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

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

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 Stock Performance

Canopy Growth stock traded up $0.05 during mid-day trading on Friday, reaching $1.13. 7,689,838 shares of the company’s stock were exchanged, compared to its average volume of 14,837,630. The business’s fifty day simple moving average is $1.25 and its 200 day simple moving average is $1.29. The company has a quick ratio of 4.23, a current ratio of 5.50 and a debt-to-equity ratio of 0.31. Canopy Growth has a one year low of $0.77 and a one year high of $2.38. The firm has a market capitalization of $414.51 million, a PE ratio of -0.57 and a beta of 0.56.

Hedge Funds Weigh In On Canopy Growth

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Tidal Investments LLC grew its position in Canopy Growth by 31.5% during the second quarter. Tidal Investments LLC now owns 5,033,793 shares of the company’s stock valued at $6,141,000 after buying an additional 1,204,530 shares during the period. Millennium Management LLC grew its position in shares of Canopy Growth by 196.9% during the 3rd quarter. Millennium Management LLC now owns 3,137,696 shares of the company’s stock valued at $4,579,000 after acquiring an additional 2,080,994 shares during the period. Two Sigma Investments LP purchased a new stake in shares of Canopy Growth during the 3rd quarter worth approximately $1,767,000. Jones Financial Companies Lllp raised its holdings in shares of Canopy Growth by 10,308.3% in the 1st quarter. Jones Financial Companies Lllp now owns 969,533 shares of the company’s stock worth $882,000 after purchasing an additional 960,218 shares during the period. Finally, UBS Group AG lifted its stake in Canopy Growth by 32.1% in the third quarter. UBS Group AG now owns 575,107 shares of the company’s stock valued at $840,000 after purchasing an additional 139,725 shares during the last quarter. 3.33% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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