Shares in Canopy Growth Corporation (CGC) dropped nearly 2% in market trading after the chairman and CEO Bruce Linton stepped down. Due to declining sales and rising losses, Constellation Brands, Inc. (STZ) and other shareholders impatient and exercised during the holidays. Stocks initially increased 2.3% in yesterday's shortened trading session before giving up on some of these gains during the pre-market session.
Analysts have mixed statements about the move to Luston. Stifel analyst W. Andrew Carter said that Linton's vision and founder status would be "very missed," but maintained a buy rating in the warehouse. Bryan Garnier analyst Nikolaas Faes downgraded the Canopy Growth stock to Neutral from Buy and lowered his price target from C $ 85 to C $ 60 per. Share after shakeup.
Mark Zekulin agreed to become the sole director of the company and will work with the board to look for a new leader. Rade Kovacevic, a member of the Canadian team and recreational strategy, will assume the role of the president. John Bell was appointed chairman of the board prior to the next election in September this year.
Traders should look for a collapse from trendline support of around $ 38.00 against reaction rates of about $ 28.00 from earlier this year. If the stock recovers from these levels, traders should look for a retreat of upper trend line resistance and 200-day moving average of $ 42.20. A breakout from these levels can lead to a retest of past heights of around $ 46.00 or $ 52.00 per day. Share.
The author has no position in the mentioned stock (s) except through passively managed index funds.