Tilray Brands (NASDAQ:TLRY) Stock Falls 3.2% - Should You Sell?

Key Points

• Tilray’s fiscal Q1 2027 revenue reached a record $257.1 million, up 23% year over year, while gross profit rose 35% and gross margin expanded to 30%. Beverage sales and international operations drove growth, and BrewDog reached profitability.
• The results included notable weaknesses: revenue missed the roughly $266.3 million analyst estimate, cannabis sales declined, and the company remains unprofitable despite an adjusted EPS beat. Management reaffirmed adjusted EBITDA guidance of $68 million to $75 million and reduced debt by $42 million during the fiscal year.
• TLRY shares fell 3.2% to $3.59 amid mixed analyst sentiment. The stock carries a consensus “Hold” rating and an average price target of $6.38, but several firms recently lowered targets or downgraded their ratings.

Shares of Tilray Brands, Inc. (NASDAQ:TLRY - Get Free Report) dropped 3.2% during trading on Thursday. The stock traded as low as $3.38 and last traded at $3.59. Approximately 9,069,010 shares traded hands during mid-day trading, an increase of 114% from the average daily volume of 4,232,299 shares. The stock had previously closed at $3.71.

Tilray Brands News Summary

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

• Positive Sentiment: Tilray reported record fiscal Q1 2027 revenue of approximately $257.1 million, up 23% year over year, while gross profit increased 35% to $77.5 million and gross margin expanded to 30% from 27%. Tilray fiscal Q1 2027 results
• Positive Sentiment: The beverage business was a key growth driver, generating $101 million in revenue with a 41% gross margin. BrewDog also reached profitability during the quarter, supporting management’s diversification strategy. Tilray record Q1 revenue release
• Positive Sentiment: International operations continued to accelerate, with EMEA revenue rising 71%. Tilray reduced outstanding debt by $42 million during the fiscal year and reaffirmed fiscal 2027 adjusted EBITDA guidance of $68 million to $75 million. Tilray guidance and balance sheet update
• Neutral Sentiment: BrewDog reported strong promotional momentum, including sharply higher recent retail sales, more than 9,000 new distribution points and eight new U.K. partnerships. However, these figures reflect early campaign results and may take time to materially affect Tilray’s financial results. BrewDog Choose Craft campaign
• Negative Sentiment: Revenue of $257.1 million fell short of the approximately $266.3 million analyst consensus. Reports also highlighted declining cannabis sales, raising concern that the company’s core business remains under pressure even as beverages and international operations grow. Tilray Q1 revenue miss
• Negative Sentiment: Although adjusted EPS reportedly beat expectations, Zacks cited a quarterly loss of $0.32 per share versus an expected loss of $0.19, reinforcing concerns about continuing losses and limited profitability. Tilray Q1 earnings report

Analysts Set New Price Targets

A number of research firms recently commented on TLRY. TD decreased their target price on Tilray Brands from $4.70 to $4.50 and set a "buy" rating on the stock in a research report on Monday. Zacks Research cut Tilray Brands from a "hold" rating to a "strong sell" rating in a report on Tuesday, September 29th. Weiss Ratings downgraded Tilray Brands from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, September 21st. TD Cowen decreased their price objective on Tilray Brands from $7.00 to $5.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. Finally, Wall Street Zen lowered shares of Tilray Brands from a "hold" rating to a "sell" rating in a report on Saturday, August 1st. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $6.38.

Tilray Brands Stock Down 3.2%

The company has a quick ratio of 1.37, a current ratio of 2.21 and a debt-to-equity ratio of 0.22. The company has a 50 day simple moving average of $4.32 and a two-hundred day simple moving average of $5.05. The company has a market capitalization of $488.96 million, a P/E ratio of -3.32 and a beta of 1.91.

Tilray Brands (NASDAQ:TLRY - Get Free Report) last announced its earnings results on Thursday, October 8th. The company reported ($0.02) EPS for the quarter, topping analysts' consensus estimates of ($0.18) by $0.16. Tilray Brands had a negative return on equity of 7.76% and a negative net margin of 13.11%.The firm had revenue of $257.15 million during the quarter, compared to analysts' expectations of $266.26 million. As a group, equities analysts predict that Tilray Brands, Inc. will post -0.48 EPS for the current year.

Insider Activity

In other news, CFO Carl Merton purchased 10,000 shares of the company's stock in a transaction that occurred on 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 purchase, the chief financial officer owned 139,753 shares in the company, valued at approximately $645,658.86. This trade represents a 7.71% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. In the last three months, insiders have bought 15,000 shares of company stock valued at $69,225. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of TLRY. Integrated Wealth Concepts LLC bought a new position in Tilray Brands in the 2nd quarter valued at $27,000. Hilton Head Capital Partners LLC bought a new stake in shares of Tilray Brands during the fourth quarter valued at approximately $38,000. Deutsche Bank AG purchased a new stake in shares of Tilray Brands in the second quarter valued at approximately $44,000. Corient Private Wealth LP bought a new stake in Tilray Brands during the 2nd quarter valued at $53,000. Finally, Essential Partners LLC lifted its holdings in shares of Tilray Brands by 110,137.5% in the 1st quarter. Essential Partners LLC now owns 8,819 shares of the company's stock worth $57,000 after buying an additional 8,811 shares during the period. Hedge funds and other institutional investors own 9.35% of the company's stock.

About Tilray Brands

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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