CGC stock: buy or sell?

CGC stock price: $35.17 2.81% At close on July 15th, 2019

Updated on:
July 15th, 2019

1

After sliding a hair-raising -8.42% on Friday, Canopy Growth closed today at $35.17 and escalated a more than good 2.81%. Last session broke a streak of 4 red sessions.

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.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

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.
Is CGC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-7-8Piper Jaffray Companiesn/aOverweight
2019-7-5Bryan, Garnier & CoBuyNeutral
2019-6-28Consumer Edgen/aEqual Weight
2019-6-24Desjardinsn/aHold
2019-6-19Bank of American/aBuy
2019-6-12Evercore ISIn/aOutperform
2019-4-17Bank of American/aBuy
2019-4-12Piper Jaffray Companiesn/aBuy
2019-2-25Jefferies Financial Groupn/aHold
2019-2-21Seaport Global Securitiesn/aNeutral
2019-2-19GMP SecuritiesBuyHold
2019-1-9Piper Jaffray Companiesn/aOverweight
2019-1-25Piper Jaffray Companiesn/aOverweight
2019-1-18CIBCn/aOutperform

CGC stock analysis

Daily outlook

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.

CGC stock chart (daily)

Weekly outlook

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 chart (weekly)

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 $69.40

Predicting 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:
CGC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-7-8Piper Jaffray CompaniesLowers Target$57.00$54.00-5.3%
2019-6-19Bank of AmericaLowers Target$80.00$75.00-6.3%
2019-6-12Evercore ISIInitiates$120.00$107.57-10.4%
2019-4-12Piper Jaffray CompaniesSet Price Targetn/a$80.00-
2019-1-9Piper Jaffray CompaniesInitiatesn/a$40.00-
2019-1-25Piper Jaffray CompaniesRaises Target$40.00$60.0050%
(in average)$74.30$69.40-7.0%
Moving in a range from $107.57 and $40.00, the price prediction for Canopy Growth stock is $69.40. In average, analysts' outlook on CGC price target is negative, downgrading the forecast by a -7.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On 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.
CGC earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q4-n/an/an/a
2018-Q12018-06-27n/a-0.1n/a
2018-Q22018-08-14-0.12-0.31n/a
2018-Q32018-11-14-0.13-0.76n/a
2018-Q42019-02-14-0.15-0.67n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 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%.

CGC annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2015$2.37 M-$-9.35 M-394.2%-
2016$13 M435.60%$-3.50 M-27.5%-62.59%
2017$40 M214.16%$-7.52 M-18.9%115.13%
2018$78 M95.38%$-70.35 M-90.3%835.42%
TTM $155 M98.97%$-411.38 M-265.2%484.73%

Quarterly financial results

Canopy 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%.
CGC quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
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 M21.83%$1.26 M7.3%-216.70%
2018-Q1$23 M32.17%$-61.54 M-269.9%-4,989.29%
2018-Q2$26 M13.64%$-80.28 M-309.8%30.44%
2018-Q3$23 M-9.99%$-337.14 M-1445.3%319.97%
2018-Q4$83 M256.02%$67.58 M81.4%-120.05%

Canopy Growth ownership

When 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:

CGCSMPLTYHT
Market cap$1.4 B$0.0 M$14.9 M
Total shares40.6 M0.0 M22.9 M
Float shares215.7 M71.3 M16.4 M
  - Institutional holdings (%)0.0%92.0%2.9%
  - Insider holdings (%)0.0%14.3%28.3%
Shares in short selling0.0%0.0%0.0%

CGC summary

Monday, July 15th, 2019
Open$34.23
Close$35.17
Day range$33.38 - $35.83
Previous close$34.21
Session gain2.81%
Average true range$1.57
50d mov avg$42.38
100d mov avg$43.85
200d mov avg$41.73
Daily patternlb06a
Weekly pattern lt06c

Canopy Growth performance

Performance 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.
Stock3m6m12m
CGCCanopy Growth-21.07%-19.19%44.67%
SMPLThe Simply Good F...20.80%35.47%56.16%
TYHTShineco-48.82%10.17%-55.17%

Canopy Growth competitors

Choosing 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