Canopy Growth Corporation (NASDAQ:CGC) Relative Strength Index (RSI) is 38.45, with weekly volatility at 4.07% and ATR at 1.18. The CGC stock’s 52-week price range has touched low of $13.83 and a $56.50 high. Intraday shares traded counted 2.91 million, which was 16.02% higher than its 30-day average trading volume of 3.46M. Its shares traded lower over the last trading session, losing -3.89% on 06/18/21. The shares fell to a low of $22.94 before closing at $22.98. CGC’s previous close was $23.91 while the outstanding shares total 382.32M.
Investors have identified the Drug Manufacturers – Specialty & Generic company Canopy Growth Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $8.79 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Canopy Growth Corporation (CGC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CGC, the company has in raw cash 875.11 million on their books with 7.45 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.15 billion total, with 215.49 million as their total liabilities.
CGC were able to record -477.65 million as free cash flow during the 08/16/2021 quarter of the year, this saw their quarterly net cash flow reduce by -112.57 million. In cash movements, the company had a total of -352.98 million as operating cash flow.
Potential earnings growth for Canopy Growth Corporation (CGC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/16/2021 quarter of the year, Canopy Growth Corporation recorded a total of 116.03 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 30.76% coming in sequential stages and their sales for the 08/16/2021 quarter reducing by -0.89%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 108.42 million trying to sell their products during the last quarter, with the result yielding a gross income of 7.62 million. This allows shareholders to hold on to 382.32M with the recently reported earning now reading -1.25 cents per share. This is a figure that compared to analyst’s prediction for their 08/16/2021 (-0.66 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.17 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CGC sounds very interesting.
Is the stock of CGC attractive?
In related news, President, Kovacevic Rade Nikola sold 4,372 shares of the company’s stock in a transaction that recorded on Nov 13. The sale was performed at an average price of 31.40, for a total value of 137,281. As the sale deal closes, the President, Kovacevic Rade Nikola now sold 86,666 shares of the company’s stock, valued at 2,719,579. Also, President, Kovacevic Rade Nikola sold 150,000 shares of the company’s stock in a deal that was recorded on Nov 12. The shares were price at an average price of 31.65 per share, with a total market value of 4,747,500. Following this completion of acquisition, the Chief Legal Officer, Shaer Phillip Stephen now holds 70,000 shares of the company’s stock, valued at 2,172,100. In the last 6 months, insiders have changed their ownership in shares of company stock by 38.58%.