5 Investors Are Betting Big on Tilray (TLRY) Stock
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The long-term stock charts of many publicly traded cannabis companies aren’t great. Indeed, it was one of the trends that predated crypto, metaverse, artificial intelligence (AI), and a host of other sought-after catalyst investors for hypergrowth. Thus, the current drop of more than 20% in Tilray (NASDAQ:TLRY) stock may come as no surprise to many who have been following this company for a while.
TLRY’s stock started skyrocketing around the time cannabis became legal in Canada in late 2018. However, the company’s valuation has fallen off a cliff since then.
In an effort to meet what must have been incredible demand in Canada and other markets in Europe (and the United States), Tilray deployed enormous capital to build facilities and hire workers. This resulted in significant capital raisings 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 maturing next year until 2027 clearly has the market worried.
Let’s dive into what is scaring the market with Tilray today and who is still betting on this title.
Who still bets on the TLRY stock?
This debt refinancing was carried out at a fixed interest rate of 5.2%. While this may seem high and is relative to most of the past decade, it is the price investors have demanded for this debt.
Bond investors are generally considered to be much better at dealing with price risk than equity investors. Thus, equity investors seem to be inspired by the bond markets following this announcement.
For those still wondering who invests in Tilray, here is a list of the top institutional investors in TLRY stocks compiled by Yahoo funds. It should be noted that some of these names include companies with brokerage activities or ETFs that are obligated to hold the shares.
- ETF Managers Group owns 7.6 million shares, or 1.23% of the company.
- Susquehanna owns 3.52 million shares, or 0.57% of Tilray.
- Avant-garde 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.
As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.