Canopy shares: price, dividends and performance

James Rodriguez James Rodriguez  updated on 2022-06-15

Invest in the stock market with Qtrade

Save almost $500 in fees using the code: 50TRADESFREE

Sign-up

For investors interested in the cannabis sector, Canopy Growth stock remains one of the best values today.

How much can you make with Canopy stock?

Get up-to-date and precise information on Canopy stock with its current price, dividend yield, analysis and our opinion.

This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.

Want to buy shares in Canopy: Our key take-aways

Stock exchange: TSX

  • Stock Index: S&P/TSX 60
  • Dividend 2021: $0
  • Dividend forecast 2022: $0
  • 1 year performance: -73.19%

Should I buy Canopy stock?

The cannabis industry has been booming in recent years and Canopy Growth appears to be one of the most promising stocks in the industry.

This stock will appeal to investors who have a growth strategy and are looking for capital gains over the medium to long-term. The company does not currently pay any dividends to shareholders and is therefore not a yield stock.

However, current analysis suggests that the share price can still rise, as shown by the share's performance in March 2022 with a gain of 19.80%.

Learn all about stocks and get investing advice online from The Motley Fool.

Investment recommendations and the best stock picks from The Motley Fool Stock Advisor

Sign up today

How can I buy shares in Canopy ?  

To buy Canopy on the stock market:

  1. Find an online broker offering stock investments.
  2. Open your trading account by filling out a simple form.
  3. Deposit funds into your account.
  4. Search for the stock
  5. Place a buy order to add Canopy to your stock portfolio.

To invest in Canopy, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.

How much are Canopy shares?

See price chart below to follow Canopy stock price in real time.

Ready to invest in Canopy? Shop for through Qtrade.

Invest in the stock market with Qtrade

Save almost $500 in fees using the code: 50TRADESFREE

Sign-up

Why Canopy shares could go up:

Canopy Growth currently enjoys several strengths and opportunities that could be interpreted as a driver for its stock price. Here are the main ones:

  • Strong brand identity: in addition to having a broad geographic reach, Canopy Growth has a strong consumer identity, which allows it to steadily grow its consumer base.
  • A developing product portfolio: The company also focuses on the continuous development of new products, which allows it to maintain a strong market position and improve the loyalty of its existing customers.
  • A strong distribution network: The group also has a solid distribution network that allows it to be present in many states and guarantees a high availability of its products.
  • Efficient cost structure: Canopy Growth has an efficient cost structure that allows it to produce at low prices and market its products at competitive rates.
  • Financial strength: The group also has a strong financial position and has made profits for at least five consecutive years.
  • Strong cash flow: Due to its strong margins, Canopy Growth currently enjoys cash flow that will likely allow it to make investments that will boost its future growth.

Why Canopy shares could go down:

The group also has some weaknesses that should be taken into account as data in favour of a decline in its stock price including:

  • Increasing competition: Although Canopy Growth was one of the first players in the cannabis industry in the world, it is currently facing more and more aggressive competition from other companies.
  • Complex international expansion: Canopy Growth's international expansion opportunities are limited due to legislation in many countries regarding cannabis use.
  • Negative connotations of cannabis: Cannabis also has a negative reputation in the minds of many consumers, which may hinder Canopy's sales.
  • Slowing market growth: Finally, after a few years of strong growth, the cannabis market is currently experiencing a slight slowdown, which is also slowing Canopy Growth's growth.

Can I buy Canopy stock online?

Yes! You can buy Canopy shares online. For many buys this is the best way to do it. Here's why:

  • The commissions are lower
  • You can choose your own investments
  • You benefit from analysis and decision support tools
  • You can invest in stocks directly or through derivatives like ETFs.

Invest in the stock market with Qtrade

Save almost $500 in fees using the code: 50TRADESFREE

Sign-up

How can I sell my Canopy shares? 

Regulated savings vehicles in Canada do not permit short selling of Canopy Growth securities. So you'll need to own the stock to sell it back through an online order.

But if you don't own Canopy Growth shares and want to bet on a decline in the stock's price, you can open a margin account that allows short selling or use derivatives such as options or CFDs to speculate on the downside.

What investment vehicles in Canada can hold Canopy stock? 

Canopy shares can be placed in several different savings vehicles including" 

  • RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
  • TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
  • Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
  • Cash accounts: This account allows you to trade stocks on North American markets only. 

Of course, it is possible to add Canopy Growth shares individually to your stock portfolio. To do so, you simply choose the quantity of shares you wish to buy and place your purchase order on your online brokerage platform.

You can also choose to invest with a stronger diversification strategy on an ETF or mutual fund that incorporates this stock as well as other stocks in this sector.

