Investors Purchase Large Volume of Call Options on Aurora Cannabis (NASDAQ:ACB)

Aurora Cannabis Inc. (NASDAQ:ACB) saw unusually large options trading activity on Monday. Traders bought 2,710 call options on the company. This represents an increase of 248% compared to the typical volume of 778 call options.

Key Stories Impacting Aurora Cannabis

Here are the key news stories impacting Aurora Cannabis this week:

• Positive Sentiment: Curaleaf raised its offer by 25%. The revised proposal includes 0.4013 Curaleaf shares plus US$1 in cash per Aurora share, with a cap price of US$6. The offer represents a substantial premium to Aurora’s pre-bid trading levels and is the primary catalyst supporting ACB. Curaleaf raises Aurora Cannabis offer by 25%
• Positive Sentiment: Aurora’s debt-free balance sheet makes it an attractive acquisition target. Curaleaf is seeking access to Aurora’s approximately US$105 million in cash and investments, as well as its global, EU-GMP-certified medical cannabis operations. Curaleaf’s Higher Aurora Bid Raises the Stakes in Cannabis Consolidation
• Positive Sentiment: Investor positioning reflects takeover speculation. Aurora call-option volume was reported at 248% above its typical level, suggesting traders are positioning for additional deal-related upside, although options activity is not a guarantee of a completed transaction.
• Neutral Sentiment: Aurora’s Special Committee is reviewing the revised bid independently. The company has advised shareholders to take no action until the review is complete and the Board issues a formal recommendation. This keeps the takeover premium in focus but leaves the final outcome uncertain. Aurora urges shareholders to take no action
• Neutral Sentiment: Schedule III tax relief is supporting broader cannabis M&A. Removing the 280E tax burden for qualifying medical cannabis businesses could improve industry cash flow and encourage consolidation, while Tilray’s upcoming earnings may provide a read-through on sector financial health.

Aurora Cannabis Stock Up 2.9%

Aurora Cannabis stock opened at $4.59 on Wednesday. The company has a debt-to-equity ratio of 0.03, a current ratio of 5.36 and a quick ratio of 2.80. The company’s 50-day moving average is $3.75 and its 200-day moving average is $3.39. The firm has a market capitalization of $301.65 million, a PE ratio of -3.26 and a beta of 0.63. Aurora Cannabis has a fifty-two week low of $2.56 and a fifty-two week high of $6.66.

Aurora Cannabis (NASDAQ:ACB) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.04 EPS for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.17. The business had revenue of $47.62 million during the quarter, compared to analysts’ expectations of $47.45 million. Aurora Cannabis had a positive return on equity of 4.37% and a negative net margin of 32.26%. Sell-side analysts anticipate that Aurora Cannabis will post -0.07 earnings per share for the current year.

Institutional Investors Weigh In On Aurora Cannabis

A number of large investors have recently added to or reduced their stakes in the business. Two Sigma Securities LLC acquired a new stake in Aurora Cannabis during the 2nd quarter valued at $36,000. State of Wyoming acquired a new position in shares of Aurora Cannabis in the second quarter valued at $56,000. Baader Bank Aktiengesellschaft raised its position in shares of Aurora Cannabis by 37.3% in the first quarter. Baader Bank Aktiengesellschaft now owns 33,060 shares of the company’s stock valued at $108,000 after purchasing an additional 8,990 shares during the period. Silver Oak Securities Incorporated raised its position in shares of Aurora Cannabis by 71.3% in the first quarter. Silver Oak Securities Incorporated now owns 37,223 shares of the company’s stock valued at $122,000 after purchasing an additional 15,491 shares during the period. Finally, Leonteq Securities AG lifted its stake in shares of Aurora Cannabis by 24.7% during the 1st quarter. Leonteq Securities AG now owns 42,839 shares of the company’s stock worth $140,000 after buying an additional 8,472 shares during the last quarter. Institutional investors own 47.63% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. BMO Capital Markets raised Aurora Cannabis to a “hold” rating in a research report on Wednesday, August 5th. Weiss Ratings raised Aurora Cannabis from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Friday. Zacks Research upgraded Aurora Cannabis from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 7th. Finally, Wall Street Zen raised Aurora Cannabis from a “sell” rating to a “hold” rating in a research report on Sunday, September 13th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy”.

About Aurora Cannabis

Aurora Cannabis Inc is a Canadian cannabis company focused primarily on the production, distribution and sale of medical cannabis. The company offers cannabis products such as dried flower, pre-rolls, oils, softgels, capsules and other formulations through its medical and consumer brands.

Founded in 2013 and headquartered in Edmonton, Alberta, Aurora serves adult-use and medical markets in Canada and supplies medical cannabis to selected international markets. Its international operations and partnerships have included markets in Europe, Australia and other regions where cannabis is permitted for medical use.

Aurora sells products under brands including Aurora, CanniMed, MedReleaf and San Rafael ’71.