Canopy Growth Corporation [CGC] is -41.99% lower this YTD. Is it still time to buy?

Canopy Growth Corporation [NASDAQ: CGC] gained 7.20% on the last trading session, reaching $1.34 price per share at the time. The company report on April 14, 2023 at 8:50 AM that Canopy Growth Announces Refinancing of C$100 million of Notes due 2023.

Canopy Growth Corporation (“Canopy Growth” or the “Company”) (TSX: WEED) (NASDAQ: CGC) announced today that it has entered into an exchange agreement (the “Exchange Agreement”) with Greenstar Canada Investment Limited Partnership (“GCILP”), a wholly-owned subsidiary of Constellation Brands, Inc. (“CBI”), in order to extinguish C$100 million (approximately USD$73.9 million) aggregate principal amount of the Company’s outstanding 4.25% unsecured notes due 2023 (the “Existing Notes”).

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Pursuant to the Exchange Agreement, the Company agreed to acquire and cancel C$100 million aggregate principal amount of the Existing Notes held by GCILP in exchange for: (i) a cash payment to GCILP in the amount of unpaid and accrued interest owing under the Existing Notes held by GCILP; and (ii) a promissory note (the “Promissory Note”) issuable to GCILP in the aggregate principal amount of C$100 million payable on December 31, 2024 (collectively, the “CBI Transaction”). The Promissory Note will bear interest at a rate of 4.25% per year, payable on maturity of the Promissory Note. The CBI Transaction is expected to close on or about April 14, 2023, subject to customary closing conditions.

Canopy Growth Corporation represents 521.00 million in outstanding shares, while the company has a total market value of $698.15 million with the latest information. CGC stock price has been found in the range of $1.23 to $1.37.

If compared to the average trading volume of 5.81M shares, CGC reached a trading volume of 16967395 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Canopy Growth Corporation [CGC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CGC shares is $1.79 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CGC stock is a recommendation set at 3.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Bernstein have made an estimate for Canopy Growth Corporation shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on April 04, 2023. While these analysts kept the previous recommendation, Bernstein raised their target price to Underperform. The new note on the price target was released on November 02, 2022, representing the official price target for Canopy Growth Corporation stock.

The Average True Range (ATR) for Canopy Growth Corporation is set at 0.08, with the Price to Sales ratio for CGC stock in the period of the last 12 months amounting to 1.58. The Price to Book ratio for the last quarter was 0.47.

Trading performance analysis for CGC stock

Canopy Growth Corporation [CGC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.08. With this latest performance, CGC shares dropped by -15.72% in over the last four-week period, additionally sinking by -58.51% over the last 6 months – not to mention a drop of -79.91% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CGC stock in for the last two-week period is set at 37.39, with the RSI for the last a single of trading hit 46.37, and the three-weeks RSI is set at 34.19 for Canopy Growth Corporation [CGC]. The present Moving Average for the last 50 days of trading for this stock 1.7438, while it was recorded at 1.2620 for the last single week of trading, and 2.6974 for the last 200 days.

Canopy Growth Corporation [CGC]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Canopy Growth Corporation [CGC] shares currently have an operating margin of -111.20 and a Gross Margin at -25.66. Canopy Growth Corporation’s Net Margin is presently recorded at -58.08.

Return on Total Capital for CGC is now -10.91, given the latest momentum, and Return on Invested Capital for the company is -5.85. Return on Equity for this stock declined to -8.55, with Return on Assets sitting at -4.82. When it comes to the capital structure of this company, Canopy Growth Corporation [CGC] has a Total Debt to Total Equity ratio set at 45.69. Additionally, CGC Total Debt to Total Capital is recorded at 31.36, with Total Debt to Total Assets ending up at 29.10. Long-Term Debt to Equity for the company is recorded at 44.37, with the Long-Term Debt to Total Capital now at 30.45.

Reflecting on the efficiency of the workforce at the company, Canopy Growth Corporation [CGC] managed to generate an average of -$95,900 per employee. Receivables Turnover for the company is 5.51 with a Total Asset Turnover recorded at a value of 0.08.

Canopy Growth Corporation [CGC]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CGC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Canopy Growth Corporation go to 3.73%.

An analysis of insider ownership at Canopy Growth Corporation [CGC]

There are presently around $87 million, or 14.21% of CGC stock, in the hands of institutional investors. The top three institutional holders of CGC stocks are: VANGUARD GROUP INC with ownership of 10,478,581, which is approximately 2.4% of the company’s market cap and around 33.53% of the total institutional ownership; MILLENNIUM MANAGEMENT LLC, holding 8,556,656 shares of the stock with an approximate value of $11.47 million in CGC stocks shares; and ETF MANAGERS GROUP, LLC, currently with $10.86 million in CGC stock with ownership of nearly New of the company’s market capitalization.

Positions in Canopy Growth Corporation stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 141 institutional holders increased their position in Canopy Growth Corporation [NASDAQ:CGC] by around 21,242,143 shares. Additionally, 144 investors decreased positions by around 29,637,097 shares, while 119 investors held positions by with 13,849,167 shares. The mentioned changes placed institutional holdings at 64,728,407 shares, according to the latest SEC report filing. CGC stock had 60 new institutional investments in for a total of 9,831,613 shares, while 51 institutional investors sold positions of 21,974,037 shares during the same period.


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