5 Investors Betting Big on Canopy Growth (CGC) Stock
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Canopy Growth Corporation (NASDAQ:CGC) has spent most of 2022 on a downward trajectory. Despite some gains in March, it has been moving steadily downward amid macroeconomic headwinds and general market volatility. However, October has been an excellent month for the cannabis sector. Since President Joe Biden announced a nationwide pardon for those found guilty of simple marijuana possession, many cannabis stocks have finally been pushed back into the green. While the strong momentum ultimately faded, CGC stock and many of its peers have demonstrated some growth. Canopy Growth has seen an overall impressive month, outperforming its peer Sundial Growers (NYSE:SNDL).
Today, however, CGC stock is surging on some excellent news. The company has taken a significant step toward penetrating the U.S. market by consolidating several assets and shares are up about 30% on the day. Its U.S. holding company will encompass newly acquired cannabis growers and retailer Acreage (OTCMKTS:ACRHF) as well as specialists Wana Brands and Jetty. As InvestorPlace contributor David Moadel reports of Canopy’s new subsidiary:
“If Canopy Growth wants to branch out of the Canadian cannabis industry and into the U.S., it can start operations there from scratch — or, it can just set up a subsidiary company called Canopy USA and buy out an already established business like Acreage.”
Canopy Growth is clearly betting big on the U.S. market as the White House works to legalize cannabis at the federal level. But which institutional investors are still firmly behind the Canadian company as it maneuvers to gain a foothold in the U.S. Let’s take a look.
Five Investors Betting Big on CGC Stock
As InvestorPlace’s Eddie Pan notes, institutional investors “provide liquidity and support for stocks.” For this reason, it is important to track the large-scale investors betting on them.
During the second quarter, 351 funds reported ownership of CGC stock through 13F filings, 11 less than in the previous quarter. New positions have increased from 49 to 54, an increase of 10%. But the stock’s institutional put/call ratio is currently 131.58%. This implies an overall options stance that is highly bearish. Graham Capital Management holds the most PUT options with 5,294,500 while Susquehanna International Group holds the most calls with 3,857,300. However, the following funds remain highly bullish on CGC stock.
- Vanguard Group: 8,099,679 shares. Vanguard increased its position in Q2 by adding 221,627 shares.
- ETF Managers Group: 7,856,049 shares. ETF increased its CGC position during Q2 by 530,722 shares.
- Millennium Management: 3,152,591 shares. Millennium acquired its entire position in Q2.
- Morgan Stanley (NYSE:MS): 2,839,979 shares. Morgan Stanley increased its CGC holdings in Q2 by 919,871 shares.
- Bank of America (NYSE:BAC): 2,057,707 shares. BofA added 413,849 shares in Q2.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.