Tilray, a producer and distributor of medical and adult-use cannabis, has witnessed volatile trading over the past few days.
- The market is now looking forward to an executive order from President Trump directing federal agencies to reclassify marijuana as a less dangerous drug.
- A Stocktwits user expressed hopes for Trump signing an executive order as early as Wednesday.
Shares of Tilray Brands (TLRY) soared 31% on Tuesday afternoon as the market gears up for a reclassification of Marijuana.
Tilray, a producer and distributor of medical and adult-use cannabis, has witnessed volatile trading over the past few days. It closed up 44% on Friday and fell 10% on Monday before rising back again on Tuesday. Shares of the company have gained nearly 79% over the past five days.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around TLRY is trending in the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.
A Stocktwits user expressed hopes for Trump signing an executive order directing federal agencies to reclassify marijuana as a less dangerous drug as early as Wednesday. “Is Tomorrow going to be " Weed"nesday ???,” they wrote.
Another believes the stock rising 92% to 115% from current levels is “very doable.” The user sees the stock hitting as high as $28 but added that it is “pure speculation at this point.”
Marijuana Reclassification Hopes
Trump first hinted at reclassifying marijuana as a less dangerous drug in August. On Wednesday, Trump reportedly discussed the plan with House Speaker Mike Johnson, a Republican, in a call that also included marijuana industry executives, Health Secretary Robert F. Kennedy Jr., and CMS chief Mehmet Oz.
The president is expected to seek to ease access to the drug through an upcoming executive order that directs federal agencies to pursue reclassification, the Washington Post reported on Thursday, citing unnamed sources.
On Friday, CNBC reported that an executive order could come as soon as Monday, causing a significant surge in cannabis stocks during the Friday trading session. However, the rally didn't hold on Monday as investors cashed in on the Friday gains.
While the executive order didn’t arrive on Monday, Trump said during a Mexican Border Defense medal presentation at the White House in Washington, DC, that he is “strongly” looking at an executive order directing federal agencies to reclassify marijuana/
"We are considering that. Because a lot of people want to see it," Trump said. "The reclassification, because it leads to tremendous amounts of research that can’t be done unless you reclassify. So we are looking at that very strongly."
Tilray CEO Echoes Optimism
Tilray CEO Irwin Simon also highlighted in October that the regulatory environment in the industry is “poised for meaningful evolution.”
Marijuana remains a Schedule I drug under federal law — the same category as heroin and LSD — a classification reserved for substances deemed to have high abuse potential and no accepted medical use.
Trump is expected to classify marijuana as a Schedule III substance, indicating that it has a lesser potential for abuse and is allowed for use in specific medical treatments, but can also create risks of physical or psychological dependence.
Other Schedule III drugs include Tylenol with codeine, as well as specific steroid and hormone treatments.
Expert Take
According to data from Koyfin, the average price target on Tilray is $16.17, presenting a potential upside of over 18% from current trading levels. Of the nine analysts covering the stock, six rate it a ‘Hold’ while three rate it ‘Buy’ or higher.
TLRY stock is up 19% over the past 12 months.
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