Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has long been one of the leaders in the cannabis sector, alongside other major companies like Aurora Cannabis (NYSE: ACB) (TSX: ACB) and Aphria, Inc. (NYSE: APHA) (TSX: APHA).
CGC is down nearly 7% year-to-date in 2020 already. In addition, the stock is heavily shorted, as seen with a short float of 21.31%.
Recently, the company named David Klein, Constellation Brands’ previous CFO, as its new CEO. This appointment inspired renewed optimism in the stock, but some are still cautious regarding the company’s future.
That being said, many large institutions still have major stakes in Canopy Growth. Let’s take a look at the top five institutional shareholders of CGC.
Canopy Growth: Top 5 Institutional Shareholders
Below are the top five institutional shareholders of Canopy Growth Corp, based on data from January 31, 2020.
|About||% Total Shares Held||% Total Assets||Current Shares Held|
|Vanguard Group Inc||A registered investment advisor based in America.||1.44||0.00||5,009,339|
|Morgan Stanley – Brokerage Accounts||A multinational investment bank and financial services company based in America.||0.91||0.02||3,168,664|
|ETF Managers Group, LLC||An investment management company that serves customers in the United States.||0.76||2.18||2,637,499|
|Bank of Montreal||A Canadian multinational investment bank and financial services company based in Montreal, Quebec.||0.75||0.05||2,598,349|
|Susquehanna International Group, LLP||A privately held global trading and technology firm that offers institutional brokerage services.||0.52||0.01||1,793,728|
Canopy Growth has remained at the forefront of the legal cannabis industry for some time. However, Wall Street analysts aren’t sure how long that this will last.
A short report was recently published on CGC on February 7, 2020. The report further installs doubt in the minds of the investment community, as the pot stock correction continues forward. The report was published on smartmoneygains.com and alleges that Canopy Growth “has shades similar to that of the Sino-Forest fraud case that rocked Canada years ago,” according to the report.
While Canopy Growth might be one of the most popular stocks for cannabis investors, the company has an implied downside of 9.5% from where it closed in late January. Moreover, while CGC leads the cannabis industry in cash on hand and has a major international presence, the company is burning cash fast — losing C$265.8 million on an operating basis in Q2 2020.
Canopy Growth hasn’t yet announced when it will release its next earnings report. However, it is expected to come later this month. Investors will be waiting to hear the company’s plan to achieve profitability as its heavy spending is starting to cause concern.
Article By: Connor Beam