Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return over the last 12 months is 50.3%. But there is no question some big-name stocks performed better than others along the way.
Tilray’s Huge Run: One company that has been a great investment in the last year has been Canadian cannabis producer Tilray Inc TLRY.
Tilray battled a difficult Canadian cannabis market throughout 2020. However, the biggest news by far in the past year came in December when Tilray announced a merger with Aphria Inc APHA in a deal that will create the world’s largest international cannabis company by revenue.
The new Tilray will now have a more diversified portfolio of cannabis products, including flowers, vapes, pre-rolls, oils, capsules, edibles, medical marijuana, CBD (cannabidiol), and beverages. It will also have a roughly 17% share of the Canadian cannabis market and a strong financial position to expand its reach into the massive U.S. market as well.
Fortunately for Tilray investors, the COVID-19 pandemic in 2020 didn’t hold back Tilray’s growth. In fact, in 2019 Tilray reported a $321.1 million net loss on $153.8 million in revenue. In 2020, those numbers improved to a net loss of $271 million on $191.3 million in revenue.
At the beginning of 2020, Tilray shares were trading at around $17.60. By the beginning of March, the stock was down to $14.74, after news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
Tilray bottomed at $2.43 during the pandemic-driven March sell-off. Fortunately for Tilray investors, the dip did not last long.
By May, Tilray shares were back above $10, but the rally stalled at that point until the November U.S. presidential election.
A victory by Democrat Joe Biden in November and a surprise blue wave giving Democrats control of both the Senate and House sent cannabis stocks soaring on optimism that U.S. cannabis legalization may be just around the corner.
Tilray In 2021, Beyond: The stock ultimately peaked at $67 in February 2021 during a retail investor-fueled short squeeze before pulling back to around $17.60. Traders may be taking profits in the stock after its huge run in the past year. Or they may simply see lack of progress on U.S. legalization and more lackluster growth numbers from the Canadian market as a reason to be skeptical of the stock in the near-term.
Still, Tilray investors who bought one year ago and held on have generated a big return on their investment. In fact, $1,000 in Tilray stock bought on April 13, 2020, would be worth about $2,615 today.
Looking ahead, analysts are expecting significant upside for Tilray in the next 12 months. The average price target among the 8 analysts covering the stock is $25.50, suggesting 44.8% upside from current levels.
Versión en Español en El Planteo: Esto Tendrías Hoy si Hubieras Invertido USD 1.000 en Acciones de Tilray Hace un Año
Meet the biggest cannabis industry players and make deals that will push the industry forward.
Featuring live company presentations, insider panels, and unmatched access to networking, the Benzinga Cannabis Capital Conference is where cannabis executives and entrepreneurs meet.
Join us September 13-14, 2022 at The Palmer House in Chicago, IL.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.