Turning Point Brands (NYSE:TPB) Stock Price Down 4.2% Following Analyst Downgrade

Key Points

• Turning Point Brands shares fell 4.2% after Needham cut its price target from $125 to $95, while maintaining a Buy rating; the stock closed around $60.15.
• Analyst views are mixed: three rate the stock Buy, one Hold and one Sell, with a consensus rating of Hold and an average price target of $101.
• The company reported quarterly EPS of $0.41, beating the $0.20 estimate, and revenue of $151.1 million, up 27% year over year. It also declared a quarterly dividend of $0.08 per share.

Turning Point Brands, Inc. (NYSE:TPB - Get Free Report) was down 4.2% on Wednesday after Needham & Company LLC lowered their price target on the stock from $125.00 to $95.00. Needham & Company LLC currently has a buy rating on the stock. Turning Point Brands traded as low as $59.83 and last traded at $60.1480. 59,345 shares changed hands during mid-day trading, a decline of 86% from the average daily volume of 412,638 shares. The stock had previously closed at $62.81.

A number of other research analysts have also recently weighed in on the stock. BTIG Research reiterated a "buy" rating on shares of Turning Point Brands in a research note on Monday, August 10th. Weiss Ratings reissued a "hold (c)" rating on shares of Turning Point Brands in a research report on Friday, August 28th. Wall Street Zen upgraded shares of Turning Point Brands from a "strong sell" rating to a "sell" rating in a research note on Monday, August 10th. Oppenheimer lowered their price target on shares of Turning Point Brands from $130.00 to $90.00 and set an "outperform" rating on the stock in a report on Tuesday, September 22nd. Finally, Compass Point set a $116.00 price target on shares of Turning Point Brands in a report on Monday, August 10th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $101.00.

Institutional Investors Weigh In On Turning Point Brands

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Turning Point Brands in the second quarter worth about $137,273,000. Bank of America Corp DE purchased a new stake in shares of Turning Point Brands during the 2nd quarter valued at approximately $47,278,000. Maple Rock Capital Partners Inc. boosted its holdings in Turning Point Brands by 57.5% in the 2nd quarter. Maple Rock Capital Partners Inc. now owns 686,800 shares of the company's stock worth $58,248,000 after buying an additional 250,800 shares during the period. Copeland Capital Management LLC boosted its holdings in Turning Point Brands by 99.4% in the 1st quarter. Copeland Capital Management LLC now owns 407,208 shares of the company's stock worth $35,342,000 after buying an additional 203,020 shares during the period. Finally, First Trust Advisors LP boosted its holdings in Turning Point Brands by 39.6% in the 1st quarter. First Trust Advisors LP now owns 689,905 shares of the company's stock worth $59,877,000 after buying an additional 195,643 shares during the period. Hedge funds and other institutional investors own 96.12% of the company's stock.

Turning Point Brands Price Performance

The firm has a market capitalization of $1.17 billion, a PE ratio of 43.30 and a beta of 1.08. The company has a debt-to-equity ratio of 0.65, a quick ratio of 4.16 and a current ratio of 5.67. The business's 50 day moving average is $64.85 and its two-hundred day moving average is $85.21.

Turning Point Brands (NYSE:TPB - Get Free Report) last posted its earnings results on Monday, November 9th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.20 by $0.21. Turning Point Brands had a return on equity of 6.79% and a net margin of 5.08%. The firm had revenue of $151.10 million for the quarter, compared to the consensus estimate of $146.68 million. During the same quarter in the prior year, the business posted $1.27 earnings per share. The business's quarterly revenue was up 27.0% on a year-over-year basis. Equities research analysts anticipate that Turning Point Brands, Inc. will post 1.19 earnings per share for the current fiscal year.

Turning Point Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, January 8th. Investors of record on Friday, December 18th will be paid a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Friday, December 18th. Turning Point Brands's payout ratio is presently 23.02%.

Turning Point Brands Company Profile

Turning Point Brands, Inc. is a U.S.-based manufacturer, marketer and distributor of branded consumer products, with a portfolio focused on tobacco and nicotine products and related accessories. Its products are sold primarily in the United States, with distribution in international markets as well. The company's Zig-Zag Products business includes rolling papers, wraps, cones and other products associated with the Zig-Zag brand. Its Stoker's Products business offers products such as loose-leaf chewing tobacco and moist snuff, along with nicotine pouches sold under brands including Stoker's and FRE.

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