Canopy Growth Target of Unusually High 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 recipient of unusually large options trading on Tuesday. Stock traders bought 24,173 call options on the stock. This is an increase of 50% compared to the typical volume of 16,155 call options.

Insider Activity at Canopy Growth

In related news, insider Christelle Gedeon sold 16,929 shares of the business's stock in a transaction on Friday, August 22nd. The stock was 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 $641,169.12. The trade was a 4.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Over the last three months, insiders sold 27,225 shares of company stock valued at $47,915. Insiders own 0.16% of the company's stock.

Institutional Trading of Canopy Growth

Institutional investors have recently bought and sold shares of the business. Boothbay Fund Management LLC purchased a new stake in shares of Canopy Growth in the 2nd quarter valued at about $30,000. Dimensional Fund Advisors LP purchased a new stake in shares of Canopy Growth in the 4th quarter valued at about $41,000. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Canopy Growth by 81.3% in the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company's stock valued at $41,000 after purchasing an additional 14,498 shares during the last quarter. Mackenzie Financial Corp lifted its holdings in shares of Canopy Growth by 56.5% in the 1st 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 last quarter. Finally, Osaic Holdings Inc. increased its position in Canopy Growth by 77.6% in the 2nd quarter. Osaic Holdings Inc. now owns 75,335 shares of the company's stock valued at $92,000 after acquiring 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 topic of a number of recent research reports. Zacks Research upgraded Canopy Growth to a "hold" rating in a research note on Tuesday, August 12th. Piper Sandler restated an "underweight" rating on shares of Canopy Growth in a research note on Friday, May 30th. One investment analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Sell".

Canopy Growth Stock Up 3.2%

NASDAQ:CGC traded up $0.05 during midday trading on Tuesday, reaching $1.44. The company had a trading volume of 14,525,390 shares, compared to its average volume of 11,332,396. The firm has a market capitalization of $344.18 million, a price-to-earnings ratio of -0.47 and a beta of 0.77. The stock's fifty day simple moving average is $1.30 and its 200-day simple moving average is $1.28. Canopy Growth has a 12-month low of $0.77 and a 12-month high of $5.80. The company has a current ratio of 3.07, a quick ratio of 2.12 and a debt-to-equity ratio of 0.59.

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

About Canopy Growth

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.

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