uploads///marijuana _

Why Tilray Cannabis Stock Popped Today


Nov. 20 2020, Updated 12:35 p.m. ET

Tilray keeps rising

On September 18, cannabis stock Tilray (TLRY) popped about 27% to an all-time high of $153.8 in the mid-day session. The stock is now almost 800% up since its IPO (initial public offering) in July. Meanwhile, Canopy Growth (CGC)(WEED) was up almost 6.8%, Cronos Group (CRON) was up 16.3%, and Aurora Cannabis (ACB)(ACBFF)—which got a boost from Coca-Cola’s interest—was up 8.5%.

Let’s look at why Tilray popped so much.

Article continues below advertisement

Why Tilray popped

Entry into the vast US market has long been a target for Canadian cannabis players (HMMJ) hoping to establish a presence. Naturally, a positive move in this direction acts as a strong catalyst for these stocks, which appears to be why Tilray popped today. 

The US government approved Tilray’s cannabis drug for import for use in clinical trials assessing relief to patients with essential tremors. This clinical trial takes place at the University of California San Diego’s Center for Medical Cannabis Research. Successful initial study results could lead to more research, and the company’s cannabis could eventually become available to patients in the US, where medical marijuana is legal.


Given the stock’s meteoric ascent, the company is now one of the most valuable. Its market capitalization of $13.9 billion is even greater than Canopy Growth’s $11.4 billion.

The company’s valuation looked stretched at an NTM (next-12-month) enterprise-value-to-sales multiple of 89.7x, compared to Canopy Growth’s 23.9x, Aurora Cannabis’s 16.9x, and Cronos Group’s 20.3x.

For more updates, visit the Healthcare sector page.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.