Investors Buy Large Volume of Call Options on Canopy Growth (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) saw unusually large options trading activity on Monday. Stock traders bought 26,960 call options on the company. Thisrepresentsanincreaseof158% compared to the typical daily volume of 10,434 call options.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP bought a new stake in Canopy Growth in the fourth quarter worth approximately $41,000. TD Asset Management Inc grew its position in Canopy Growth by 47.3% in the first quarter. TD Asset Management Inc now owns 112,721 shares of the company's stock worth $104,000 after acquiring an additional 36,211 shares in the last quarter. Mackenzie Financial Corp grew its stake in 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 buying an additional 18,202 shares during the last quarter. Centiva Capital LP grew its stake in Canopy Growth by 133.1% in the 4th quarter. Centiva Capital LP now owns 124,155 shares of the company's stock valued at $340,000 after buying an additional 70,884 shares during the last quarter. Finally, Tidal Investments LLC lifted its position in Canopy Growth by 12.5% during the 4th quarter. Tidal Investments LLC now owns 2,263,873 shares of the company's stock worth $6,203,000 after acquiring an additional 251,659 shares during the last quarter. Institutional investors and hedge funds own 3.33% of the company's stock.

Canopy Growth Price Performance

Shares of NASDAQ CGC traded up $0.20 during midday trading on Monday, reaching $1.45. The company's stock had a trading volume of 30,996,085 shares, compared to its average volume of 8,522,626. The company has a current ratio of 3.12, a quick ratio of 2.10 and a debt-to-equity ratio of 0.62. The company has a 50 day moving average price of $1.23 and a 200 day moving average price of $1.36. Canopy Growth has a one year low of $0.77 and a one year high of $7.21. The company has a market cap of $296.85 million, a price-to-earnings ratio of -0.47 and a beta of 0.67.

Canopy Growth (NASDAQ:CGC - Get Free Report) last released its quarterly 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. Canopy Growth had a negative net margin of 155.76% and a negative return on equity of 88.26%. The business had revenue of $52.98 million for the quarter, compared to analyst estimates of $64.98 million. On average, equities research analysts expect that Canopy Growth will post -2.81 EPS for the current year.

Wall Street Analysts Forecast Growth

Separately, Piper Sandler reiterated an "underweight" rating on shares of Canopy Growth in a report on Friday, May 30th.

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.

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