11/29

Why is Tilray Stock Down Today After Analyst Downgrade

Tilray (TLRY) experienced a decline today, closing at $1.34, down 2.19% from the previous close of $1.37. The stock opened at $1.37 and fluctuated between a high of $1.38 and a low of $1.33, with trading volume significantly below average at 10,879,311 shares, representing only 42.74% of the typical daily volume.

The day's price movement was influenced by several factors. Reddit discussions highlighted skepticism about Tilray's growth prospects, with users questioning the lack of earnings impact from the quadrupling of Australian medical cannabis sales. One user expressed frustration, stating, "Tilray done the inverse of that 7 times in the past two years. Would this dog just go bankrupt already." Additionally, Tilray's involvement with Molson Coors in the acquisition of Cruz Blanca sparked curiosity, though the strategic implications remain unclear.

In other developments, Tilray successfully defended against an investor lawsuit regarding a vote to increase its share limit, as confirmed by Delaware's Chancery Court. This legal victory allows Tilray to increase its shares with a majority of votes cast, rather than a majority of shares outstanding.

Despite these events, the stock's decline was also impacted by a recent analyst downgrade from Roth Mkm, which lowered the price target from $2.00 to $1.75, maintaining a "neutral" rating.