterly update this week. Canopy announced its fiscal 2020 fourth-quarter and full-year results on Friday and the marijuana stock fell more than 20% in intraday trading, which gives you an idea of how the company performed in Q4. Here are 10 things to hate about Canopy Growth's Q4 update, along with a couple of things to love.
CGC earnings call for the period ending March 31, 2020.
A pair of marijuana stocks, Tilray (NASDAQ: TLRY) and OrganiGram Holdings (NASDAQ: OGI), both dropped notably in price on Friday (by 5.2% and 7%, respectively). The culprit seems to be another weed title, Canopy Growth (NYSE: CGC), which earlier in the day published an awful quarterly earnings release. Canopy Growth is a leading company in the sector.
Jim Cramer discusses the stock market today including Trump's press conference discussing China, Marvell's excellent quarter and the future of cannabis stocks.
After a bumpy couple of days, the S&P 500 traded somewhat quietly on Friday, after bouncing off the 3,000 area and 200-day moving average. With that in mind, let's look at a few top stock trades for next week. Top Stock Trades for Monday No. 1: Zscaler (ZS) Click to EnlargeSource: Chart courtesy of StockCharts.com Zscaler (NASDAQ:ZS) shares are ripping higher after better-than-expected earnings.Coming into the event, shares were trading higher, grinding up in a modest channel (blue lines) and maintaining about the 20-day moving average. However, shares were struggling to clear the $77.50 level.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat is, until earnings. The stock opened up near prior 2019 resistance around $85, before surging up to $98 as shares ended the day Friday up 29%. From here, I wouldn't be surprised to see $100 hit, with the 123.6% extension up near $101.On the downside, however, I want to see prior resistance hold as support at $85 -- along with the prior high near $90. Top Stock Trades for Monday No. 2: Canopy Growth (CGC) Click to EnlargeSource: Chart courtesy of StockCharts.com Canopy Growth (NYSE:CGC) stock is getting crushed on Friday, down just about 20% after disappointing quarterly results.The move comes after last week's breakout and this week's continuation above the 200-day moving average and $20 mark. So, what now?As you can see on the chart above, CGC stock tried to rally back over the $18.25-ish area, which was the April high and a significant level dating back to October 2019. However, shares were rejected on this move.Bulls need to see this level reclaimed. If it can, it puts a gap-fill back up toward $20 in play, as well as the 200-day moving average. On the downside, I want to see the 50-day moving average and the backside of prior downtrend resistance (blue line) hold as support. Below puts $14 on the table. Top Stock Trades for Monday No. 3: Occidental Petroleum (OXY) Click to EnlargeSource: Chart courtesy of StockCharts.com Occidental Petroleum (NYSE:OXY) isn't looking too hot, down 5% on Friday. Shares were unable to push higher, most recently failing at $15 before rolling over.However, the lack of bullishness has been a multi-month process. Shares failed to reclaim the 23.6% retracement, before forming a series of lower highs. Now, it's losing the 50-day moving average, as well as uptrend support.From here, bulls need to see the $12.75 area hold as support. Below $12.50 and a retest of $10 isn't out of the question.Given how poorly the stock has done amid the big rebound in the S&P 500 and crude oil, traders may be better off looking elsewhere than OXY. I mean sheesh, crude just had its best month ever and Occidental is down about 20% for May.Shares do not look attractive amid the current setup. Top Stock Trades for Monday No. 4: Uber (UBER) Click to EnlargeSource: Chart courtesy of StockCharts.com Shares of Uber (NYSE:UBER) have made an impressive climb from the March lows. The stock hit $14 in March and continues knocking on the 78.6% retracement just below $36.The firm is in talks with GrubHub (NYSE:GRUB) to hammer out an all-stock deal. If the stock reacts bearishly to the news, we have to consider a pullback. In this case, look to the $31 area, where Uber will find its 200-day moving average and uptrend support (blue line).On a breakout over the 78.6% retracement, look for a possible gap-fill up toward $40.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post 4 Top Stock Trades for Monday: ZS, CGC, OXY, UBER appeared first on InvestorPlace.
Canopy Growth earnings were much worse than views. The Canadian marijuana producer said it'll now focus on "select priority markets." Marijuana stocks fell.
