Tilray Brands, Inc. (NASDAQ:TLRY) experienced a significant increase in its share price on January 8, 2024, rising by 4.9% to reach a trading high of $7.97 before closing at $7.92. This surge occurred despite a notable decline in trading volume, with approximately 2,217,949 shares exchanged, down 50% from the usual volume of 4,402,332 shares.
Multiple brokerages have recently adjusted their ratings on Tilray Brands. Notably, Canaccord Genuity Group initiated coverage with a “hold” rating. Furthermore, Wall Street Zen upgraded the stock from a “sell” to a “hold” rating, while ATB Cormark Capital Markets made a similar shift from “strong sell” to “hold.” In addition, Zacks Research raised its rating from “strong sell” to “hold.” These adjustments reflect a cautious optimism among analysts, with one analyst issuing a “buy” rating, six assigning a “hold” rating, and one recommending a “sell.” The average consensus target price for the stock stands at $13.33.
Quarterly Earnings Report Highlights
Tilray Brands’ latest quarterly earnings report revealed a loss of ($0.41) earnings per share (EPS), which fell short of the consensus estimate of ($0.14) by ($0.27). The company reported revenues of $217.51 million, surpassing analyst expectations of $211.15 million. Despite the revenue growth, Tilray Brands recorded a negative return on equity of 6.35% and a troubling net margin of 251.69%. Comparatively, during the same quarter last year, the firm posted an EPS of ($0.03). Analysts forecast that Tilray will post an EPS of (-0.20) for the current year.
Institutional Investment Activity
Recent trading activity reveals growing interest from institutional investors in Tilray Brands. Tidal Investments LLC increased its holdings by 15.0% during the second quarter, bringing its total ownership to 28,971,835 shares valued at approximately $12.01 million. Similarly, Millennium Management LLC expanded its stake by an impressive 281.0% in the third quarter, now owning 4,942,319 shares worth $8.55 million after acquiring an additional 3,645,060 shares.
Other notable investments include MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., which purchased a new stake worth around $5.81 million. Additionally, Swiss National Bank boosted its stake by 4.4%, acquiring an extra 84,900 shares during the same period. Currently, institutional investors and hedge funds hold approximately 9.35% of Tilray Brands’ total shares.
Tilray Brands, Inc. operates as a global cannabis-lifestyle and consumer packaged goods company. It is involved in the cultivation, production, distribution, and sale of cannabis and cannabinoid-based products. The company’s diverse product offerings include medical cannabis, adult-use recreational products, and wellness solutions, catering to a wide range of consumer needs.
