Traders Buy High Volume of Put Options on Canopy Growth (NASDAQ:CGC)

Canopy Growth Corporation (NASDAQ:CGC) saw unusually large options trading on Monday. Traders purchased 11,855 put options on the stock. This represents an increase of 131% compared to the average volume of 5,127 put options.

Institutional Trading of Canopy Growth

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd boosted its stake in shares of Canopy Growth by 723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,595,330 shares of the company’s stock worth $5,239,000 after acquiring an additional 4,037,281 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of 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 purchasing an additional 2,011,917 shares during the last quarter. Lazard Asset Management LLC acquired a new position in shares of Canopy Growth in the 1st quarter valued at $1,716,000. Royal Bank of Canada boosted its position in shares of Canopy Growth by 1,115.6% in the 1st quarter. Royal Bank of Canada now owns 975,967 shares of the company’s stock valued at $927,000 after purchasing an additional 895,680 shares during the period. Finally, Foundations Investment Advisors LLC purchased a new position in Canopy Growth in the 4th quarter worth about $485,000. Institutional investors own 3.33% of the company’s stock.

Analyst Ratings Changes

CGC has been the subject of several research analyst reports. Weiss Ratings downgraded shares of Canopy Growth from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Wednesday. Wall Street Zen downgraded Canopy Growth from a “hold” rating to a “sell” rating in a research note on Saturday, September 5th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold”.

Canopy Growth Stock Performance

Shares of CGC traded down $0.01 during mid-day trading on Monday, reaching $0.93. 1,041,264 shares of the company’s stock traded hands, compared to its average volume of 8,056,292. The business’s 50-day moving average price is $0.96 and its 200-day moving average price is $1.01. The stock has a market capitalization of $415.60 million, a P/E ratio of -2.06 and a beta of 0.83. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.39 and a current ratio of 3.04. Canopy Growth has a 12 month low of $0.84 and a 12 month high of $2.38.

Canopy Growth (NASDAQ:CGC) last posted its quarterly earnings data on Friday, August 7th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.04) by $0.02. The business had revenue of $142.62 million during the quarter, compared to the consensus estimate of $58.21 million. Canopy Growth had a negative net margin of 65.33% and a negative return on equity of 21.91%. Equities analysts predict that Canopy Growth will post -0.1 earnings per share for the current year.

About Canopy Growth

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.