5 Investors Betting Big on Tilray (TLRY) Stock

Source: T. Schneider / Shutterstock.com

The long-term stock charts of many publicly-traded cannabis companies aren’t great. Indeed, this was one of the trends that preceded crypto, the metaverse, artificial intelligence (AI), and a host of other catalysts investors looked to for hypergrowth. Thus, today’s more than 20% decline in Tilray (NASDAQ:TLRY) stock may not surprise many who have followed this company for some time.

TLRY stock began to soar around the time cannabis became federally legal in Canada in late-2018. However, the company’s valuation has fallen off a cliff since then.

In a bid to meet what was expected to be incredible demand in both Canada and other markets in Europe (and the U.S.), Tilray deployed a tremendous amount of capital in building out facilities and hiring workers. This entailed significant capital raises via the equity and debt markets.

However, with the company still failing to turn a profit, its balance sheet has become a key issue for investors. Today’s announcement that the company will refinance its debt due next year to 2027 clearly has the market concerned.

Let’s dive into what is spooking the market with Tilray today and who’s still betting on this stock.

Who Is Still Betting on TLRY Stock?

This debt refinancing has been carried out at a fixed interest rate of 5.2%. While that may sound high, and it is relative to most of the past decade, that’s the price investors demanded for this debt.

Bond investors are generally considered to be much better at pricing risk than equity investors. Thus, equity investors appear to be taking their cue from the bond markets following this announcement.

For those still wondering who is invested in Tilray, here’s a list of the top institutional investors in TLRY stock compiled by Yahoo Finance. It should be noted that some of these names include companies with brokerage businesses or ETFs that are forced to hold the stock.

  • ETF Managers Group owns 7.6 million shares, worth 1.23% of the company.
  • Susquehanna owns 3.52 million shares, or 0.57% of Tilray.
  • Vanguard owns 3.47 million shares, or 0.56% of the company.
  • Morgan Stanley (NYSE:MS) owns 2.8 million shares, or 0.45% of the company.
  • Mirae Asset Global owns 2.68 million shares, or 0.43% of the company.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.

x Logo: Shield Security
This Site Is Protected By
Shield Security