Institutional Investors Abandon Tilray Stock

Tilray Brands, Inc. finds itself navigating turbulent waters as its shares hover around the $0.90 mark, confronting significant headwinds from multiple directions. Recent regulatory filings reveal a substantial departure by a major financial institution, while corporate governance challenges have emerged from the company's latest shareholder meeting. These developments unfold even as the cannabis producer reports its first-ever profitable quarter, creating a complex and concerning picture for investors.

Recent 13F filings with the SEC have uncovered a dramatic reduction in institutional ownership. The Bank of Montreal (BMO) has liquidated 91.5% of its stake in Tilray, selling approximately 2.48 million shares. This substantial divestment leaves the Canadian financial giant with just 230,432 shares remaining in its portfolio.

Such an aggressive sell-off by a prominent financial institution signals growing skepticism among sophisticated market participants. When major holders execute large-scale disposals of this magnitude, they typically exert considerable downward pressure on both liquidity and market sentiment—precisely the challenges Tilray currently faces.

Shareholder Meeting Reveals Governance Concerns

The annual shareholder gathering held on November 18 brought additional troubling news. A key proposal to restructure the company's board of directors (identified as Proposal 4) failed to secure passage.

Should investors sell immediately? Or is it worth buying Tilray?

Although more votes were cast in favor than against the measure, the proposal fell short of achieving the required majority of all outstanding shares. This outcome highlights Tilray's persistent difficulty in mobilizing its retail investor base—a chronic issue that has plagued the company. Consequently, the existing corporate charter remains unchanged, continuing to shield management from certain shareholder accountability mechanisms.

Profitability Fails to Impress Market

In a paradoxical market reaction, Tilray's achievement of its first quarterly net profit coincided with continued stock price weakness. For the first quarter of 2026, the company reported net income of $1.5 million, with adjusted net earnings reaching $3.9 million.

Despite these positive financial metrics, market participants remain unimpressed. Modest profitability appears insufficient to trigger a meaningful revaluation of the company's shares without accompanying robust growth or favorable regulatory catalysts. The Bank of Montreal's decisive exit underscores a broader institutional view: at current growth rates, neither Tilray's cannabis operations nor its beverage segment adequately justify the capital risk for many major investors.

Technical support at the $0.85 level now faces increasing pressure. A breach of this critical threshold could potentially trigger additional automated selling, placing further downward momentum on the stock. All eyes now turn to the next quarterly results scheduled for January 2026, which must demonstrate whether Tilray can sustain its recent positive earnings trajectory.