Cannabis Stock Shifts After Announcing Move to Nasdaq

The equity is seeing support from the ascending 30-day trendline

Digital Content Manager
Nov 4, 2020 at 11:21 AM
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The shares of Canopy Growth Corp (NYSE:CGC) are down 8.6% at $18.70 at last check, after the cannabis concern announced it would move its U.S. stock listing to the Nasdaq Composite (IXIC) from the New York Stock Exchange (NYSE) on Nov. 16 -- a move it expects will save costs. The company also is looking at the U.S. presidential election and its tight race, with hopes of marijuana decriminalization at the federal level on the line.

Digging deeper, the security has experienced its fair share of volatility this year. Shortly after the equity dropped to a March 18, three-year low of $9, the shares more than doubled during the stock's May rally. And despite sporting a year-to-date deficit of 10.6%, CGC remains healthily above the 30-day moving average -- a fresh layer of support for the shares.

There also remains plenty of room for upgrades on Canopy Growth stock. This is per the 11 of 14 in coverage carrying a tepid "hold" or worse rating heading into today.

Shorts seem to be hitting the exits, however, with plenty of pessimism still left to be unwound. Short interest is down 12% in the most recent reporting period, but the 41.32 million shares sold short still account for a whopping 18.3% of the stock's available float. In other words, it would take more than eight days to buy back these bearish bets, at the equity's average pace of daily trading.  

Lastly, the security's Schaeffer's Volatility Scorecard (SVS) ranks high at 83 out of 100, meaning CGC has tended to exceed these expectations during the past year -- a boon for premium buyers.

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