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Tuesday, September 29, 2020

Canopy Growth Corporation (NYSE:CGC) Recent Earnings Shows Major Concern

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The Canopy Growth Corporation (CGC) shares are trading at lower $16.02.

To add more color to this target, the company’s high over the last year is $39.67 and the low is $9.00. Over the last 52 weeks, CGC is down -59.62% while the S&P 500 is down -0.57%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CGC reported a profit of $-57.99 million. Canopy Growth Corporation also saw revenues decrease to $80.34 million. In addition, CGC has free cash flow of -$1.11 billion as of 03-2020. The company’s EBITDA came in at -$708.03 million which compares well with its peers.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CGC has a short ratio of 7.21 and outstanding shares of 368.99M.

Company Outlook

CGC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.32 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.79. Canopy Growth Corporation CGC also noted assets of $5.16 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CGC has historically followed its peers on positive news.

All told, Canopy Growth Corporation CGC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CGC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Canopy Growth Corporation CGC is now commanding a market cap of 5.91B and a float of 219.09M. CGC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CGC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CGC, either long or short, and we have not been compensated for this article.

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