Tilray Brands Inc ( TLRY ) shares are trending Tuesday as the stock begins trading on a split-adjusted basis.

TLRY shares are sliding on disappointing news. Follow the breaking news here.

What To Know: Tilray announced plans last week to implement a one-for-10 reverse stock split of its common stock. The reverse split was approved at the company ‘s special meeting of stockholders in June and took effect on Tuesday.

Every 10 outstanding shares of Tilray common stock were automatically converted into one share on Tuesday. The stock was down more than 2% at last check, according to Benzinga Pro.

Tilray said the reverse split is intended to better align its share count with peers of similar size, enhance the stock's appeal to institutional investors and trim corporate expenses tied to shareholder meetings. The company estimates the move could generate up to $1 million in annual cost savings.

TLRY Analysis: Tilray stock is currently trading 46.7% below its 50-day moving average, indicating a substantial disconnect from its recent performance. Additionally, it is 15.1% below its 200-day moving average, further emphasizing the downward momentum and suggesting that the stock is struggling to gain traction in a challenging market environment.

The 52-week range of TLRY, which spans from $3.50 to $23.20, highlights the volatility and potential for both gains and losses. Currently, the stock is trading closer to its lower range, reflecting investor sentiment that may be cautious or pessimistic given the recent price action.

Key support levels are identified around the $7.00 mark, which may serve as a psychological barrier for traders. If the stock breaks below this level, it could open the door to further downside, potentially testing the lower end of its 52-week range. Conversely, resistance is likely to be encountered at the $8.00 level, where sellers may emerge to cap any upward movements.

As it stands, the market will be closely watching for any developments that could influence Tilray’s trajectory in the coming sessions.

TLRY Price Action: Tilray shares were down 3.58%, trading at $7.54 at the time of publication on Tuesday, according to Benzinga Pro.

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