Canopy Growth Sees Unusually Large Options Volume (NASDAQ:CGC)

Key Points

• Put-option activity surged: Traders purchased 11,855 put options on Canopy Growth, about 131% above the average volume of 5,127.
• Shares remained under pressure: CGC fell 1% to $0.93, near its 52-week low of $0.84, while the company reported a negative net margin and analysts expect a full-year loss.
• Analyst sentiment is mixed: Although Canopy Growth exceeded quarterly earnings and revenue estimates, recent rating downgrades contributed to a consensus “Hold” rating; institutional investors own 3.33% of the stock.

Canopy Growth Corporation (NASDAQ:CGC - Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock traders acquired 11,855 put options on the stock. This is an increase of approximately 131% compared to the average volume of 5,127 put options.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd grew its stake in Canopy Growth by 723.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 4,595,330 shares of the company's stock worth $5,239,000 after purchasing an additional 4,037,281 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in Canopy Growth by 19,571.2% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 2,022,197 shares of the company's stock valued at $2,305,000 after buying an additional 2,011,917 shares during the period. Lazard Asset Management LLC purchased a new position in Canopy Growth during the first quarter valued at $1,716,000. Royal Bank of Canada boosted its holdings in shares of Canopy Growth by 1,115.6% during the 1st quarter. Royal Bank of Canada now owns 975,967 shares of the company's stock valued at $927,000 after buying an additional 895,680 shares in the last quarter. Finally, Foundations Investment Advisors LLC purchased a new stake in shares of Canopy Growth in the 4th quarter worth about $485,000. Institutional investors own 3.33% of the company's stock.

Canopy Growth Trading Down 1.0%

CGC stock traded down $0.01 during midday trading on Monday, hitting $0.93. The company had a trading volume of 1,041,264 shares, compared to its average volume of 8,056,292. The company has a current ratio of 3.04, a quick ratio of 2.39 and a debt-to-equity ratio of 0.31. Canopy Growth has a 52 week low of $0.84 and a 52 week high of $2.38. The stock's 50 day moving average price is $0.96 and its 200 day moving average price is $1.01. The stock has a market cap of $415.60 million, a price-to-earnings ratio of -2.06 and a beta of 0.83.

Canopy Growth (NASDAQ:CGC - Get Free Report) last posted its earnings results on Friday, August 7th. The company reported ($0.02) earnings per share for the quarter, topping analysts' consensus estimates of ($0.04) by $0.02. Canopy Growth had a negative net margin of 65.33% and a negative return on equity of 21.91%. The company had revenue of $142.62 million during the quarter, compared to analyst estimates of $58.21 million. As a group, equities research analysts expect that Canopy Growth will post -0.1 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on the stock. Weiss Ratings downgraded shares of Canopy Growth from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday. Wall Street Zen cut shares of Canopy Growth from a "hold" rating to a "sell" rating in a research report on Saturday, September 5th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold".

Canopy Growth Company Profile

Canopy Growth Corporation is a cannabis company headquartered in Smiths Falls, Ontario, Canada. Founded in 2013 as Tweed Marijuana Inc, the company adopted the Canopy Growth name in 2015 and has developed a portfolio of cannabis brands serving both adult-use and medical markets.

Canopy Growth's products include dried cannabis flower, pre-rolls, cannabis oils, softgels, edibles, beverages and vaporization products. Its brand portfolio has included Tweed, 7ACRES, Doja, Deep Space and other cannabis brands, as well as Storz & Bickel vaporization products.

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