Canopy Growth (NASDAQ:CGC) Posts Earnings Results, Misses Estimates By $0.07 EPS

Canopy Growth (NASDAQ:CGC) posted its quarterly earnings results on Friday. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($0.07), Zacks reports. Canopy Growth had a negative return on equity of 61.97% and a negative net margin of 113.21%.

Here are the key takeaways from Canopy Growth’s conference call:

• Canopy ended Q3 with CAD 371 million in cash and a CAD 146 million net cash position, and completed a post-quarter CAD 150 million recapitalization that extended debt maturities to 2031, improving near-term liquidity and financing flexibility.
• The proposed acquisition of MTL Cannabis is expected to be accretive, adding high-quality flower supply, profitable domestic medical operations, and a stronger Quebec adult-use footprint that should boost gross margins and international supply capability.
• Canopy reported its narrowest Adjusted EBITDA loss to date (CAD 3 million) after identifying CAD 29 million of annualized cost savings, and reiterated a target of achieving positive Adjusted EBITDA in fiscal 2027.
• Canadian operations showed momentum with medical net revenue up 15% year‑over‑year (sixth consecutive quarter of growth) and adult‑use revenue up 8% year‑over‑year, led by pre-rolls and vapes.
• A proposed reduction in the Veterans Reimbursement Program from CAD 8/g to CAD 6/g (potentially effective April 1) represents a meaningful headwind to medical margins, prompting preemptive efficiency measures.

Canopy Growth Price Performance

Canopy Growth stock traded up $0.05 during midday trading on Friday, hitting $1.13. 7,689,838 shares of the company’s stock were exchanged, compared to its average volume of 14,837,630. The stock has a 50-day moving average price of $1.25 and a two-hundred day moving average price of $1.29. Canopy Growth has a 52-week low of $0.77 and a 52-week high of $2.38. The company has a market cap of $414.51 million, a P/E ratio of -0.57 and a beta of 0.56. The company has a debt-to-equity ratio of 0.31, a quick ratio of 4.23 and a current ratio of 5.50.

Institutional Investors Weigh In On Canopy Growth

A number of institutional investors and hedge funds have recently bought and sold shares of CGC. Jones Financial Companies Lllp lifted its position in Canopy Growth by 10,308.3% during the first quarter. Jones Financial Companies Lllp now owns 969,533 shares of the company’s stock valued at $882,000 after purchasing an additional 960,218 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Canopy Growth by 64.6% in the first quarter. Goldman Sachs Group Inc. now owns 330,278 shares of the company’s stock worth $301,000 after acquiring an additional 129,620 shares in the last quarter. Murchinson Ltd. bought a new position in Canopy Growth in the second quarter valued at $183,000. Boothbay Fund Management LLC purchased a new stake in Canopy Growth during the second quarter valued at about $30,000. Finally, Tidal Investments LLC lifted its stake in Canopy Growth by 31.5% during the second quarter. Tidal Investments LLC now owns 5,033,793 shares of the company’s stock worth $6,141,000 after purchasing an additional 1,204,530 shares during the last quarter. 3.33% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently weighed in on CGC. Alliance Global Partners reiterated a “neutral” rating on shares of Canopy Growth in a research note on Monday, December 15th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Canopy Growth in a research report on Wednesday, January 21st. Benchmark upgraded Canopy Growth from a “sell” rating to a “hold” rating in a research note on Monday, November 10th. Finally, Wall Street Zen raised Canopy Growth from a “sell” rating to a “hold” rating in a report on Saturday, November 8th. Three investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Reduce”.

Canopy Growth Company Profile

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.