The best indicator for continued bullish momentum and share price stability is to see an active
resurgence of institutional investment in this sector. Canopy's S/P swings hard on a perpetual
two-sided trade.
Their market cap was how much back when....? Had to be in the multi-billions.
I just checked the market cap from Friday and it's now moving back toward the 1 billion level
(954 million). I believe I saw it around 350 million only last week.
We'll see how the rally goes this week: Canadian & US markets are closed on Friday so
it's a shorter trade week:
The 5 Biggest Buyers of Canopy Growth stock.
Institutional Investors were Bearish on CGC stock during Q4
Shares of Canopy Growth (NASDAQ: CGC) stock are surging higher following the German government’s decision to legalize marijuana for adults, effective as of April 1. CGC has now more than doubled this week.
With the approval, Canopy expects growth for its Storz & Bickel (S&B) brand, which produces medically approved vaporizers in Germany. Canopy acquired S&B in 2018 for about $157 million. Two of its vaporizers, the VOLCANO MEDIC 2 and the MIGHTY+ MEDIC, received European Union Medical Device Regulations (MDR) certifications last July.
Canopy believes that S&B and Canopy Medical, which sells medical marijuana products, position it as a “top three player in the German cannabis industry.”
“The re-classification of cannabis as a non-narcotic is a game-changer for patients and physicians who will be empowered to better explore cannabis as a viable treatment option for an expanded range of conditions,” said Chief Growth Officer and President, International Tara Rozalowsky.
According to Statista, the German cannabis market is expected to be worth $1.28 billion this year and grow at an annual rate of 14.18% to $2.17 billion by 2028.
The news follows comments from Vice President Kamala Harris surrounding her support for the controversial plant. Harris noted that marijuana being classified as a Schedule 1 drug, like heroin, was “absurd, not to mention patently unfair.”
The 5 Biggest Buyers of CGC Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks.
However, several institutional investors left CGC stock for dead during the fourth quarter. As of Dec. 31, 212 13F filers disclosed a stake in CGC, a decline of 33%, or 104 filers, from the prior quarter, according to WhaleWisdom. The total number of shares owned by these filers fell by a significant 48% to 3.03 million.
Hedge funds, a subset of institutional investors, echoed the bearish sentiment. 28 hedge funds own a stake in Canopy, down from 47. Hedge funds own a total of just 416,622 shares, down from 1.17 million shares.
With that in mind, let’s take a look at Canopy’s top buyers during Q4:
- Susquehanna added 131,343 shares, bringing its stake to 339,420 shares.
- Jane Street added 115,557 shares, bringing its stake to 307,130 shares.
- Renaissance Technologies added 68,582 shares, bringing its stake to 79,308 shares.
- Scotia Capital added 40,987 shares, bringing its stake to 49,053 shares.
- AXS Investments added 38,449 shares, bringing its stake to 100,628 shares.