Tilray Brands (TLRY) Stock Skyrockets 27% on Cannabis Reclassification Buzz

Tilray Brands just lit up the market. TLRY shares exploded 27% higher on Wednesday, fueled by fresh regulatory chatter that could rewrite the rulebook for cannabis.

The Catalyst: Reclassification Rumblings

Speculation is building that U.S. authorities are seriously considering moving cannabis from its current restrictive Schedule I status. For a company like Tilray, with major North American ambitions, that's not just news—it's a potential game-changer. The 27% surge tells you everything you need to know about market sentiment.

Why This Move Matters

Reclassification isn't about legalizing your weekend. It's about unlocking banking, easing tax burdens, and clearing a path for legitimate, large-scale commerce. It transforms cannabis from a fringe asset to a mainstream agricultural commodity. For investors, it shifts the narrative from pure speculation to fundamental analysis.

The Road Ahead

Don't mistake a single-day pop for a guaranteed trend. The sector remains volatile, hostage to political winds and regulatory fine print. While the 27% gain is a powerful signal, the real test is whether this momentum can build a lasting foundation for growth—or if it's just another puff of smoke for traders to chase. After all, on Wall Street, sometimes the hype grows faster than the underlying business.

TLDR

• Tilray Brands stock surged 27.5% on December 16, closing at $13.94 with trading volume up 721% above average
• The rally follows President Trump’s comments about potentially reclassifying marijuana to Schedule III
• Analysts upgraded ratings from strong sell to hold, with a consensus price target of $20
• Tilray shares have climbed over 60% in the past five trading sessions
• The company maintains strong financial metrics with a debt-to-equity ratio of 0.15 and quick ratio of 1.56

Tilray Brands stock experienced a dramatic surge on December 16, 2025, climbing 27.5% during the trading session. The stock reached an intraday high of $14.55 before closing at $13.94.

Tilray Brands, Inc., TLRY

Trading volume exploded to approximately 47 million shares, representing a 721% increase over the average daily volume of 5.7 million shares. This massive jump in activity signals heightened investor interest in the cannabis company.

BREAKING: TRUMP just dropped the bomb on weed!

"We're looking at reclassifying marijuana VERY STRONGLY – it unlocks MASSIVE medical research!"

From Schedule I to III? The green rush is REAL.$MSOS $TLRY $CGC pic.twitter.com/WCuosTcoId

— HanfTicker (@HanfTicker) December 15, 2025

The rally appears connected to recent comments from President Donald Trump about marijuana reclassification. Trump told reporters on Monday that he is “very strongly” considering an executive order to make cannabis a Schedule III substance.

“A lot of people want to see it — the reclassification — because it leads to tremendous amounts of research that can’t be done unless you reclassify,” Trump stated.

Tilray CEO Irwin Simon responded to the news by telling CNBC that he’s “a lot more optimistic” about the future of the cannabis space than ever before. His comments reflect growing confidence in potential policy changes.

Analyst Ratings and Price Targets

Several analysts have recently upgraded their outlook on Tilray Brands. Atb Cap Markets upgraded shares from a “strong sell” rating to a “hold” rating on December 10.

Wall Street Zen also raised Tilray from a “strong sell” to a “hold” rating in October. The consensus rating now stands at “hold” with a price target of $20.

Jefferies Financial Group maintains a “buy” rating and lifted its price target from $15 to $20 in August. Currently, two analysts rate the stock as a buy, four give it a hold rating, and one assigns a sell rating.

The $20 consensus price target represents upside potential of over 40% from current levels. This target suggests analysts believe the stock has room to run if market conditions remain favorable.

Technical indicators paint a bullish picture for Tilray shares. The stock is trading above both its 20-day and 50-day moving averages, indicating strong short-term momentum.

The RSI currently sits at 54.94, indicating neutral momentum. This suggests the stock is neither overbought nor oversold at current levels.

Key support is established at $11.50, while resistance may be encountered at $15.50. The stock is trading at 49% of its 52-week range, positioning it in the middle of its yearly performance spectrum.

Tilray has gained more than 60% over the past five trading sessions alone. This rapid appreciation follows weeks of speculation about potential federal policy changes regarding cannabis.

The company maintains solid financial fundamentals with a debt-to-equity ratio of 0.15 and a current ratio of 2.62. The quick ratio of 1.56 demonstrates strong liquidity and the ability to meet short-term obligations.

Tilray’s market capitalization now stands at approximately $1.57 billion. The company has a beta of 1.76, indicating higher volatility compared to the broader market.

Institutional ownership in Tilray remains at 9.35% of the company’s stock. AQR Capital Management increased its position by 1,840% in the first quarter, now holding over 607,000 shares.

Swiss National Bank boosted its position by 2.3% to hold 1.8 million shares. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp lifted its stake by 30.4% to 528,000 shares.

The MACD indicator is currently above its signal line, pointing to continued bullish momentum for the stock. If Tilray breaks through the $15.50 resistance level, the path to new highs could open up for shares.