On Friday, Canopy Growth shares rose by $0.02, reaching $6.50 during mid-day trading. The stock had a trading volume of 2,239,790 shares, compared to its average volume of 2,278,766. The company has a market cap of $495.30 million, a PE ratio of -1.02, and a beta of 0.93. Canopy Growth’s 50-day simple moving average is $7.92, and its 200-day simple moving average is $6.46. The company’s current ratio is 1.58, quick ratio is 1.25, and debt-to-equity ratio is 0.99. The stock’s twelve-month low is $2.76, and its twelve-month high is $19.20.
Canopy Growth reported its quarterly earnings on May 30, showing a loss of $0.28 per share, better than the analysts’ consensus estimate of a $0.33 loss. The company had a negative net margin of 185.77% and a negative return on equity of 62.67%. Revenue for the quarter was $53.99 million, compared to the expected $52.71 million. Analysts predict that Canopy Growth will post a -1.07 EPS for the current fiscal year.
Insider Transactions and Institutional Activity
Director Willy Kruh sold 3,738 shares of Canopy Growth stock on June 10 at an average price of $9.94, totaling $37,155.72. After the transaction, Kruh owns 17,295 shares of the company’s stock, valued at $171,912.30. Insiders have sold 7,545 shares of company stock valued at $67,997 in the last three months. Corporate insiders own 0.35% of the stock.
Institutional investors have recently adjusted their positions in the stock. Genesee Capital Advisors LLC increased its holdings by 29.9% in the first quarter, owning 13,047 shares worth $113,000 after acquiring an additional 3,000 shares. PCG Wealth Advisors LLC raised its stake by 73.6%, now owning 31,363 shares worth $271,000. Concurrent Investment Advisors LLC and Gainplan LLC acquired new positions valued at $289,000 and $302,000, respectively. B. Riley Wealth Advisors Inc. bought a new position worth $475,000. Institutional investors and hedge funds own 3.33% of the company’s stock.
Analyst Ratings and Stock Performance
Several analysts have commented on Canopy Growth. Atb Cap Markets upgraded the company to a “hold” rating in June. Piper Sandler lowered their price objective from $3.00 to $2.00, giving an “underweight” rating in July.
Canopy Growth Corporation, together with its subsidiaries, produces, distributes, and sells cannabis and hemp-based products for recreational and medical purposes primarily in Canada, the United States, and Germany. It operates through two segments: Global Cannabis and Other Consumer Products.
Canopy Growth’s stock experienced a notable surge, attributed to short squeeze interest. The company’s short interest as a percentage of its float is around 15%. This surge is linked to positive sentiment around potential U.S. legalization and Canopy Growth’s plans to enter the U.S. market, which were recently approved by shareholders.
Short Squeeze Dynamics
Canopy Growth’s stock increase by 25% in early afternoon trading has raised speculation about a potential short squeeze. With short interest at about 15% of the company’s float, many market participants are betting on a continued rise. Positive sentiment around cannabis rescheduling and U.S. legalization is contributing to this interest.
Chris MacDonald, a financial analyst, notes that the stock’s recent performance could lead to a short-term short squeeze. However, the outcome will depend on legislative developments in the U.S. and ongoing market dynamics.
