CGC stock: buy or sell?

CGC stock price: $13.86 2.21% At close on May 14th, 2020

Updated on:
May 14th, 2020

1

After sliding for 4 days, Thursday Canopy Growth jumped a very good 2.21%, closing at $13.86. Yesterday CGC plummed a spooky -8.92%. Thursday session broke a read streak of 4 sessions.

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. That's why is so important to define your own trading strategy that matches with your character as inversor. 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 doesn't mean CGC will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Canopy Growth stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for CGC stock for the last month.

CGC stock analysis

Daily outlook

After sliding a spooky -8.92% yesterday, Canopy Growth closed today at $13.86 and jumped a very good 2.21%.

After sliding for 4 sessions, Thursday Canopy Growth jumped a very good 2.21%, closing at $13.86. From a daily outlook perspective, CGC is drawing an uptrend of rising tops and rising bottoms. Since its last top on April/28 at $18.25, price slid and bounced up back from $14.78. Breaking down under $14.78 would cancel the current uptrend and it might slide further to test lower supports. Note that $18.25 might act as a resistance line. If Canopy Growth breakouts over $18.25 with average or higher volume, this would be a signal that the uptrend resumes. Since last February when CGC stock price broke down the SMA100d line, it slid $-8.02 per share (-36.65%).

CGC stock chart (daily)

Weekly outlook

Canopy Growth shares plunged -9.65% this week, ending at $13.86. Early April CGC climbed a dazzling 9.06% in just one week.

Canopy Growth stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, CGC might consolidate in a flat-base, waiting to break out over or down under . Since price and 40-weeks moving average lines crossed down by mid June 2019, CGC fell $-28.33 per share (-67.15%). Stocks under the 200d moving average line are usually not recommended for average traders.

CGC stock chart (weekly)

CGC stock price history

CGC stock went public on April 7th, 2014 with a price of $2.451. Since then, CGC stock grew a 465.70%, with a yearly average of 77.60%. If you had invested $1,000 in CGC stock in 2014, it would worth $4,657.00 today.

1: Adjusted price after possible price splits or reverse-splits.

CGC stock historical price chart

CGC stock reached 52-week highs on May at $46.97, and all-time highs 2018-10-16 with a price of 59.25.

CGC stock price target

Nobody can reliably foresee how stock prices may evolve in the future. 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 have not detected any price forecast for Canopy Growth stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

, Canopy Growth reported its latest financial data, posting an extraordinary growth for the Earnings per Share (EPS). Experts expected $-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 boosted an exceptional 95.38% to $77.95 M USD from $39.90 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) collapsed 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 earnings were $-411.38 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Canopy Growth business evolution since March 2018: Annual revenues up to December, compared to lastest yearly report, climbed a dazzling 98.97%. In contrary, 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 reported $83.05 million in sales for 2018-Q4, a 256.02% up compared to previous quarter. Reported quarter earnings marked $67.58 M with a profit margin of 81.38%. Profit margin skyrocketed a 1,526.64% compared to previous quarter when profit margin was -1,445.26%. When comparing sales to same quarter last year, Canopy Growth sales marked a super good growth and rocketed 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

Having a look at Canopy Growth ownership structure gives valuable information about the company and its governance (insider ownership) or the amount of investors that are on the short side.

Canopy Growth shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 78.65% of all shares.

In case of Canopy Growth stock, 0.00% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). 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:

CGC
Market cap$5.1 B
Total shares368.5 M
Float shares200.9 M
  - Institutional holdings (%)0.0%
  - Insider holdings (%)78.6%
Shares in short selling0.0%

CGC summary

Thursday, May 14th, 2020
Open$13.20
Close$13.86
Day range$12.95 - $14.02
Previous close$13.56
Session gain2.21%
Average true range$1.04
50d mov avg$14.24
100d mov avg$17.69
200d mov avg$20.43
Daily patternlb03a
Weekly pattern lt06a

Canopy Growth performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared Canopy Growth against in the following table:
Stock3m6m12m
CGCCanopy Growth-37.37%-9.59%-68.93%

Canopy Growth competitors

Unfortunately, we could not find any public company that could be defined as Canopy Growth competitor. This doesn't mean Canopy Growth does not have any competitor in the market, it's just we could not detected it.

    Latest CGC stock news