Last Updated: January 11, 2023
In recent years, there have been numerous studies exploring the health benefits of marijuana. The political and social acceptance has also evolved. Many countries have legalized the recreational use of marijuana. So, the legal cannabis US industry is collecting a lot of attention from financial investors.
Canopy Growth Corp. is an example of a young company with a huge voice, which financial investors hear. Not only does the company provide some of the most popular cannabis products, but it’s also pursuing research and science to validate those brands and promote continued progress in the cannabis industry.
Canopy Growth describes itself as a multi-faceted cannabis company with a strong investment in the brand, market, and product differentiation. It believes in the power of cannabis to improve people’s lives. And if you believe in the power of Canopy to enhance your investment portfolio, then you are on the right page. Stay with us, and we will tell you all about how to buy Canopy Growth stock.
About the Company
Canopy Growth Corp. (CGC) is a Canadian company founded by Bruce Linton and Chuck Rifici in 2013. The company produces, distributes, and sells various cannabis products for medical and recreational use.
Canopy Growth, then known as Tweed Marijuana Inc, first listed its shares on April 4, 2014, on the Toronto Stock Exchange through a reverse takeover of a capital pool company. The shares started trading under the ticker symbol “WEED” at an opening price of C$4.60.
On May 24, 2018, the Canopy Growth Corp became the first Canadian cannabis producer to list on the New York Stock Exchange (NYSE). Trading under the “CGC” ticker symbol, the shares opened at $30.85. But since November 13, 2020, Canopy Growth stocks have been changing hands on NASDAQ, where the company’s US ticker symbol remains “CGC”.
Canopy Growth Corporation stocks truly started to glow in the second half of 2018 because of Canada’s national legalization of recreational marijuana use. The company quickly became one of the hottest in the cannabis industry, and the number of Canopy Growth investors grew amid the anticipation of a bright future for its stocks.
Should You Buy Canopy Growth Stock?
Let’s find out together about the Canopy Growth facts and decide whether the stock is a good buy or not.
Canopy Growth stock performance
Canopy Growth was investors’ favorite star back in the days when Canada’s medical cannabis market thrived. Many became very rich for a while. Canopy’s shares gained more than 500% at one point in 2018. And now, market watchers say CGC stock is set for a comeback after its failure over the last two years.
According to Canopy Growth’s stock history, the all-time closing price high was $56.89 on October 15, 2018. In the 52 weeks ending April 4, 2022, the highest price reached by CGC stock was $31.83, and the lowest price was $5.70.
Canopy Growth stock forecast
The 10 Wall Street analysts offering 12-month price targets for Canopy Growth in April 2022 expected an average price target of $7.98 with a high forecast of $13.49 and a low forecast of $5.95.
From the company’s financial results for Q2 2022 ended September 30, 2021, we singled out some important highlights:
- Canopy Growth’s net earnings were equal to a loss of $16 million, which is an $80 million improvement from the same period a year ago.
- The adjusted EBITDA loss was $163 million, which is a $77 million wider loss versus Q2 2021. The figure was a result of lower sales, and a decline in gross margins, partially offset by the decrease in total selling, general and administrative expenses.
- Free cash flow was an outflow of $101 million, a 47% decrease year-on-year.
If you’re considering a Canopy Growth investment, these facts are of great importance. It’s also of note that Canopy Growth doesn’t pay dividends and has no current plan to introduce CGC stock dividends in the future.
Most CGC shareholders are optimistic about the US marijuana legalization prospects. Investors also see the recent stock price decline as a good entry opportunity.
But the sentiment is not all positive. The problem is that Canopy Growth’s profitability struggles. According to some analysts, the only reason the company hasn’t collapsed yet is Constellation Brands’ $5 million investment back in 2018.
So, is Canopy Growth a good investment? It depends on your personal preference and portfolio needs. Ultimately, if you decide to buy CGC shares, you should be aware of the risks and have an asset allocation and diversification strategy to manage the volatility.
Are you still interested in how to buy Canopy Growth stock? Then, read on for the possible ways of doing that.
How to Buy Canopy Growth Stock?
To invest in stocks means to buy shares of ownership in a public company. Whether you go through an online platform or consult a financial advisor, the process is easier than you think. So, let’s see how all of this works separately.
Directly from Canopy Growth Corporation
Many corporations allow you to buy or sell shares directly through a direct stock plan. As for the Canopy Growth Corp., the company doesn’t have a direct stock purchase plan.
Online brokers/Trading platforms
It’s easy to buy CGC stock right now. All you need is a reputable online broker with access to NASDAQ or TSX. After choosing a platform, you have to open and fund your account. Then, just enter the amount of CGC stock you want to buy and execute your order.
Last but not least, don’t forget to track your investment. That is how you optimize your portfolio.
With the power of the internet and its gigantic mass of information, your first thought probably is there is no need for a financial advisor for you to invest in Canopy Growth. Plus, the cost of a professional advisor is inevitable.
Maybe you are familiar with the company’s stock movements, but you don’t always have the time to track them non-stop. Here comes the option of hiring a financial advisor to take that responsibility.
Bear in mind that when the markets are steady, everyone does well. But what about a possible market crash? Having an expert by your side in cases like this can be of great importance for your financial world.
As Canopy Growth stock has been considered unsteady in recent years, a bit of professional advice for your investment in Canopy Growth shares feels like a match.
We hope that this guide was helpful for your interest in Canopy Growth stock.
Before investing, you need to consider the shares’ historical response to market movements. Preferably, you can also check out the trending Canopy stock forecasts. That is how you can make a decision on whether the stock is a good addition to your portfolio.
You may also be interested in:
American beer, wine, and spirits producer Constellation Brands is the biggest Canopy Growthshareholder with a 36.1% stake in the company.
Yes, as of April 2022, Canopy Growth is trading on the Toronto Stock Exchange under the WEED ticker symbol. The company also has a US listing. Once trading on the NYSE, CGC stocks could now be found on NASDAQ.
No. As of April 2022, CGC stock projections from analysts suggest that the company is currently with a hold signal.
Canopy Growth (CGC) doesn’t pay dividends and has no plans to introduce such payments in the future.
Of course, everyone can. You only need to learn how to buy Canopy Growth stock. The options are through an online trading platform or through a financial advisor. Choose the amount that you want to invest, place your order, and good luck!