Stock Traders Buy Large Volume of Canopy Growth Call Options (NASDAQ:CGC)

Canopy Growth Corporation (NASDAQ:CGC) was the target of unusually large options trading activity on Thursday. Traders bought 37,408 call options on the stock. This represents an increase of 94% compared to the average daily volume of 19,295 call options.

Canopy Growth Stock Performance

Shares of NASDAQ:CGC opened at $1.65 on Friday. The company has a market capitalization of $395.75 million, a price-to-earnings ratio of -0.54 and a beta of 0.71. The firm’s 50 day simple moving average is $1.40 and its 200 day simple moving average is $1.31. The company has a debt-to-equity ratio of 0.59, a current ratio of 3.07 and a quick ratio of 2.12. Canopy Growth has a fifty-two week low of $0.77 and a fifty-two week high of $5.80.

Canopy Growth (NASDAQ:CGC) last announced its quarterly earnings results 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. 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%. As a group, sell-side analysts forecast that Canopy Growth will post -2.81 earnings per share for the current year.

Insider Activity at Canopy Growth

In related news, CEO Luc Mongeau purchased 27,469 shares of the firm’s stock in a transaction that occurred on Monday, September 22nd. The stock was acquired at an average cost of $1.82 per share, for a total transaction of $49,993.58. Following the completion of the acquisition, the chief executive officer owned 812,368 shares in the company, valued at $1,478,509.76. This trade represents a 3.50% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Christelle Gedeon sold 16,929 shares of Canopy Growth stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $1.74, for a total transaction of $29,456.46. Following the completion of the sale, the insider owned 368,488 shares of the company’s stock, valued at $641,169.12. This trade represents a 4.39% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 50,300 shares of company stock valued at $84,373. 0.16% of the stock is currently owned by corporate insiders.

Institutional Trading of Canopy Growth

Hedge funds have recently modified their holdings of the company. Boothbay Fund Management LLC acquired a new stake in shares of Canopy Growth in the 2nd quarter valued at approximately $30,000. Wealth Enhancement Advisory Services LLC raised its holdings in Canopy Growth by 81.3% during the 2nd quarter. Wealth Enhancement Advisory Services LLC now owns 32,336 shares of the company’s stock worth $41,000 after buying an additional 14,498 shares during the period. Mackenzie Financial Corp raised its holdings in Canopy Growth by 56.5% during the 1st quarter. Mackenzie Financial Corp now owns 50,413 shares of the company’s stock worth $47,000 after buying an additional 18,202 shares during the period. Osaic Holdings Inc. raised its holdings in Canopy Growth by 77.6% during the 2nd quarter. Osaic Holdings Inc. now owns 75,335 shares of the company’s stock worth $92,000 after buying an additional 32,927 shares during the period. Finally, TD Asset Management Inc raised its holdings in Canopy Growth by 47.3% during the 1st quarter. TD Asset Management Inc now owns 112,721 shares of the company’s stock worth $104,000 after buying an additional 36,211 shares during the period. 3.33% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. 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 equities research analyst has rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Strong Sell”.

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.