CGC Higher on New Cannabis Beverage

The equity is up 20% for the quarter

Digital Content Manager
Jun 16, 2020 at 2:52 PM
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The shares of Canopy Growth Corp (NYSE: CGC) are up 4.2% to trade at $17.46 this afternoon, after the Canadian cannabis company launched Deep Space, a full-flavored cannabis beverage with 10 mg of active compound THC per can. The beverage is currently available for purchase on provincial e-commerce platforms and select retailers, such as Tweed and Tokyo Smoke. 

CGC has made an impressive comeback on the charts, nearly doubling from its mid-March, two-year low of $9. The equity was able to find support at the $16 mark last week, and is now sporting a healthy 20% lead for the quarter. 

Despite the positive price action, analysts are still hesitant toward CGC, with 12 of the 16 in coverage calling it a "hold" or worse and four considering it a "strong buy." In simpler terms, there looks to be plenty of room for a round of upgrades on CGC in the near future.

 

Short interest is building of late, up 15.3% in the past two reporting periods. The 45.8 million shares sold short represent roughly 21% of the stock's available float, and nearly six and a half times its average daily trading volume. 

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