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

Canopy Growth Corporation (NASDAQ:CGC) saw some unusual options trading activity on Friday. Stock investors purchased 43,864 call options on the stock. This is an increase of approximately 77% compared to the typical volume of 24,748 call options.

Canopy Growth Stock Performance

Shares of NASDAQ CGC opened at $1.74 on Friday. Canopy Growth has a 52-week low of $0.77 and a 52-week high of $3.18. The stock has a market capitalization of $641.12 million, a price-to-earnings ratio of -0.89 and a beta of 0.40. The company has a quick ratio of 4.23, a current ratio of 5.50 and a debt-to-equity ratio of 0.31. The stock’s fifty day simple moving average is $1.24 and its 200 day simple moving average is $1.30.

Canopy Growth (NASDAQ:CGC) last issued its quarterly earnings results on Friday, November 7th. The company reported ($0.01) EPS for the quarter, beating the consensus estimate of ($0.11) by $0.10. The business had revenue of $47.86 million during the quarter, compared to the consensus estimate of $71.82 million. Canopy Growth had a negative net margin of 113.21% and a negative return on equity of 61.97%. As a group, sell-side analysts forecast that Canopy Growth will post -2.81 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research firms recently issued reports on CGC. Wall Street Zen upgraded shares of Canopy Growth from a “sell” rating to a “hold” rating in a research report on Saturday, November 8th. Weiss Ratings restated a “sell (e+)” rating on shares of Canopy Growth in a research report on Wednesday, October 8th. Finally, Benchmark upgraded Canopy Growth from a “sell” rating to a “hold” rating in a research report on Monday, November 10th. Two equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Strong Sell”.

Insider Activity at Canopy Growth

In other news, CEO Luc Mongeau acquired 27,469 shares of the business’s stock in a transaction on Monday, September 22nd. The shares were purchased at an average price of $1.82 per share, for a total transaction of $49,993.58. Following the acquisition, the chief executive officer directly owned 812,368 shares of the company’s stock, valued at $1,478,509.76. This 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 link. Insiders have sold 23,075 shares of company stock worth $36,459 over the last 90 days. Insiders own 0.16% of the company’s stock.

Institutional Trading of Canopy Growth

Hedge funds and other institutional investors have recently modified their holdings of the company. Midwest Trust Co acquired a new position in Canopy Growth in the 3rd quarter worth about $31,000. Boothbay Fund Management LLC bought a new position in Canopy Growth during the second quarter valued at approximately $30,000. Wealth Enhancement Advisory Services LLC grew its position in Canopy Growth by 81.3% in 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 in the last quarter. Genesee Capital Advisors LLC increased its stake in shares of Canopy Growth by 166.1% during the 3rd quarter. Genesee Capital Advisors LLC now owns 40,047 shares of the company’s stock worth $58,000 after purchasing an additional 25,000 shares during the last quarter. Finally, Insigneo Advisory Services LLC raised its holdings in shares of Canopy Growth by 168.7% during the 3rd quarter. Insigneo Advisory Services LLC now owns 43,001 shares of the company’s stock valued at $63,000 after purchasing an additional 27,000 shares in the last quarter. 3.33% of the stock is currently owned by hedge funds and other institutional investors.

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.