What Happened?
Shares of cannabis company Tilray Brands (NASDAQ: TLRY) jumped 5.5% in the afternoon session after the company announced the launch of three new EU-GMP certified medical cannabis strains in Germany.
The new products, offered under the company's Good Supply brand, are intended to improve patient and pharmacy access in what is considered Europe's largest medical cannabis market. This expansion reinforces Tilray's strategy to grow its influential global presence. The positive momentum for the stock may also be supported by other recent developments. On August 25, Jefferies raised its price target on the company, citing potential U.S. government policy changes regarding cannabis rescheduling. Additionally, on August 27, Tilray announced it had regained compliance with Nasdaq's minimum bid price requirement.
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What Is The Market Telling Us
Tilray’s shares are extremely volatile and have had 66 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 5.8% on the news that investors took profits after a significant rally in the previous session. The pullback follows a 17% surge on Tuesday, which was driven by speculation regarding potential cannabis reclassification policies. Adding to the positive sentiment yesterday, analysts at Jefferies raised their price target on the stock to $2.00. With no new negative news to account for the drop, today's decline appears to be a technical move as traders cash in on the recent sharp gains.
Tilray is up 0.2% since the beginning of the year, but at $1.46 per share, it is still trading 19.2% below its 52-week high of $1.81 from September 2024.
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