(VIANEWS) – Canopy Growth (NASDAQ: CGC) stock saw an incredible 13.97% surge to EUR5.14 on Monday’s trading session after posting consecutive gains over two days. Meanwhile, the NASDAQ index also experienced gains with its rise to EUR14,992.97 showing signs of potential uptick today; Canopy’s last closing price was EUR5.14, an amount 84.04% less than its 52-week high of EUR32.20.
About Canopy Growth
Canopy Growth Corporation is a premier producer and distributor of cannabis and hemp-based products, operating across Canada, the US, Germany and internationally. Their offerings span dried cannabis flower, extracts, concentrates beverages gummies vapes under various brands such as Tweed 7ACRES DOJA Ace Valley Tokyo Smoke Martha Stewart CBD among many more. Established in 2009 with their headquarters located in Smiths Falls Canada.
Yearly Analysis
Canopy Growth’s stock currently trades at EUR5.14, significantly below its 52-week high of EUR32.20 but higher than its low of EUR3.46 – suggesting it may have experienced periods of considerable volatility over the past year.
Canopy Growth’s anticipated sales growth is predicted to decline 18.2% this year; however, they anticipate recovering with a 3% sales growth over the following year – showing short-term challenges but having positive prospects.
Canopy Growth’s EBITDA score has reached 2.16, an indicator of its profitability. This suggests the company is producing positive cash flow and remains profitable – an encouraging sign for investors.
Canopy Growth’s stock is an attractive opportunity for those willing to assume moderate levels of risk. Anticipated sales growth indicates the company could be on its way back, and its positive EBITDA shows it remains profitable; however, investors should conduct extensive research and analysis prior to making an informed decision.
Technical Analysis
Canopy Growth Corporation (CGC) has fallen significantly below both its 50-day moving average of EUR5.81 and 200-day moving average of EUR8.49 in recent trading activity. This suggests a downward trend both short- and long-term.
Though bearish trend, today’s volume of 6,209,716 represents 94.04% higher than the stock’s average volume of 3,200,080 and indicates increased investor enthusiasm in this stock.
Canopy Growth has experienced above-average volatility over the past week, month and quarter with average intraday variations averaging 2.80%; negative 0.25% variance was experienced once and average annualized volatility reached 8.84% of average volatility across these timeframes respectively. The highest amplitude was 8.84% recorded for last week 8.44% 8.44% 8.44% 8.44% while its highest peak reached 6.26% during quarter ending 31 March 2014.
Canopy Growth’s stock is considered oversold according to its stochastic oscillator (=20), suggesting it may be ready for a rebound. However, prices can be affected by many different factors and past performance is no guarantee of future outcomes.
Quarter Analysis
According to Canopy Growth’s sales data for the coming quarter, they experienced a negative 13.7% sales growth rate; which could signal a possible slowdown in their revenue growth.
Canopy Growth is projected to experience positive growth estimates for both its current and next quarters, at 90.6% and 96.3%, which indicates they may experience a rebound from recent sales growth declines with substantial sales growth potential in near future.
Considered below is Canopy Growth’s year-on-year quarterly revenue growth has decreased by 20.9% year-over-year; this could be cause for alarm; however, according to estimates for current and subsequent quarters growth estimates suggest this decline may only be temporary and that they could turn things around soon enough.
Investors should keep a close watch on Canopy Growth’s sales growth and revenue growth over the coming quarters to assess whether or not Canopy can manage to recover and continue its trajectory of expansion.
Equity Analysis
Canopy Growth, one of the leading cannabis companies, has reported a negative trailing twelve month earnings per share (EPS) figure of EUR-15.88 which indicates it is not currently profitable and should cause alarm among investors. Furthermore, Canopy’s return on equity (ROE) for this period was negative at -99.66% which suggests they are failing to generate sufficient profits to justify shareholder equity invested into the business.
Before making any investments in Canopy Growth, investors must carefully assess its financial metrics. While Canopy is well-established within the cannabis industry, investors should carefully weigh both potential risks and rewards when making any decisions regarding this company. It may be prudent for investors to monitor Canopy’s financial performance and growth prospects over the coming months before making their final decisions.
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