Tilray Brands (NASDAQ:TLRY) Shares Down 2.9% - Time to Sell?

Key Points

• Tilray Brands shares fell 2.9% on Wednesday to $5.02, with trading volume well below average, reflecting weak near-term market sentiment.
• Recent business updates were mixed: Tilray Medical Germany launched the premium cannabis brand ARX, and the company is expanding its beverage business by taking 24 U.S. craft beer brands into the U.K.
• Tilray is also working on debt reduction through a private debt-for-equity exchange, but that move could create shareholder dilution concerns even as it improves the balance sheet.

Tilray Brands, Inc. (NASDAQ:TLRY - Get Free Report)'s share price traded down 2.9% on Wednesday . The company traded as low as $5.02 and last traded at $5.02. 2,706,153 shares traded hands during trading, a decline of 38% from the average session volume of 4,369,632 shares. The stock had previously closed at $5.17.

Tilray Brands News Summary

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

• Positive Sentiment: Tilray Medical Germany launched ARX, a new premium medical cannabis brand cultivated in Germany, which could strengthen its position in Europe’s medical cannabis market and add a higher-value product line. Tilray Medical Germany Launches ARX™, a New Premium Medical Cannabis Brand Cultivated in Germany
• Positive Sentiment: Tilray is expanding its beverage footprint by bringing 24 U.S. craft beer brands to the U.K. through BrewDog bars and online sales, supporting growth outside the core cannabis business. Tilray brings US craft beer brands to UK through BrewDog
• Neutral Sentiment: Recent coverage also highlighted Tilray funding the Lyphe buyout and a debt reduction transaction with new shares, which may help the balance sheet but also raises dilution concerns for shareholders. Tilray Reduces Debt Through Private Debt-for-Equity Exchange

Analyst Upgrades and Downgrades

TLRY has been the subject of a number of research analyst reports. Roth Mkm upgraded Tilray Brands from a "neutral" rating to a "buy" rating and set a $10.00 price objective for the company in a report on Thursday, April 2nd. Weiss Ratings cut shares of Tilray Brands from a "sell (d-)" rating to a "sell (e+)" rating in a report on Wednesday, May 13th. Zacks Research raised shares of Tilray Brands from a "strong sell" rating to a "hold" rating in a report on Wednesday, February 11th. Wall Street Zen raised shares of Tilray Brands from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Finally, ATB Cormark Capital Markets cut their target price on shares of Tilray Brands from $9.50 to $9.00 and set a "sector perform" rating on the stock in a report on Thursday, April 2nd. Three investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and a consensus target price of $11.50.

Tilray Brands Stock Performance

The company has a current ratio of 2.79, a quick ratio of 1.66 and a debt-to-equity ratio of 0.19. The stock has a market capitalization of $585.08 million, a PE ratio of -0.37 and a beta of 1.88. The firm's 50-day simple moving average is $6.01 and its two-hundred day simple moving average is $7.58.

Tilray Brands (NASDAQ:TLRY - Get Free Report) last posted its quarterly earnings results on Wednesday, April 1st. The company reported ($0.24) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.10). The company had revenue of $206.73 million for the quarter, compared to analysts' expectations of $201.35 million. Tilray Brands had a negative net margin of 156.51% and a negative return on equity of 3.31%. During the same quarter in the prior year, the firm earned ($0.87) earnings per share. On average, equities research analysts expect that Tilray Brands, Inc. will post -0.58 earnings per share for the current fiscal year.

Insider Buying and Selling at Tilray Brands

In other news, Director David G. Hopkinson sold 33,556 shares of the firm's stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $6.94, for a total transaction of $232,878.64. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 0.84% of the company's stock.

Hedge Funds Weigh In On Tilray Brands

A number of hedge funds and other institutional investors have recently bought and sold shares of TLRY. AQR Capital Management LLC boosted its stake in Tilray Brands by 1,839.7% in the first quarter. AQR Capital Management LLC now owns 607,054 shares of the company's stock valued at $399,000 after acquiring an additional 575,757 shares during the last quarter. XTX Topco Ltd bought a new position in shares of Tilray Brands during the second quarter worth $112,000. Cerity Partners LLC boosted its position in shares of Tilray Brands by 98.5% during the second quarter. Cerity Partners LLC now owns 92,560 shares of the company's stock worth $38,000 after purchasing an additional 45,929 shares in the last quarter. Ausdal Financial Partners Inc. bought a new position in shares of Tilray Brands during the second quarter worth $939,000. Finally, Bank of America Corp DE boosted its position in shares of Tilray Brands by 26.5% during the second quarter. Bank of America Corp DE now owns 311,810 shares of the company's stock worth $129,000 after purchasing an additional 65,379 shares in the last quarter. 9.35% of the stock is owned by institutional investors.

Tilray Brands Company Profile

Tilray Brands, Inc is a global cannabis-lifestyle and consumer packaged goods company engaged in the cultivation, production, distribution and sale of cannabis and cannabinoid-based products. The company develops and markets a diverse portfolio of branded products spanning medical cannabis, adult-use recreational products and wellness offerings. Through state-of-the-art cultivation facilities, research and development efforts, and quality control systems, Tilray Brands aims to deliver consistent, scalable products for a range of patient and consumer needs.

Tilray's product lineup includes cannabis flower, pre-rolls, oils and tinctures, vapes, edibles and topicals, as well as hemp-derived cannabidiol (CBD) products.

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