(VIANEWS) – Canopy Growth’s stock price fell 13.55% at 13:33 EST Wednesday afternoon, following two consecutive sessions of gains on NASDAQ which currently stands at EUR12,863.25. Today appears to be marked by downward movement on stock markets; Canopy Growth closed yesterday with an overall closing price of EUR0.62, down 86.46% from its 52-week high of EUR4.77.
About Canopy Growth
Canopy Growth Corporation is a world leader in producing and distributing cannabis and hemp-based products for recreational and medical use in Canada, the US, and Germany. Operating through two divisions – Global Cannabis and Other Consumer Products – Canopy offers products such as dried cannabis flower, extracts/concentrates, beverages/gummies/vapes sold under well-known brands like Tweed, 7ACRES DOJA Ace Valley Quatreau Deep Space First + Free Spectrum Therapeutics Tokyo Smoke Martha Stewart CBD BioSteel among many others. Established since 2009 in Smiths Falls Canada Canopy has since grown significantly since 2009.
Yearly Analysis
Canopy Growth’s stock is currently trading at EUR0.54, significantly below its 52-week high of EUR4.77 but higher than its 52-week low of EUR0.35. This indicates a considerable drop in value over the past year.
Canopy Growth’s sales growth is expected to experience negative growth of 1.9% this year and another decline of 6% next year, suggesting revenue is set to decrease over time and could potentially have an adverse effect on its stock value.
Canopy Growth currently has an EBITDA ratio of 65.88, which provides an indication of profitability; however, without further information regarding expenses and financial health metrics it’s hard to gauge Canopy’s overall health as a stock.
Overall, investors should approach Canopy Growth stock with extreme caution due to anticipated negative sales growth and its significant decline over the last year. At this time, it may be prudent to explore other investment alternatives.
Technical Analysis
Canopy Growth’s stock has experienced an alarming price decline recently, falling below both its 50-day and 200-day moving averages. This indicates that its short-term and long-term trends are negative – an alarm bell for investors.
Furthermore, its trading volume of 227,414,370 was considerably less than its average of 533,429,000; which could signal that people have become disinterested with it.
The stock’s volatility has fluctuated, reaching negative 6.53% last week, negative 3.35% in the last month and positive 9.36% over the last quarter. While its highest average volatility amplitude occurred last week at 6.53%, it has steadily decreased over recent months and quarters.
Canopy Growth’s stock is currently considered overbought (>=80), which could indicate it has been overvalued and may require correction.
Overall, investors should exercise extreme caution when considering Canopy Growth stock; its price has recently underperformed its moving averages and the stock’s volatile and overbought status may present potential risks for investors.
Quarter Analysis
As an AI language model, I can provide an investment outlook based on the financial data you provided. Please be aware that this analysis should not be seen as financial advice; before making any investment decisions it is vital that you conduct thorough research yourself or consult a financial advisor.
Based on Canopy Growth’s financial data, its current quarter sales growth stands at negative 18.2% – something investors should take note of. However, growth estimates for both this quarter and its follow up are 62.9 and 85.1 respectively; suggesting the company may only be experiencing temporary slowdown but will rebound quickly in due course.
Additionally, the company experienced year-on-year quarterly revenue growth of 2.6% for the twelve trailing months. This indicates a modest uptick in revenue over this past year.
Canopy Growth’s negative sales growth is certainly cause for alarm; however, its estimated growth estimates for the present and next quarters indicate it could soon experience a rebound in growth. Furthermore, its modest revenue growth over the last year may provide encouragement for investors; nonetheless it’s essential that further analysis be performed prior to making any decisions regarding investments.
Equity Analysis
Investment Outlook
Based on Canopy Growth’s financial data, its Earnings Per Share (EPS) for the trailing twelve month period stands at EUR-1.39; this indicates negative earnings over that timeframe and may indicate that its shareholders may not be benefitting. This could pose concerns to investors as it suggests the company may not be producing profits to generate returns on their investments.
Return on Equity (ROE) for the twelve trailing months stands at negative -99.56%, an indicator that suggests profits aren’t being generated efficiently and shareholder’s equity effectively utilized by the company – this should serve as a major red flag to potential investors that the business may not be performing well financially.
Overall, Canopy Growth’s negative EPS and ROE figures suggest it may not be an ideal investment opportunity right now. Investors may wish to exercise caution when making any decisions to invest. It might be worthwhile searching for companies with more favorable financial performance indicators before making their investment decisions.
Previous days news about Canopy Growth (CGC)
Canopy Growth Corporation (CGC) fell more than the broader market on Monday. Zacks reported on this fact on October 23. According to them, investors will closely follow Canopy Growth Corporation in its earnings performance announcement and recent changes in analyst estimates for Canopy Growth Corporation.
More news about Canopy Growth (CGC).
