Today, Tilray (TLRY) has tanked nearly 10.1% to $90 as of 11:45 AM EST. The stock has apparently been affected by an IPO lockup expiry, which essentially opens the door for early investors to sell their shares on the open market, diluting the number of shares available for trading.
The company, however, has a low float of ~10 million shares compared to its peers Canopy Growth (CGC) (WEED) at 49 million shares, Aurora Cannabis (ACB) at 989 million shares, and Cronos Group (CRON) at nearly 156 million shares. A low float makes a stock more susceptible to wider swings, which could explain why Tilray has been a wild ride for investors. We detailed this issue in our recent series Is Tilray Back in Action for Day Traders?
CGC and ACB hold their gains
On the other hand, Canopy Growth held its gains from yesterday and rose another 4.9% as of noon today following the news of its receipt of a hemp license in the State of New York. Read How Hemp License Sets CGC on a Path to a Billion Dollars in Sales to learn more.
Aurora Cannabis also rose 5% after its announcement of an acquisition yesterday. Overall, the cannabis sector was in the positive on the day, with the Horizons Marijuana Life Sciences ETF (HMMJ) up nearly 11 basis points.