Shares of Canada's leading cannabis producer, Canopy Growth (NYSE:CGC), plunged Friday after the company reported dismal fourth-quarter numbers which fell far short of expectations. CGC stock is down more than 18%.Source: Shutterstock The steep drop in Canopy Growth stock makes complete sense. The quarter was bad. And it was totally unexpected.While cannabis peers like Cronos (NASDAQ:CRON) and Aurora Cannabis (NYSE:ACB) reported strong numbers over the past month -- which broadly included accelerating revenue growth and narrowing losses -- Canopy's fourth-quarter numbers were the exact opposite.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRevenues dropped 13% sequentially, and its adjusted earnings before interest, taxes, deprecation and amortization (EBITDA) loss expanded from $90 million to over $100 million.In other words, analysts expected Canopy to report good numbers. With that in mind, CGC stock rallied more than 40% in May.But Canopy reported bad numbers … so it makes complete sense that CGC stock plunged 20%.Having said all that, it also makes complete sense to buy the post-earnings dip in CGC stock. Here's why. Near-Term Pain, Long-Term GainAlthough Canopy's fourth-quarter numbers were not good, this looks like a situation of near-term pain, long-term gain.That is, Canopy's new management team is taking all the right steps to position Canopy for profitable, long-term growth -- and those steps are weighing on near-term growth.Specifically, management is reducing Canopy's global reach in an effort to streamline geographic focus in America, Germany and Canada -- the three biggest and most developed commercial cannabis markets. The company is also curbing production, downsizing the product portfolio and pivoting toward a data-driven, consumer-first approach.In other words, Canopy is going from "growing faster" to "growing smarter."Naturally, that transition weighs on near-term growth. But it also positions the company to launch better products, grow margins and expand its dominance in the world's most important cannabis markets.So, investors shouldn't fret the bad earnings report too much. It's just the collateral damage of Canopy going from an aggressive, unprofitable company, to a strategic, profitable company.Long term, the future here remains very promising. Big Picture Trends Remain FavorableZooming out, Canopy still projects as the global leader in a cannabis market that will measure $50-plus billion one day.The company still has the most resources of any cannabis company with nearly 2 billion CAD on the balance sheet. Constellation Brands (NYSE:STZ) also just injected another 250 million CAD into Canopy. This industry-leading cash pile will enable Canopy to make more growth-oriented investments than its peers, which ultimately positions the company to not only sustain, but potentially expand its leadership position in the global cannabis market.Also, as stated earlier, management is taking all the right steps to ensure sustained leadership, too. By strategically centering the company around its biggest growth markets, leaning into data to launch new products and cutting expenses to grow profitably, management is doing exactly what needs to be done to help Canopy turn into a very big company one day.And, perhaps most importantly, the "cannabis boom" is still alive and well. Global legal cannabis sales rose 45% in 2019. They are expected to rise roughly 40% in 2020, 30% in 2021 and 25% in 2022, behind more widespread legalization, broader retail distribution and new products.All in all, the big-picture trends supporting Canopy Growth remain positive. As such, while the post-earnings drop in CGC makes complete sense, so does a big rebound in the coming months and years. Bottom Line on CGC StockCanopy Growth's fourth-quarter earnings report was not good. But the company still projects as the leader in a soon-to-be-huge global cannabis market.As such, it makes sense that: 1) CGC stock dropped 20% on the earnings report, and 2) CGC stock will rebound from this selloff.Indeed, my modeling still calls for Canopy to net $5 in earnings per share by 2030. Assuming so, I think CGC stock is fairly valued around $40 today.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long CGC. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * The Huge Story for 2020 & Beyond That You Aren't Hearing About * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * The 1 Stock All Retirees Must Own The post Buy the Post-Earnings Dip in Canopy Growth Stock Now appeared first on InvestorPlace.
The company's U.S.-listed shares fell over 13% in premarket trading and dragged down other stocks in the industry between 2% and 5%. Medical cannabis was the only bright spot, while Canopy's revenue from recreational markets at home in Canada and internationally slumped in double-digit percentages. Ontario-based Canopy Growth's net loss attributable to the company widened to C$1.30 billion ($946.21 million), or C$3.72 per share, in the quarter ended March 31, from C$379.5 million, or C$1.10 per share, a year ago.
Canopy Growth Corp. is in the news today. In this daily bar chart of CGC, below, we can see that prices are lower so far today but let's try to focus on the bigger picture. The daily trading volume or turnover has been pretty active since November and the daily On-Balance-Volume (OBV) line looks like it has bottomed since November with the start of more aggressive buying this month.
Canopy Growth Corp. U.S.-listed shares tumbled 19% premarket, after the Canadian cannabis market leader posted weaker-than-expected earnings for its fiscal fourth quarter. Smiths Falls, Ontario-based Canopy said it had a net loss of C$1.33 billion ($946.4 million), or C$3.72 a share, in the quarter to March 31, wider than the loss of C$347.5 million, or C$1.10 a share, posted in the year-earlier period. The loss included C$743 million in impairment and restructuring charges, most of which are non-cash, the company said. Revenue net of excise taxes rose to C$107.9 million from C$94.1 million. The FactSet consensus was for a loss per share of 59 cents and revenue of C$128.9 million. Chief Executive David Klein said the company was resetting its strategy to be faster and more agile with fiscal 2021 expected to be a year of transition. "Canopy Growth's overall strategy is to unleash the full potential of cannabis, capture sizable market share in focus categories and markets and execute a path to profitability to build sustainable, long-term shareholder value," the company said in a statement. As a result, and given the uncertainty created by the coronavirus pandemic, Canopy is withdrawing previously offered guidance for achieving positive adjusted EBITDA and net income. The company had a gross cash balance of C$2.0 billion as of March 31. Shares have gained 3% in the year to date, while the Cannabis ETF has fallen 11% and the S&P 500 has fallen 6%.