What Happened?

Shares of cannabis company Tilray Brands (NASDAQ: TLRY) jumped 3.5% in the morning session on 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.

After the initial pop the shares cooled down to $0.61, up 1.8% 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 7.8% on the news that the U.S. Senate was scheduled to vote on the confirmation of a new Drug Enforcement Administration (DEA) chief, a crucial step for advancing cannabis rescheduling. 

The vote to confirm Terrance “Terry” Cole as the next DEA Administrator is a pivotal event for the cannabis industry. The DEA cannot formally move forward with the process of rescheduling cannabis from its current Schedule I status without a confirmed leader. A confirmation could unlock the next steps, including a period for public comment and administrative reviews, potentially accelerating the path to reclassifying cannabis to the less-restrictive Schedule III. This regulatory shift is a significant catalyst awaited by investors, as it would formally recognize cannabis's medical use and ease federal restrictions, benefiting companies like Tilray. The market's positive reaction reflects optimism that a confirmed DEA head will end the bureaucratic delays and move the rescheduling process forward.

Tilray is down 58.4% since the beginning of the year, and at $0.61 per share, it is trading 70.1% below its 52-week high of $2.03 from July 2024.

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