Tilray Brands (NASDAQ:TLRY) Shares Down 2.9% - Here's Why

Key Points

• Tilray shares fell 2.9% to $2.69 in mid-day trading, with volume slightly above its average; the stock remains well below its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but centers on a “Hold” consensus, with an average price target of $5.90 after several firms recently lowered their targets.
• Tilray beat quarterly EPS expectations but missed revenue forecasts, while reporting negative net margins and return on equity; insiders have nevertheless purchased shares recently.

Tilray Brands, Inc. (NASDAQ:TLRY - Get Free Report)'s share price fell 2.9% during mid-day trading on Wednesday. The stock traded as low as $2.62 and last traded at $2.69. Approximately 4,337,976 shares traded hands during trading, an increase of 3% from the average daily volume of 4,208,672 shares. The stock had previously closed at $2.77.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on TLRY. Weiss Ratings lowered Tilray Brands from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday. ATB Cormark Capital Markets dropped their price target on Tilray Brands from $8.00 to $6.00 and set a "hold" rating for the company in a research report on Monday, September 21st. Canaccord Genuity Group cut their price target on Tilray Brands from $4.50 to $4.00 and set a "hold" rating for the company in a report on Friday, October 9th. TD reduced their price objective on Tilray Brands from $4.70 to $4.50 and set a "buy" rating on the stock in a research report on Monday, October 5th. Finally, TD Cowen reduced their price objective on Tilray Brands from $7.00 to $5.00 and set a "buy" rating on the stock in a research report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $5.90.

Tilray Brands Stock Performance

The stock's 50-day moving average is $3.91 and its 200-day moving average is $5.61. The stock has a market cap of $397.56 million, a price-to-earnings ratio of -1.92 and a beta of 1.91. The company has a debt-to-equity ratio of 0.17, a current ratio of 1.88 and a quick ratio of 1.11.

Tilray Brands (NASDAQ:TLRY - Get Free Report) last released its earnings results on Thursday, October 8th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.18) by $0.16. Tilray Brands had a negative net margin of 16.91% and a negative return on equity of 10.39%. The firm had revenue of $257.15 million during the quarter, compared to analysts' expectations of $266.26 million. Analysts anticipate that Tilray Brands, Inc. will post -0.52 EPS for the current fiscal year.

Insider Activity

In other Tilray Brands news, CFO Carl Merton bought 10,000 shares of Tilray Brands stock in a transaction that occurred on Tuesday, August 4th. The shares were purchased at an average cost of $4.62 per share, for a total transaction of $46,200.00. Following the completion of the transaction, the chief financial officer owned 139,753 shares of the company's stock, valued at $645,658.86. This represents a 7.71% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders acquired a total of 15,000 shares of company stock worth $69,225 in the last 90 days. 1.60% of the stock is owned by company insiders.

Institutional Trading of Tilray Brands

Several hedge funds and other institutional investors have recently added to or reduced their stakes in TLRY. BlackRock Inc. acquired a new position in Tilray Brands during the second quarter worth approximately $2,073,000. Legal & General Group Plc purchased a new position in Tilray Brands during the second quarter worth approximately $381,000. Ieq Capital LLC purchased a new position in Tilray Brands during the second quarter worth approximately $146,000. Deutsche Bank AG acquired a new position in shares of Tilray Brands in the 2nd quarter valued at $44,000. Finally, State of Wyoming acquired a new position in shares of Tilray Brands in the 2nd quarter valued at $171,000. Hedge funds and other institutional investors own 9.35% of the company's stock.

Tilray Brands Company Profile

Tilray Brands, Inc is a global consumer packaged goods company operating across the cannabis, beverage alcohol, wellness and distribution sectors. Its cannabis business includes adult-use and medical cannabis products such as dried flower, pre-rolls, vapes, concentrates, edibles and beverages, marketed under brands including Good Supply, RIFF and Broken Coast.

The company also owns and operates beverage alcohol businesses, including SweetWater Brewing Company, Montauk Brewing Company, Alpine Beer Company, Green Flash Brewing Co and Blue Point Brewing Company.

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