Traders Purchase High Volume of Call Options on Canopy Growth (NASDAQ:CGC)

Canopy Growth Co. (NASDAQ:CGC) was the target of some unusual options trading activity on Tuesday. Investors purchased 46,018 call options on the company. This is an increase of 171% compared to the average volume of 17,008 call options.

Hedge Funds Weigh In On Canopy Growth

A number of hedge funds have recently modified their holdings of the business. Tidal Investments LLC acquired a new position in Canopy Growth in the first quarter valued at $21,718,000. Murchinson Ltd. acquired a new position in Canopy Growth in the first quarter valued at $13,149,000. Baader Bank Aktiengesellschaft lifted its holdings in Canopy Growth by 137.3% in the second quarter. Baader Bank Aktiengesellschaft now owns 135,275 shares of the company’s stock valued at $873,000 after buying an additional 78,275 shares during the period. Headlands Technologies LLC lifted its holdings in Canopy Growth by 36,747.5% in the second quarter. Headlands Technologies LLC now owns 117,912 shares of the company’s stock valued at $761,000 after buying an additional 117,592 shares during the period. Finally, Squarepoint Ops LLC lifted its holdings in Canopy Growth by 168.6% in the second quarter. Squarepoint Ops LLC now owns 91,227 shares of the company’s stock valued at $588,000 after buying an additional 57,262 shares during the period. Institutional investors and hedge funds own 3.33% of the company’s stock.

Canopy Growth Stock Performance

Shares of Canopy Growth stock opened at $5.04 on Thursday. Canopy Growth has a fifty-two week low of $2.76 and a fifty-two week high of $14.92. The company has a debt-to-equity ratio of 1.05, a current ratio of 2.15 and a quick ratio of 1.64. The firm has a market capitalization of $384.04 million, a P/E ratio of -0.79 and a beta of 0.86. The company’s 50 day moving average price is $4.97 and its two-hundred day moving average price is $6.90.

Canopy Growth (NASDAQ:CGC) last issued its earnings results on Friday, August 9th. The company reported ($0.37) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.31) by ($0.06). The company had revenue of $48.39 million during the quarter, compared to analyst estimates of $51.82 million. Canopy Growth had a negative net margin of 240.19% and a negative return on equity of 73.30%. On average, equities analysts forecast that Canopy Growth will post -1.42 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Separately, Piper Sandler decreased their price objective on shares of Canopy Growth from $3.00 to $2.00 and set an “underweight” rating on the stock in a research note on Tuesday, July 9th.

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.