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

Key Points

• On Monday, investors purchased 26,960 call options for Canopy Growth, a 158% increase compared to its typical daily volume.
• Canopy Growth's recent quarterly earnings revealed a loss of ($0.14) EPS, exceeding analysts' expectations but resulting in a negative net margin of 155.76%.
• Institutional investors have shown increased interest, with TD Asset Management raising its stake by 47.3% and Centiva Capital increasing its stake by 133.1% in recent quarters.

Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) was the recipient of unusually large options trading on Monday. Traders acquired 26,960 call options on the stock. Thisrepresentsanincreaseofapproximately158% compared to the typical volume of 10,434 call options.

Canopy Growth Stock Performance

NASDAQ CGC traded down $0.19 on Friday, reaching $1.30. The stock had a trading volume of 25,245,707 shares, compared to its average volume of 20,055,266. The company has a debt-to-equity ratio of 0.59, a quick ratio of 2.10 and a current ratio of 3.07. Canopy Growth has a 12-month low of $0.77 and a 12-month high of $7.12. The business's 50-day moving average price is $1.24 and its 200 day moving average price is $1.35. The stock has a market cap of $311.81 million, a P/E ratio of -0.43 and a beta of 0.67.

Canopy Growth (NASDAQ:CGC - Get Free Report) last issued its quarterly earnings data on Friday, August 8th. The company reported ($0.14) earnings per share for the quarter, beating analysts' consensus estimates of ($0.15) by $0.01. Canopy Growth had a negative return on equity of 89.93% and a negative net margin of 155.76%. The company had revenue of $52.98 million during the quarter, compared to analysts' expectations of $64.98 million. As a group, equities analysts expect that Canopy Growth will post -2.81 earnings per share for the current year.

Institutional Investors Weigh In On Canopy Growth

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Two Sigma Securities LLC grew its holdings in Canopy Growth by 4.4% during the second quarter. Two Sigma Securities LLC now owns 280,852 shares of the company's stock worth $343,000 after acquiring an additional 11,942 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in Canopy Growth by 81.3% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company's stock worth $41,000 after acquiring an additional 14,498 shares during the period. Dimensional Fund Advisors LP acquired a new position in Canopy Growth during the fourth quarter worth $41,000. Mackenzie Financial Corp grew its holdings in Canopy Growth by 56.5% during the first quarter. Mackenzie Financial Corp now owns 50,413 shares of the company's stock worth $47,000 after acquiring an additional 18,202 shares during the period. Finally, Boothbay Fund Management LLC acquired a new position in Canopy Growth during the second quarter worth $30,000. Hedge funds and other institutional investors own 3.33% of the company's stock.

Wall Street Analysts Forecast Growth

CGC has been the subject of several recent analyst reports. Piper Sandler restated an "underweight" rating on shares of Canopy Growth in a research note on Friday, May 30th. Zacks Research upgraded Canopy Growth to a "hold" rating in a research note on Tuesday.

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.