What's Going On With Canopy Growth Stock Today?

Canopy Growth Corporation CGC shares are trading higher Friday. Shares of CGC have gained more than 250% over the last month.

What To Know:

Stocks in the cannabis sector have been moving on a strong upward trend after it was reported that the Department of Health and Human Services recommended that the DEA reschedule marijuana from a Schedule I substance to a Schedule III substance.

Though the DEA has not publically responded to the recommendation, the news reignited hope among cannabis companies and investors that changes to the federal regulation of cannabis may be on the horizon.

On Thursday, Canopy Growth announced that it will cease funding its BioSteel business unit in order to significantly reduce cash burn and simplify its operations.

Canopy Growth CEO David Klein commented, "Canopy Growth has marked yet another major milestone in our transformation plan, as while BioSteel's business has shown significant year-over-year revenue growth, and we believe the brand remains an attractive asset, it does not align with Canopy Growth's cannabis focused asset-light strategy."

"We have repeatedly demonstrated that we will take decisive action to enhance our profitability and ensure we are focused and positioned to be a leader in the North American cannabis sector."

Shares of CGC are up on heavy trading volume. According to data from Benzinga Pro, more than 69.6 million shares have been traded in the session, compared to the stock's 100-day average of 47.591 million shares.

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CGC Price Action: According to Benzinga Pro, Canopy Growth shares are up 14% at $1.43 at the time of publication.

Image: Christophe Lemiesz from Pixabay