Canopy Growth Corporation (NASDAQ: CGC) is a cannabis company that produces, distributes, and sells recreational and medical marijuana. The company is focused on delivering the benefits of cannabis to the masses. Its cannabis comes from its production facilities, which has allowed it to become a dominant player in the global cannabis industry.
Recent Stock Performance
Canopy Growth Corporation (CGC) stock has not been tracking well in 2023. Year-to-date, the stock has lost 76.43% of its value. At the close of the last trading session on December 13, 2023, the stock lost 20.45% of its value. The downward trend was despite a recent announcement that it would consolidate its shares. In early morning trading on December 14, 2023, the stock made minor gains of +0.9358%, valued at around $0.5500 per share.
Canopy Growth Share Consolidation Plan
On December 13, 2023, Canopy Growth Corporation announced a share consolidation plan. The company stock will be split at 1:10, effective December 20, 2023. According to its announcement, the split was necessitated by the need to continue complying with Nasdaq’s listing requirements. Nasdaq requires that all listed companies maintain a minimum bid price of $1.00. Otherwise, they receive a 180-day notice, after which it delists them.
Canopy Growth Recent Performance
Canopy Growth Corporation was once renowned as the leading stock on Wall Street for those seeking exposure to the cannabis industry. However, investors have lost hope after years of huge losses.
CGC stock was significantly boosted when cannabis was legalized in Canada in late 2018, soaring to $50 per share. However, those gains were short-lived, and the stock has slid downward. The stock gained some traction in September after a bipartisan group of US Senators voted to advance the SAFER Banking Act to protect banks handling cannabis-related transactions. However, the bill failed to pass, which has dampened investor confidence in CGC stock.
Canopy Growth Earnings Report
Canopy Growth Corporation released its Q2 2024 earnings report on November 9, 2023. The results were disappointing for investors. It reported an EPS of -$0.21, missing investor estimates by 94.82%. In the past four quarters, Canopy Growth beat estimates only 25% of the time. Its reported revenue of $69.6 million missed investor estimates by 16.37% and declined 20.86% year-on-year.
CGC Stock Forecast
Stock analysts give Canopy Growth Corporation stock a sell rating. They predict a high of $3.20 and a low of $0.50 for the stock. Their average price target for the stock is $1.34, a 139.29% upside based on the current price of $0.580 during early morning trading.
Should you Buy CGC Stock?
While Canopy Growth markets itself as a cannabis company, most of its revenue has been from its BioSteel beverage line. However, on December 1, 2023, the company announced that it was selling its BioSteel business division to focus on its core business of selling cannabis. Consequently, the company has lost its most significant revenue stream. Based on the available data, the sell rating by analysts is accurate.
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