The real reason why Canopy Growth Corporation (CGC) sank -2.74% today

Canopy Growth Corporation (NYSE:CGC) is among the top losers of the stock market today, sinking -2.74% or (-0.56 points) to $19.86 from its previous close of $20.42. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 5264902 contracts so far this session. CGC shares had a relatively better volume day versus average trading capacity of 4.78 million shares, but with a 0.22 billion float and a -12.66% run over a week, it’s definitely worth keeping an eye on. CGC share price has been trading recently between $20.42 and $22.3198. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $18.82. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $52.51.

During the recent trading session for Canopy Growth Corporation (NYSE:CGC), the company witnessed their stock drop by $-3.07 over a week and tumble down $-7.61 from the price 20 days ago. When compared to their established 52-week high of $59.25, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 10/16/18. The recent low of $19.75 stood for a -66.48% since 11/10/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for CGC is set at $35.27, a figure which is below the recent 1-year high the stock witnessed.

Looking at the current readings for Canopy Growth Corporation, the two-week RSI stands at 28.16. This figure suggests that CGC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current CGC readings is similarly very revealing as it has a stochastic reading of 22.57% at this stage. This figure means that CGC share price today is being overbought.

Technical chart claims that Canopy Growth Corporation (CGC) would settle between $21.69/share to $22.95/share level. However, if the stock price goes below the $19.79 mark, then the market for Canopy Growth Corporation becomes much weaker. If that happens, the stock price might even plunge as low as $19.15 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.98. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Jefferies lowered their recommendation on shares of CGC from Hold to Underperform in their opinion released on October 11. BofA/Merrill analysts have lowered their rating of Canopy Growth Corporation (NYSE:CGC) stock from Buy to Neutral in a separate flash note issued to investors on September 27. Analysts at MKM Partners, made their first call for the equity with a Neutral recommendation, according to a research note that dated back to September 20.

CGC equity has an average rating of 2, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 2 analysts rated Canopy Growth Corporation (NYSE:CGC) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.