CGC stock: buy or sell?
July 15th, 2019
Should I buy CGC stock?You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.
Currently, Canopy Growth stock doesn't match any of these trading strategies, so our recommendation is not to buy.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
Is Canopy Growth stock a buy?
Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness.At Stocks2.com, we gathered 14 ratings published for CGC stock in the last 30 days. The general sentiment of these ratings is bullish for CGC stock, with 8 positive ratings.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-7-8||Piper Jaffray Companies||n/a||Overweight|
|2019-7-5||Bryan, Garnier & Co||Buy||Neutral|
|2019-6-28||Consumer Edge||n/a||Equal Weight|
|2019-6-19||Bank of America||n/a||Buy|
|2019-4-17||Bank of America||n/a||Buy|
|2019-4-12||Piper Jaffray Companies||n/a||Buy|
|2019-2-25||Jefferies Financial Group||n/a||Hold|
|2019-2-21||Seaport Global Securities||n/a||Neutral|
|2019-1-9||Piper Jaffray Companies||n/a||Overweight|
|2019-1-25||Piper Jaffray Companies||n/a||Overweight|
CGC stock analysis
After sliding a hair-raising -8.42% on Friday, Canopy Growth closed today at $35.17 and escalated a more than good 2.81%.
After sliding a hair-raising -8.42% on Friday, Canopy Growth closed today at $35.17 and escalated a more than good 2.81%. Since price and SMA200d lines crossed down on June/21, CGC fell $-8.54 per share (-19.54%). CGC marked a lower low and a lower high in the short term, defining a downward trend. Climbing above $41.65 would break this short term down trend and open possibilities for reversing this situation.
After sliding a frightening -17.39% in a week last week, Canopy Growth closed this week at $35.17 and rose a remarkable 2.81%.
The support didn't resisted and CGC slid deeper. Price is now looking for lower supports, and best candidates are 25.26. Since price and 40-weeks moving average lines crossed down by mid June, CGC fell $-7.02 per share (-16.64%). Trading stocks that are below the 40-weeks (that is, 200-days) moving average line is not recommended by many experts, as it indicates that the stock has not enough institutional support. Far behind is the all-time high Canopy Growth marked by mid October 2018 and since then the price is -40.64% below that top.
CGC stock price history
CGC stock went public on November 2nd, 2017 with a price of $12.921. Since then, CGC stock surged a 172.20%, with a yearly average of 172.20%. If you had invested right after CGC's IPO a $1,000 in CGC stock in 2017, it would worth $1,722.00 today.
1: Adjusted price after possible price splits or reverse-splits.
CGC stock historical price chart
CGC stock reached all-time highs on October with a price of $59.25.
CGC stock price target is $69.40Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 6 price targets for Canopy Growth stock:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-7-8||Piper Jaffray Companies||Lowers Target||$57.00||$54.00||-5.3%|
|2019-6-19||Bank of America||Lowers Target||$80.00||$75.00||-6.3%|
|2019-4-12||Piper Jaffray Companies||Set Price Target||n/a||$80.00||-|
|2019-1-9||Piper Jaffray Companies||Initiates||n/a||$40.00||-|
|2019-1-25||Piper Jaffray Companies||Raises Target||$40.00||$60.00||50%|
Financials and fundamental analysis
Earnings date and Earnings per ShareOn February, Canopy Growth reported its latest financial data, posting an astounding climb for the Earnings per Share (EPS). Experts were expecting $-0.15 per share, but Canopy Growth posted $-0.67.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 2018, Canopy Growth annual revenues skyrocketed a dazzling 95.38% to $77.95 M USD from $39.90 marked in 2017. In contrary, its earnings margin (compared to sales) plunged to -90.26%, that is $-70.35 million. To have an up to date picture of the financial situation of Canopy Growth, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Canopy Growth TTM sales up to December 2018 were $155.10 and earnings were $-411.38 M dollars. If we compare this TTM figures with the last reported annuality, we can review Canopy Growth business evolution since March 2018: Annual turnover up to December, compared to lastest yearly report, skyrocketed an outstanding 98.97%. In contrast, profit margin (net income/revenues) collapsed at -90.26%.
|2015||$2.37 M||-||$-9.35 M-394.2%||-|
|2016||$13 M||435.60%||$-3.50 M-27.5%||-62.59%|
|2017||$40 M||214.16%||$-7.52 M-18.9%||115.13%|
|2018||$78 M||95.38%||$-70.35 M-90.3%||835.42%|
|TTM||$155 M||98.97%||$-411.38 M-265.2%||484.73%|
Quarterly financial resultsCanopy Growth reported $83.05 million in sales for 2018-Q4, a 256.02% up compared to previous quarter. Reported quarter income marked $67.58 million with a profit margin of 81.38%. Profit margin boosted a 1,526.64% compared to previous quarter when profit margin was -1,445.26%. When comparing revenues to same quarter last year, Canopy Growth sales marked a super good gain and climbed a 381.29%.
|2017-Q2||$16 M||-||$-4.32 M-27.2%||-|
|2017-Q3||$14 M||-10.76%||$-1.08 M-7.6%||-75.03%|
|2017-Q4||$17 M||21.83%||$1.26 M7.3%||-216.70%|
|2018-Q1||$23 M||32.17%||$-61.54 M-269.9%||-4,989.29%|
|2018-Q2||$26 M||13.64%||$-80.28 M-309.8%||30.44%|
|2018-Q3||$23 M||-9.99%||$-337.14 M-1445.3%||319.97%|
|2018-Q4||$83 M||256.02%||$67.58 M81.4%||-120.05%|
Canopy Growth ownershipWhen you are planning to buy a stock, it's always worth to overview its ownership structure.
Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Canopy Growth, of all outstanding shares are owned by its staff.
Bearish positions for CGC stock account 0.00%, no big difference from last month.
For a better context understanding, the next table shows ownership data compared to other related companies:
|Market cap||$1.4 B||$0.0 M||$14.9 M|
|Total shares||40.6 M||0.0 M||22.9 M|
|Float shares||215.7 M||71.3 M||16.4 M|
|- Institutional holdings (%)||0.0%||92.0%||2.9%|
|- Insider holdings (%)||0.0%||14.3%||28.3%|
|Shares in short selling||0.0%||0.0%||0.0%|
|Monday, July 15th, 2019|
|Day range||$33.38 - $35.83|
|Average true range||$1.57|
|50d mov avg||$42.38|
|100d mov avg||$43.85|
|200d mov avg||$41.73|
Canopy Growth performancePerformance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. For Canopy Growth, the benchmark is made against The Simply Good Foods and Shineco.
|SMPLThe Simply Good F...||20.80%||35.47%||56.16%|
Canopy Growth competitorsChoosing a list of competitors for Canopy Growth it's difficult. We selected 2 public companies that are related to and can be considered as competitors of Canopy Growth:
Latest CGC stock news
- Seeking AlphaCanopy Growth: Life After Bruce Linton Will Be Very DifferentJuly 12, 2019
- InvestorPlaceCanopy Growth Is the Biggest Cannabis Company, But Is It the Best?July 9, 2019
- InvestorPlaceWhere Is Canopy Growth Stock Headed After the Shocking Removal of Its Co-CEO?July 8, 2019
- InvestorPlaceMarijuana Stocks News: Why’s Canopy Growth Founder Bruce Linton Fired?July 3, 2019
- Seeking AlphaCanopy Growth Fires Its Co-CEO Bruce LintonJuly 3, 2019