Shares of the Canopy Growth Corporation (CGC) stock were gloomy in the intraday trading session today on December 3, 2021. CGC stock price saw a downtrend of 3.47% to drop at $10.00 a share at the time of this writing. The trading volume as of this writing was 990,914, significantly lower than the average trading volume. Let’s deep dive to understand the reason behind this fall.
What’s Happening?
There is no major culprit behind the falling per share price of the Canopy stock. No press release or any announcement by the company is associated with this fall. We have seen no analysts’ downgrades or decreased per share targeted price of the CGC stock in recent times. It seems that the sentiment among investors in the social media platforms like Reddit, Stock Twits is not positive which is causing a drop in the per-share price. So, what do you need to know now? Let’s discuss some recent events of this stock.
Recent Announcement by CGC stock:
On November 29, 2021, CGC stock did announce the changes in its Executive Management Committee. According to the announcement, Bill Newlands stepped down from the Canopy’s board of directors. Bill is the major investor of the company. Garth Hankinson, the CFO of Constellation Brands replaced Bill Newlands. Moreover, Mike Lee, Executive Vice President, and Chief Financial Officer, and Rade Kovacevic, President, and Chief Product Officer are also stepping down from their respective roles. They will leave the company on December 31, 2021. CGC stock is now looking for individuals externally for both roles.
Financial View of CGC stock:
According to second-quarter fiscal 2022 results, CGC stock generated $131 million in net revenue which represents a decline of 3% as compared to Q2 FY2021. The cannabis revenue of $95 million increased by 1% as compared to Q2 FY2021.CGC stock reported a gross margin of 54% in the recently reported quarter as compared to 19% in the same tenure of the previous year. The stock reported an adjusted EBITDA loss of $163 million in the recently reported quarter. By the end of the quarter, the company had $2.0 billion in cash and short-term investments.
Conclusion:
Things are not working well for Canopy stock as far as market sentiment is concerned. Investors eyeing this stock need to do great research before adding this stock to their portfolio
