Analyst: Sales Trends Under Pressure at Canopy Growth

Short sellers have been building their positions

Deputy Editor
Dec 20, 2021 at 10:11 AM
facebook X logo linkedin

The shares of Canopy Growth Corp (NASDAQ:CGC) are down 5.8% at $9.03 this morning, after Piper Sandler downgraded the equity to "underweight" from "neutral." The firm also slashed is price target to $7 from $11, with the firm noting a number of sales trends under pressure within Canopy's businesses.

The brokerage bunch was already bearish towards Canopy Growth stock coming into today. Of the 13 analysts in question, 14 carried a tepid "hold" or worse rating, while just one recommended a "strong buy." However, the 12-month consensus target price of $12.56 is a 41% premium to current levels, indicating more price-target cuts could be on CGC's horizon.

Short sellers have been piling on, as well. Short interest rose nearly 16% during the last two reporting periods, and the 37.93 million shares sold short makes up 15.1% of the stock's available float. It would take over a week to cover these bearish bets, at the stock's average pace of daily trading.

Some options traders are likely cheering the bear note one, as puts have been more popular than usual of late. This is per Canopy Growth stock's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 87% of readings in its annual range.

On the charts, the 20-day moving average has pressured the security lower the latter part of the year and is now trading at its lowest level since 2017. Headwinds have formed in the wake of some cannabis sector updates, and despite the fact that the equity snapped a four-week losing streak last week, CGC remains down  64.1% year-to-date.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI