Shares of Tilray Brands Inc (NASDAQ:TLRY) are trading sharply higher Tuesday afternoon, continuing a recent trend of investor interest across social media despite a lack of company-specific news for the session. Here’s what investors need to know.
What To Know: Last week, interest in Tilray began to build following several strategic moves in June, including shareholder approval for a potential reverse stock split and a significant expansion of its medical cannabis distribution in Italy. These developments appear to have put the company back on the radar of active traders.
Driving Tuesday’s rally is exceptionally heavy trading volume. The session volume has already hit over 65 million shares around 2:45p.m. Eastern Time, more than double the 100-day average volume of approximately 26.8 million shares. This heightened activity is interacting with a significant amount of short interest in the stock.
According to data from Benzinga Pro, nearly 20% of Tilray's float is held by short sellers. With a short float of over 200 million shares, the sharp upward price movement may be forcing some shorts to buy back their positions, potentially creating a short squeeze that further accelerates the stock’s climb.
The combination of last month’s company-specific announcements and heavy trading volume is likely the cause of Tuesday’s volatility. Although Tilray's stock has dropped 67.5% over the past year, its recent strategic financial moves and European expansion efforts seem to have brought it back into focus for traders.
Benzinga Edge Rankings: Based on Benzinga Edge stock rankings, which assess the fundamental and technical strength of a stock, Tilray presents a compelling, albeit mixed, profile.
The company scores exceptionally high for Value, with a rating of 83.08. This suggests that, according to Benzinga’s metrics, the stock may be significantly undervalued compared to its peers and its intrinsic financial health.
In stark contrast, Tilray receives very low scores for Growth (21.69) and Momentum (3.87), indicating weak historical growth trends and poor recent price performance leading into the current session.
Price Action: According to data from Benzinga Pro, TLRY shares are trading higher by 11.7% to 56 cents Tuesday afternoon. The stock has a 52-week high of $2.15 and a 52-week low of $0.35.
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 $0.57 as of publishing time, $100 would buy you 175.44 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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