Canopy Growth Target of Unusually Large Options Trading (NASDAQ:CGC)

Key Points

• Canopy Growth experienced a significant surge in options trading, with 24,173 call options purchased, marking a 50% increase compared to typical trading volumes.
• In insider trading news, Christelle Gedeon sold 16,929 shares at an average price of $1.74, resulting in a 4.39% decrease in their ownership stake.
• Analysts have mixed ratings on Canopy Growth, with one upgrading the stock to "hold" while others maintain a "sell" rating, leading to an average rating of "sell" across reports.

Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) was the target of unusually large options trading activity on Tuesday. Stock investors bought 24,173 call options on the company. This represents an increase of 50% compared to the typical daily volume of 16,155 call options.

Canopy Growth Price Performance

Shares of CGC stock traded down $0.01 on Friday, reaching $1.37. 9,894,417 shares of the company were exchanged, compared to its average volume of 21,992,474. The company has a market cap of $328.59 million, a price-to-earnings ratio of -0.45 and a beta of 0.77. The business has a 50-day moving average price of $1.31 and a 200 day moving average price of $1.28. The company has a debt-to-equity ratio of 0.59, a quick ratio of 2.12 and a current ratio of 3.07. Canopy Growth has a 1 year low of $0.77 and a 1 year high of $5.80.

Canopy Growth (NASDAQ:CGC - Get Free Report) last posted its quarterly earnings results on Friday, August 8th. The company reported ($0.14) earnings per share for the quarter, topping analysts' consensus estimates of ($0.15) by $0.01. The firm had revenue of $52.98 million for the quarter, compared to analyst estimates of $64.98 million. Canopy Growth had a negative net margin of 155.76% and a negative return on equity of 89.93%. Equities research analysts forecast that Canopy Growth will post -2.81 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Christelle Gedeon sold 16,929 shares of the stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $1.74, for a total transaction of $29,456.46. Following the transaction, the insider directly owned 368,488 shares in the company, valued at approximately $641,169.12. This trade represents a 4.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders have sold 27,225 shares of company stock worth $47,915 in the last 90 days. 0.16% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Canopy Growth

Large investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP purchased a new stake in Canopy Growth during the 4th quarter worth approximately $41,000. Boothbay Fund Management LLC purchased a new stake in Canopy Growth during the 2nd quarter worth approximately $30,000. Wealth Enhancement Advisory Services LLC increased its stake in Canopy Growth by 81.3% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company's stock worth $41,000 after buying an additional 14,498 shares during the period. Mackenzie Financial Corp increased its stake in Canopy Growth by 56.5% in the first quarter. Mackenzie Financial Corp now owns 50,413 shares of the company's stock valued at $47,000 after purchasing an additional 18,202 shares during the period. Finally, Osaic Holdings Inc. increased its stake in Canopy Growth by 77.6% in the second quarter. Osaic Holdings Inc. now owns 75,335 shares of the company's stock valued at $92,000 after purchasing an additional 32,927 shares during the period. 3.33% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CGC has been the subject of several recent research reports. Piper Sandler reissued an "underweight" rating on shares of Canopy Growth in a report on Friday, May 30th. Zacks Research upgraded shares of Canopy Growth to a "hold" rating in a research report on Tuesday, August 12th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Sell".

Canopy Growth Company Profile

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments.