Tilray Bands stock faced a decline in January, prompting Chairman and CEO Irwin D. Simon to take action by purchasing shares of the marijuana producer on the open market. Despite Tilray reporting fiscal-second-quarter results that exceeded expectations on January 9, the company’s shares dropped by 10% and closed at $2.11. This downward trend is consistent with previous years, as Tilray stock has consistently finished each full year with a double-digit percentage decline since its initial public offering in 2018. In 2023, for example, the stock experienced a 14% decrease while the S&P 500 index rose by 24%.
To capitalize on the stock’s decline, Simon acquired 53,700 Tilray shares on January 12, investing a total of $101,000 at an average price of $1.88 per share. As revealed through a form filed with the Securities and Exchange Commission, Simon now holds a majority of his 2.03 million shares through vested stock units. Simon assumed his roles as chairman and CEO in 2021 following the merger between Tilray and Aphria, a company he previously led.
Although Tilray did not provide a comment from Simon regarding his recent stock purchase, it is worth noting that the company has yet to turn a profit. However, revenue reached a record high in the fiscal second quarter. Simon expressed plans for further acquisitions in 2024, highlighting Tilray’s expansion into craft beverages. In 2023, the company acquired eight Anheuser-Busch InBev brands. Recently, Tilray’s subsidiary SweetWater Brewing introduced two new fruit-flavored, high-alcohol India pale ales: Sour Watermelon and Cherry Limeaid.
The Inside Scoop is a regular feature that brings attention to stock transactions made by corporate executives and board members, along with notable shareholders, politicians, and other prominent figures. These individuals, referred to as insiders due to their role within the company, are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Overall, Tilray’s Chairman and CEO’s decision to purchase shares amidst the stock’s decline showcases their confidence in the company’s future prospects.