Shares of cannabis company Tilray Brands (NASDAQ:TLRY)
fell 16.4% in the after-market session after the company announced it would implement a 1-for-10 reverse stock split. A reverse stock split combines multiple shares into one, which increases the price per share without changing the company's total value. Although management noted the move was intended to make the company more attractive to institutional investors and cut up to $1 million in yearly administrative costs, investors reacted negatively. Such actions can be viewed by the market as an effort to keep a stock's price above an exchange's minimum listing requirements. The significant drop in the stock's price reflected these concerns. Also contributing to the market reaction was the news that the company announced it would implement a 1-for-10 reverse stock split. A reverse stock split combines multiple shares into one, which increases the price per share without changing the company's total value. Although management noted the move was intended to make the company more attractive to institutional investors and cut up to $1 million in yearly administrative costs, investors reacted negatively. Such actions can be viewed by the market as an effort to keep a stock's price above an exchange's minimum listing requirements. The significant drop in the stock's price reflected these concerns.
Intrigued by the market activity one hour before the close of the markets on Friday? Uncover the key winners and losers of today's session in our insightful analysis.
As we await the opening of the US market on Friday, let's delve into the pre-market session and discover the top gainers and losers shaping the early market sentiment.
The regular session of the US market on Thursday is now over, but let's get a preview of the after-hours session and explore the top gainers and losers driving the post-market movements.
After the conclusion of the US market's regular session on Wednesday, let's examine the after-hours session and unveil the notable performers among the top gainers and losers.
Shares of cannabis company Tilray Brands (NASDAQ:TLRY)
fell 1.8% in the morning session after the U.S. government passed a spending bill that included provisions to re-criminalize certain hemp-derived THC products.
Congress appears set to end the record-long government shutdown, but a controversial provision tucked into the spending bill is sparking alarm across the hemp and cannabis industry.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
