What's Going On With Canopy Growth Stock After Earnings?

Canopy Growth Corporation CGC shares are down Friday after the company reported its first-quarter financial results. Here's a look at the details from the report.

The Details:

Canopy Growth reported net revenue declined by 13% to $48.193 million in the first quarter driven mostly by the impact of divested businesses. 

Canada cannabis net revenue was $27.66 million, a decrease of 6% year-over-year, with record Canada medical cannabis net revenue offset by lower adult-use cannabis net revenues. Canada medical cannabis net revenue increased 20% year-over-year, driven in part by strong demand for high-margin Spectrum Therapeutics products and the broader assortment of products available through the online platform.

International markets cannabis net revenue declined 1% from the same period last year, with growth in high-margin Poland offset by a decline in Australia. 

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“The fundamentals of our business continue to strengthen, and our focus on profitable revenue generation is yielding clear results as we set the stage for growth in the second half of fiscal 2025. With our core businesses delivering adjusted EBITDA profitability and primed for growth, paired with Canopy USA’s positioning to benefit from near-term market opportunities in the U.S., Canopy Growth is advancing rapidly and is well established for multi-market cannabis leadership," said David Klein, CEO of Canopy Growth. 

According to data from Benzinga Pro, Canopy Growth shares are trading below the stock’s 50-day moving average of $7.11 and 14.09% of shares are being sold short. 

Will CGC Stock Go Up?

When trying to assess whether or not Canopy Growth will trade higher from current levels, it's a good idea to take a look at analyst forecasts.

Wall Street analysts have an average 12-month price target of $2 on Canopy Growth. In the last month, no analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Canopy Gwth have performed in recent history.

Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Canopy Growth is 44.47% up year-to-date. The average analyst price target suggests the stock could have further downside ahead.

For a broad overview of everything you need to know about Canopy Gwth, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.

CGC Price Action: According to Benzinga Pro, Canopy Growth shares are down 7.08% at $6.43 at the time of publication Friday.

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