What's Going On With Canopy Growth Stock Today?

Canopy Growth Corporation CGC shares are trading lower Monday. The company announced Institutional Shareholder Services (ISS) has recommended that Canopy shareholders vote to approve the creation of exchangeable shares to further the advancement of Canopy USA. 

The Details:

ISS recommended that shareholders vote in favor of the amendments to the company’s articles of incorporation at the special meeting of shareholders on April 12 which would allow for the acceleration of its entry into the U.S. cannabis industry through the creation of a new U.S.-domiciled holding company, Canopy USA, LLC. 

“Support for this proposal is warranted. Although approval of this proposal would create an additional class of non-voting securities, the company determined that this proposal will help it and its shareholders remain compliant with applicable U.S. federal law,” ISS stated in its report. 

If approved, Canopy USA will hold all of the U.S. cannabis investments and enable Canopy USA to exercise rights and acquire Acreage Holdings, Inc., Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC and Lemurian, Inc. Upon Canopy USA’s acquisition of any of these U.S. THC businesses, Canopy Growth is expected to deconsolidate the financial results of Canopy USA and have a non-controlling interest in Canopy USA.

Canopy Growth shares have climbed more than 130% over the past month on Germany's new cannabis regulations and renewed optimism over potential rescheduling in the United States. However, members of the Senate Foreign Relations Committee members wrote a letter to DEA Administrator Anne Milgram last Wednesday, encouraging the agency to decline to move cannabis from Schedule I to Schedule III. 

"Any effort to reschedule marijuana must be based on proven facts and scientific evidence—not the favored policy of a particular administration—and account for our treaty obligations," the letter stated.

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CGC Stock Forecast in 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Canopy Growth, over the past 5 years, it's annualized stock performance is -54.32%, and if you assume that trend continues for another 5 years, you can expect the stock to trade at $0.16.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

CGC Price Action: According to Benzinga Pro, Canopy Growth shares are down 4.98% at $8.20 at the time of publication Monday.

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