Why Tilray Stock Is Sliding Again Wednesday

Tilray Brands Inc (NASDAQ:TLRY) shares are trading lower Wednesday morning, extending a 24% drop over the trailing five sessions following the execution of a corporate restructuring. Here’s what investors need to know.

• TLRY shares are sliding on disappointing news. Get the complete analysis here.

What To Know: The continued downward momentum comes one day after the global cannabis and consumer packaged goods company began trading on a split-adjusted basis.

On Tuesday, Tilray officially implemented a 1-for-10 reverse stock split. This consolidation automatically converted every 10 outstanding shares of common stock into a single share, drastically reducing the company’s outstanding count from approximately 1.16 billion to roughly 116 million. Under the terms of the split, shareholders did not receive fractional shares; instead, those holding fractional interests are receiving cash payments.

According to management, the primary motivation behind the reverse split is to optimize the company’s capital structure. Tilray stated the move is intended to make its stock more attractive to institutional investors and align its share count with peers of similar size. Furthermore, the company estimates the consolidation will trim corporate expenses, potentially generating up to $1 million in annual administrative cost savings.

Benzinga Edge Rankings: Highlighting the stock’s current volatility, Benzinga Edge rankings assign Tilray a strong Momentum score of 79.27, which stands in stark contrast to its lagging Growth score of 25.86.

TLRY Price Action: Tilray Brands shares were down 4.28% at $7.37 at the time of publication on Wednesday, according to Benzinga Pro data.

The 52-week range for TLRY has been quite volatile, with a low of $3.50 and a high of $23.20. This wide range highlights the stock’s potential for significant price swings, which may attract traders looking for volatility but also raises concerns for long-term investors about stability and growth prospects.

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How To Buy TLRY Stock

By now you're likely curious about how to participate in the market for Tilray Brands – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Tilray Brands, which is trading at $7.37 as of publishing time, $100 would buy you 13.6 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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