Tilray Brands (NASDAQ:TLRY) Stock Falls 1.6% - Should You Sell?

Key Points

• Tilray shares fell 1.6% to $3.72 and remain in a pronounced downtrend near their all-time low, signaling weak investor confidence ahead of earnings.
• BrewDog is showing strong early momentum under Tilray, with comparable retail sales at 2.87 times the year-ago level, expanded UK distribution and recent product awards supporting the company’s beverage strategy.
• Analysts expect fiscal first-quarter revenue growth, but investors will focus on margins, cash flow and losses after Tilray’s previous quarter missed EPS estimates. The stock carries a consensus “Hold” rating and a $6.38 price target, although several analysts have recently cut their targets.

Tilray Brands, Inc. (NASDAQ:TLRY - Get Free Report) shares fell 1.6% during trading on Wednesday. The company traded as low as $3.70 and last traded at $3.72. 3,254,090 shares changed hands during trading, a decline of 23% from the average daily volume of 4,203,233 shares. The stock had previously closed at $3.78.

Key Headlines Impacting Tilray Brands

Here are the key news stories impacting Tilray Brands this week:

• Positive Sentiment: BrewDog reported strong early retail momentum under Tilray’s ownership. Sales of Punk IPA and Hazy Jane across its six largest off-trade retailers were reportedly 2.87 times the year-ago level for the comparable two-week period. BrewDog also added more than 9,000 UK distribution points and eight on-trade partnerships, including agreements with Underbelly and Leicester Tigers. BrewDog Rallies Beer Lovers Across the UK to Choose Craft
• Positive Sentiment: BrewDog received additional recognition at the Scottish Beer Awards, with Hazy Jane Tropical and Krush Test Dummy winning gold medals. The awards and new product launches could strengthen brand visibility and support Tilray’s beverage strategy. BrewDog’s Winning Streak Rolls on with Gold at the Scottish Beer Awards
• Neutral Sentiment: Analysts expect Tilray’s fiscal first-quarter revenue to increase, making the upcoming report the immediate catalyst. Investors will focus on whether revenue growth translates into improved margins, cash flow and a narrower loss.
• Neutral Sentiment: Curaleaf’s increased bid for Aurora Cannabis highlights renewed cannabis-sector consolidation and possible regulatory benefits from Schedule III tax changes. Tilray’s earnings may be viewed as a broader sector indicator, although the deal does not directly improve Tilray’s results. Curaleaf’s Higher Aurora Bid Raises the Stakes in Cannabis Consolidation
• Negative Sentiment: Tilray remains in a pronounced downtrend and is trading close to its all-time low, signaling weak investor confidence ahead of earnings. Tilray Brands Stock Analysis Ahead of Earnings
• Negative Sentiment: TD Securities lowered its price target to C$6.50 while maintaining a Buy rating. The target reduction reinforces concerns about near-term upside, even though the analyst remains constructive on the longer-term outlook. Tilray Brands: TD Cuts Target to C$6.50, Maintains Buy Rating

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on TLRY. ATB Cormark Capital Markets cut their price objective on Tilray Brands from $8.00 to $6.00 and set a "hold" rating on the stock in a report on Monday, September 21st. TD Securities upgraded Tilray Brands to a "strong-buy" rating in a research report on Friday, July 31st. Weiss Ratings downgraded shares of Tilray Brands from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, September 21st. Wall Street Zen lowered shares of Tilray Brands from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Finally, TD decreased their price objective on shares of Tilray Brands from $4.70 to $4.50 and set a "buy" rating for the company in a research note on Monday. One 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 given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $6.38.

Tilray Brands Trading Down 1.9%

The firm has a market cap of $505.30 million, a price-to-earnings ratio of -3.44 and a beta of 1.91. The company has a fifty day moving average price of $4.32 and a 200-day moving average price of $5.07. The company has a current ratio of 2.21, a quick ratio of 1.37 and a debt-to-equity ratio of 0.22.

Tilray Brands (NASDAQ:TLRY - Get Free Report) last posted its earnings results on Tuesday, July 28th. The company reported ($0.43) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.42). Tilray Brands had a negative return on equity of 7.76% and a negative net margin of 13.11%.The company had revenue of $281.71 million for the quarter, compared to analyst estimates of $246.30 million. As a group, research analysts expect that Tilray Brands, Inc. will post -0.42 EPS for the current year.

Insider Buying and Selling at Tilray Brands

In other news, CFO Carl Merton bought 10,000 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was purchased at an average cost of $4.62 per share, with a total value of $46,200.00. Following the acquisition, the chief financial officer directly owned 139,753 shares in the company, valued at $645,658.86. This trade represents a 7.71% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Over the last ninety days, insiders have purchased 15,000 shares of company stock worth $69,225. 1.60% of the stock is owned by 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. purchased a new stake in shares of Tilray Brands during the 2nd quarter worth about $2,073,000. Swiss National Bank increased its stake in shares of Tilray Brands by 4.1% in the 1st quarter. Swiss National Bank now owns 230,503 shares of the company's stock valued at $1,491,000 after purchasing an additional 9,100 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Tilray Brands by 6.1% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 208,229 shares of the company's stock valued at $935,000 after purchasing an additional 11,894 shares in the last quarter. Dimensional Fund Advisors LP raised its holdings in Tilray Brands by 82.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 87,803 shares of the company's stock worth $568,000 after purchasing an additional 39,801 shares during the period. Finally, Legal & General Group Plc acquired a new position in Tilray Brands in the 2nd quarter worth about $381,000. Institutional investors and hedge funds own 9.35% of the company's stock.

Tilray Brands Company Profile

Tilray Brands, Inc is a global consumer packaged goods company focused on cannabis, beverage alcohol, wellness and consumer products. The company develops, produces, distributes and markets a range of cannabis products, including dried flower, pre-rolls, vapes, edibles and medical cannabis products, subject to applicable regulations in the markets it serves.

Tilray also operates beverage alcohol businesses, including craft beer, spirits and other alcoholic beverages. Its portfolio has included brands such as SweetWater Brewing Company, Montauk Brewing Company and Breckenridge Distillery.

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