Investors Purchase Large Volume of Canopy Growth Call Options (NASDAQ:CGC)

Key Points

• Canopy Growth Corporation experienced a significant surge in call options trading, with 37,408 call options traded, marking a 94% increase from its average volume.
• Despite the uptick in trading activity, the stock currently holds an average rating of "Strong Sell" from analysts, with multiple ratings indicating a hold or sell condition.
• Insider trading activity includes CEO Luc Mongeau purchasing 27,469 shares, while another insider sold 16,929 shares, highlighting varying confidence among executives regarding the company's future.

Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) saw unusually large options trading activity on Thursday. Stock traders acquired 37,408 call options on the stock. This is an increase of approximately 94% compared to the average volume of 19,295 call options.

Analyst Ratings Changes

CGC has been the subject of several research reports. Weiss Ratings restated a "sell (e+)" rating on shares of Canopy Growth in a research note on Wednesday. Zacks Research upgraded shares of Canopy Growth to a "hold" rating in a research note on Tuesday, August 12th. One research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Strong Sell".

Insider Activity at Canopy Growth

In related news, CEO Luc Mongeau bought 27,469 shares of the company's stock in a transaction on Monday, September 22nd. The shares were bought at an average price of $1.82 per share, with a total value of $49,993.58. Following the transaction, the chief executive officer owned 812,368 shares in the company, valued at approximately $1,478,509.76. This trade represents a 3.50% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Christelle Gedeon sold 16,929 shares of the business's stock in a transaction that occurred 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 sale, the insider directly owned 368,488 shares in the company, valued at approximately $641,169.12. This represents a 4.39% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 50,300 shares of company stock worth $84,373. 0.16% of the stock is owned by insiders.

Institutional Investors Weigh In On Canopy Growth

Hedge funds and other institutional investors have recently bought and sold shares of the company. Boothbay Fund Management LLC acquired a new stake in Canopy Growth during the second quarter worth about $30,000. Wealth Enhancement Advisory Services LLC increased its position in shares of Canopy Growth by 81.3% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company's stock valued at $41,000 after acquiring an additional 14,498 shares during the last quarter. Mackenzie Financial Corp increased its position in shares of Canopy Growth by 56.5% during the first quarter. Mackenzie Financial Corp now owns 50,413 shares of the company's stock valued at $47,000 after acquiring an additional 18,202 shares during the last quarter. Osaic Holdings Inc. increased its position in shares of Canopy Growth by 77.6% during the second 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 last quarter. Finally, TD Asset Management Inc increased its position in shares of Canopy Growth by 47.3% during the first quarter. TD Asset Management Inc now owns 112,721 shares of the company's stock valued at $104,000 after acquiring an additional 36,211 shares during the last quarter. 3.33% of the stock is currently owned by institutional investors and hedge funds.

Canopy Growth Stock Performance

NASDAQ CGC traded up $0.11 during mid-day trading on Thursday, reaching $1.64. 32,227,821 shares of the stock were exchanged, compared to its average volume of 12,836,114. The business's 50 day moving average is $1.39 and its 200-day moving average is $1.31. Canopy Growth has a 1 year low of $0.77 and a 1 year high of $5.80. The company has a market capitalization of $392.15 million, a P/E ratio of -0.54 and a beta of 0.71. 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 (NASDAQ:CGC - Get Free Report) last posted its quarterly earnings data on Friday, August 8th. The company reported ($0.14) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.15) by $0.01. The business had revenue of $52.98 million for the quarter, compared to the consensus estimate of $64.98 million. Canopy Growth had a negative net margin of 155.76% and a negative return on equity of 89.93%. On average, equities research analysts forecast that Canopy Growth will post -2.81 EPS 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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