Vitamin Stock Easy Pill to Swallow After Weed Deal

The shares just touched an 11-year high earlier this week

Deputy Editor
Jun 12, 2019 at 10:09 AM
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The shares of Neptune Wellness Solutions Inc (NASDAQ:NEPT) are surging on the charts yet again, after the Canadian nutrition products specialist announced its partnership with Green Organic Dutchman. According to the deal, the latter company will supply cannabis and hemp biomass to NEPT, which will manufacture the finished products. The stock has jumped 4.1% to trade at $4.83 this morning, in response. 

NEPT stock has been popping on the charts, gapping higher on a Tilray (TLRY) deal last week. In fact, the equity just hit an 11-year high of $5.22 on Monday. While the stock has only enjoyed one close atop the $5 region during its recent surge, NEPT has managed to tack on over 90% this year. 

While analysts are relatively quiet on Neptune, the two that do follow the stock gave it a "buy" or better rating. Plus, the consensus 12-month target price of $6.02 sits in territory not charted since September 2007, and is a 25% premium to current levels. 

Options traders, on the other hand, have leaned in a bearish direction. While NEPT only sports a 10-day put/call volume ratio of 0.19 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the ratio sits higher than 88% of all other readings from the past year. This indicates put buying has been quicker-than-usual, relative to call buying, in recent weeks.

 

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