Canopy share price history over 10 years:

Time periodGrowthHighLow
1 week22.37%10.958.60
1 month19.80%10.957.22
3 months-3.13%12.187.22
6 months-41.74%19.987.22
1 year-73.19%41.747.22
3 years-81.87%71.607.22
5 years-1.37%76.686.58
Canopy 10-year performance

Canopy dividends and payment dates

In 2021, Canopy Growth did not pay any dividends to its shareholders.

The company has never paid any dividend since its listing and has no plans to do so in 2022.

The reason for this lack of shareholder remuneration is to be found in the group's strategy, which aims above all to promote strong growth by reinvesting profits in research and development or in strategic investment operations.

What is the dividend yield for Canopy over the last 10 years?

The yield on Canopy shares is obtained by dividing the annual dividend by the annual average price.

A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.

Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year

The 10-year average return = Sum of annual returns ÷ 10

What analysts are saying about Canopy stock:

A critical analysis of Canopy stock:

Fundamental analysis of Canopy Growth stock is currently providing several interesting bullish signals on the stock with the following indicators:

  • Upward estimates: In recent months, analysts have repeatedly revised upward their estimates for profitability in the coming years.
  • Upwardly revised EPS forecast: Earnings per share have also been revised upwardly with respect to forecasts.
  • High valuation: The company's valuation appears to be high in terms of enterprise value.
  • No dividend: The lack of a dividend to Canopy Growth shareholders is also a factor that can be considered a deterrent to buying this stock.
  • Low average price target: Although the stock still seems to have room to grow in the medium and long-term, the average price target of analysts has recently been revised downwards.
  • Diverging analyses: analysts' forecasts are currently diverging, which may reflect a certain difficulty in evaluating the company and its activities.
  • Publications below expectations: Finally, and historically, the group has often published results below market expectations.

A technical analysis of Canopy stock:

The technical analysis of Canopy Growth stock over the long-term seems to be sending pessimistic signals with the following indicators:

  • The RSI is currently at 37.73, which sends a relatively strong buy signal on this stock.
  • The short, medium and long-term stochastics are sending a strong oversold signal on this stock.
  • As for the MACD indicator, it is currently in the negative zone at -7.24, which also sends a sell signal.
  • The simple and exponential moving averages are all sending a sell signal over all time frames except for the MA200 which is sending a buy signal.

Who is Canopy?

Canopy Growth Corporation is a Canadian company that operates in the cannabis industry.

More precisely, this company has diversified activities in cannabis, hemp and cannabis-based devices. It offers a wide range of cannabis and hemp products, as well as consumer and recreational products, and medical products with a portfolio of distinct brands in Canada.

Canopy Growth's activities can be divided into two main sectors:

  • Global Cannabis
    • : This segment involves both the production, distribution and sale of a wide range of applicable domestic and international products.
  • Other Products
    • : This segment covers other consumer products with the production, distribution and sale of consumer products including vaporizers, beauty products, skin care, wellness and sleep products, beverages, proteins, gums and mints for sports nutrition and other products.

The group currently employs 3,259 people and the geographical distribution of its sales is as follows

  • Canada with 60.2% of sales
  • Germany with 21.3% of sales
  • The United States with 11.9% of sales
  • The rest of the world with 6.6% of sales

Who are Canopy’s competitors?

The Canopy Growth Group operates in a rapidly expanding and increasingly competitive industry. Its main current competitors are:

  • Tilray Brands: this global company specializes in pharmaceuticals, cannabis products and consumer packaged goods. It was incorporated in the United States and also has operations elsewhere in the world, including Canada, Australia and New Zealand.
  • Sudden Growers: This other company specializes in the production and sale of cannabis products for the Canadian market. It produces and sells inhalable products under different brands.
  • Aurora Cannabis: this Canadian company is also specialized in the production and sale of cannabis for both medical and recreational use. It is currently the leader in this sector in North America.
  • Green Thum Industries: GTI is a Canadian company that produces and sells cannabis in the form of packaged consumer products. It manufactures a wide range of branded cannabis products including edibles and topicals.

Who are Canopy’s partners?

While Canopy Growth faces intense competition in its industry, it fortunately has some strategic allies. Here are some of its recent partners:

  • Couche-Tard Food: The two companies recently joined forces to allow Canopy to expand its distribution network by leveraging the convenience store and gas station operator's extensive presence in Canada.
  • Centric Health: Another strategic partnership has been established with this company for a multi-year medical cannabis supply and services agreement.
  • Uber Eats: The giant Uber Eats has also signed an agreement with Canopy Growth to offer its Ontario customers a new service for legal cannabis delivery.
  • Constellation Brands: Multinational Constellation Brands recently increased its stake in Canopy Growth with a C$5 billion investment.
  • Drake: Finally, Aubrey Drake Graham, known as "Drake" has also partnered with Canopy Growth to help launch More Life Growth Company, a licensed cannabis producer in Toronto.