Tilray Brands (NASDAQ:TLRY) Shares Down 6.8% - Here's Why

Key Points

• Shares fell 6.8% — Tilray Brands (TLRY) slid to $7.85 on Wednesday with volume up ~11%, trading below its 50-day ($9.43) and 200-day ($10.97) moving averages.
• Analyst sentiment is weak — the consensus rating is "Reduce" with a $13.33 target after several downgrades (Zacks to "strong sell", Roth MKM cut its price target to $10); coverage shows one Buy, five Hold and two Sell ratings.
• Q earnings missed — Tilray reported EPS of ($0.41) vs. ($0.14) expected and a negative net margin of 251.69%, though revenue of $217.5M slightly beat estimates; market cap is about $915M.

Shares of Tilray Brands, Inc. (NASDAQ:TLRY - Get Free Report) were down 6.8% during trading on Wednesday . The company traded as low as $7.82 and last traded at $7.85. Approximately 6,561,256 shares traded hands during trading, an increase of 11% from the average daily volume of 5,911,325 shares. The stock had previously closed at $8.42.

Analysts Set New Price Targets

A number of research analysts have recently weighed in on the company. Zacks Research cut Tilray Brands from a "hold" rating to a "strong sell" rating in a research report on Tuesday, January 13th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Tilray Brands in a research note on Wednesday, January 21st. Canaccord Genuity Group initiated coverage on shares of Tilray Brands in a research note on Tuesday. They set a "hold" rating for the company. Wall Street Zen raised Tilray Brands from a "strong sell" rating to a "hold" rating in a research note on Saturday, October 11th. Finally, Roth Mkm reduced their price objective on Tilray Brands from $20.00 to $10.00 and set a "neutral" rating on the stock in a research note on Tuesday, January 20th. One analyst has rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $13.33.

Tilray Brands Stock Down 6.8%

The stock's fifty day simple moving average is $9.43 and its two-hundred day simple moving average is $10.97. The company has a debt-to-equity ratio of 0.19, a current ratio of 2.81 and a quick ratio of 1.72. The company has a market capitalization of $914.60 million, a price-to-earnings ratio of -0.36 and a beta of 1.77.

Tilray Brands (NASDAQ:TLRY - Get Free Report) last released its quarterly earnings data on Thursday, January 8th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.14) by ($0.27). Tilray Brands had a negative net margin of 251.69% and a negative return on equity of 6.35%. The company had revenue of $217.51 million for the quarter, compared to analyst estimates of $211.15 million. During the same quarter in the prior year, the firm earned ($0.03) EPS. On average, sell-side analysts predict that Tilray Brands, Inc. will post -0.2 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Tilray Brands

A number of hedge funds have recently modified their holdings of TLRY. Tidal Investments LLC raised its position in shares of Tilray Brands by 15.0% in the second quarter. Tidal Investments LLC now owns 28,971,835 shares of the company's stock valued at $12,006,000 after purchasing an additional 3,776,410 shares during the period. Millennium Management LLC boosted its stake in Tilray Brands by 281.0% during the 3rd quarter. Millennium Management LLC now owns 4,942,319 shares of the company's stock valued at $8,550,000 after purchasing an additional 3,645,060 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Tilray Brands in the 3rd quarter worth approximately $5,813,000. Ausdal Financial Partners Inc. acquired a new position in shares of Tilray Brands during the second quarter worth approximately $939,000. Finally, Scientech Research LLC bought a new stake in shares of Tilray Brands in the third quarter valued at approximately $1,748,000. 9.35% of the stock is owned by institutional investors and hedge funds.

About Tilray Brands

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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