Tilray (TLRY) Stock Trades Up, Here Is Why

What Happened?

Shares of cannabis company Tilray Brands (NASDAQ:TLRY) jumped 3.3% in the afternoon session after President Trump signed a bill that could ease federal research restrictions on cannabis and psychedelics. 

This legislative development was seen as a significant step forward for the cannabis industry, potentially paving the way for more extensive scientific and medical studies. Easing federal research barriers could accelerate the development of new cannabis-based medicines and products, a positive for companies like Tilray which have a global presence in the medical cannabis market. The news appeared to lift sentiment across the broader cannabis sector, as it signaled a potential softening of the historically strict federal stance on cannabis in the United States. Investors reacted positively to the potential for expanded research, which could unlock new markets and applications for cannabis companies.

After the initial pop the shares cooled down to $0.62, up 2.3% from previous close.

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What Is The Market Telling Us

Tilray’s shares are extremely volatile and have had 57 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 2 days ago when the stock gained 3.5% on the news that continued momentum that saw the stock rise significantly in July. The stock's upward movement appeared to be driven by technical factors and broader momentum in the cannabis sector rather than specific company news. Analysts noted that Tilray's stock price recently moved above its 50-day and 25-day moving averages, with the two averages poised to form a "bullish crossover pattern," a technical signal that often suggests further price increases. This technical strength has contributed to a rally of over 50% for the stock in the past month. The move comes despite a lack of major company-specific announcements. Investors are, however, looking ahead to the company's fourth-quarter and full-year 2025 earnings report.

Tilray is down 57.3% since the beginning of the year, and at $0.62 per share, it is trading 69.3% below its 52-week high of $2.03 from July 2024.

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