CGC stock: buy or sell?

CGC stock price: $43.27 -3.00% At close on May 20th, 2019

Updated on:
May 20th, 2019

2

Shares of Canopy Growth fell a shocking -3.00% and closed at $43.27. On May 13th CGC plummed a spooky -8.50%. Monday was the 3rd red session in a row, sliding in full a -4.70%.

Should I buy CGC stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading plan helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Canopy Growth stock situation right now, hence this is not a suitable entry point.

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?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we gathered 8 ratings published for CGC stock in the last 30 days.

The general sentiment of these ratings is bullish for CGC stock, with 5 positive ratings.
Is CGC a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
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

Shares of Canopy Growth ended today at $43.27 and fell a shocking -3.00%.

Shares of Canopy Growth ended today at $43.27 and fell a shocking -3.00%. Since price and SMA200d lines crossed up on January, CGC climbed $13.63 (45.99%). Since SMA50d and SMA100d crossed up on February, CGC price slid a -6.46%.

CGC stock chart (daily)

Weekly outlook

After sliding a bloodcurdling -6.43% in a week last week, Canopy Growth closed this week at $43.27 and slipped a tragic -3.00%. Late April CGC rocketed an exceptional 10.72% in just one week. Counting this, it's been 4 red weeks in a row, sliding $-6.64 or a -14.90%.

Canopy Growth stock is trading in the range of its last top and last bottom. Loosing would mean breaking the current uptrend. Breakdowns under last bottom are selling point signals for some trading strategies. Since early January when CGC stock price broke up the SMA40w line, it gained $15.04 (53.28%). Far behind is the all-time high Canopy Growth hit by mid October 2018 and since then the price is -26.97% below that top.

CGC stock chart (weekly)

CGC stock price history

CGC IPO was on November 2nd, 2017 at $12.92 per share1. Since then, CGC stock grew a 234.90%, with an average of 234.90% per year. If you had invested $1,000 in CGC stock in 2017, it would worth $2,349.00 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 $60.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' CGC stock price predictions in the hope that they will be met as they may be wrong and not met. We have 3 price forecasts for CGC stock posted in the last month:
CGC stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
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)$40.00$60.0050.0%
The price prediction for Canopy Growth stock is $60.00, moving in a range between $80.00 and $40.00. In average, analysts' outlook on CGC price target is positive, increasing the forecast by a 50.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Canopy Growth reported super good results for 2018-Q4 on February. Canopy Growth boosted Earnings per Share (EPS) by 346.70%, beating analysts estimates of $-0.15. 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

Compared to 2017, last anual turnover report draw a dazzling increase of 95.38% to $77.95 million USD. When comparing 2018 vs 2017, nonetheless, profit margin (that is, the net income divided by revenues) plummed a -71.40% to -90.26%.

To have an up to date view 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 income was $-411.38 million dollars. When comparing 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, rocketed an exceptional 98.97%. In contrast, profit margin (net income/sales) plunged 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 posted $83.05 million in revenues for 2018-Q4, a 256.02% improvement compared to previous quarter. Reported quarter earnings marked $67.58 M with a profit margin of 81.38%. Profit margin climbed 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 an outstanding growth and skyrocketed 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 invest in a stock, it's always worth to have a look its ownership structure.

Canopy Growth shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a of all shares.

Bearish positions for CGC stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Canopy Growth:

CGCSMPLTYHT
Market cap$10.0 B$1.8 B$18.5 M
Total shares232.1 M81.9 M22.9 M
Float shares74.7 M71.4 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, May 20th, 2019
Open$44.10
Close$43.27
Day range$43.02 - $44.27
Previous close$44.61
Session gain-3.00%
Average true range$1.87
50d mov avg$45.42
100d mov avg$43.76
200d mov avg$41.80
Daily pattern
Weekly pattern lt06a

Canopy Growth performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We chose The Simply Good Foods and Shineco as the bechmarking frame for Canopy Growth stock.
Stock3m6m12m
CGCCanopy Growth-2.85%28.93%60.86%
SMPLThe Simply Good F...3.93%9.90%55.37%
TYHTShineco68.75%17.39%-60.10%

Canopy Growth competitors

Choosing a list of competitors for Canopy Growth it's tough. We selected 2 public companies that are related to and can be considered as competitors of Canopy Growth:

Latest CGC stock news