Turning Point Brands, Inc. (NYSE:TPB) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Turning Point Brands, Inc. has received a consensus rating of "Moderate Buy" from eight brokerages, with a price target averaging $78.83.
• The company reported an earnings per share (EPS) of $0.98 for the last quarter, exceeding analysts' estimates of $0.79 and showing a 25.1% increase in revenue year-over-year.
• A quarterly dividend of $0.075 per share will be paid on October 10, 2023, representing an annualized yield of 0.3%.

Shares of Turning Point Brands, Inc. (NYSE:TPB - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the eight ratings firms that are covering the stock, Marketbeat.com reports. Two investment analysts have rated the stock with a hold recommendation, five have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $78.8333.

TPB has been the subject of several recent research reports. Oppenheimer lifted their price objective on Turning Point Brands from $85.00 to $98.00 and gave the stock an "outperform" rating in a report on Thursday, August 7th. Wall Street Zen lowered Turning Point Brands from a "buy" rating to a "hold" rating in a report on Saturday, July 26th. Zacks Research cut shares of Turning Point Brands from a "strong-buy" rating to a "hold" rating in a research note on Friday, September 12th. Finally, Needham & Company LLC began coverage on Turning Point Brands in a research note on Friday, August 1st. They set a "hold" rating for the company.

Hedge Funds Weigh In On Turning Point Brands

A number of hedge funds have recently added to or reduced their stakes in TPB. Divisadero Street Capital Management LP raised its stake in Turning Point Brands by 187.5% during the 2nd quarter. Divisadero Street Capital Management LP now owns 943,784 shares of the company's stock valued at $71,511,000 after buying an additional 615,521 shares during the last quarter. Maple Rock Capital Partners Inc. purchased a new stake in shares of Turning Point Brands during the 2nd quarter valued at about $18,458,000. 4D Advisors LLC increased its position in shares of Turning Point Brands by 133.7% during the 2nd quarter. 4D Advisors LLC now owns 222,000 shares of the company's stock valued at $16,821,000 after purchasing an additional 127,000 shares during the last quarter. SG Americas Securities LLC increased its position in shares of Turning Point Brands by 1,369.7% during the 2nd quarter. SG Americas Securities LLC now owns 123,648 shares of the company's stock valued at $9,369,000 after purchasing an additional 115,235 shares during the last quarter. Finally, Northern Right Capital Management L.P. increased its holdings in Turning Point Brands by 63.9% during the first quarter. Northern Right Capital Management L.P. now owns 220,178 shares of the company's stock valued at $13,087,000 after buying an additional 85,824 shares during the last quarter. 96.12% of the stock is currently owned by hedge funds and other institutional investors.

Turning Point Brands Stock Performance

TPB opened at $98.90 on Wednesday. The company has a current ratio of 4.22, a quick ratio of 2.67 and a debt-to-equity ratio of 1.30. Turning Point Brands has a 1-year low of $40.35 and a 1-year high of $104.76. The company has a market cap of $1.78 billion, a price-to-earnings ratio of 41.38 and a beta of 0.76. The company's fifty day moving average price is $95.32 and its two-hundred day moving average price is $77.41.

Turning Point Brands (NYSE:TPB - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $0.98 earnings per share for the quarter, topping analysts' consensus estimates of $0.79 by $0.19. The company had revenue of $116.63 million for the quarter, compared to analyst estimates of $107.30 million. Turning Point Brands had a net margin of 10.34% and a return on equity of 25.32%. The firm's revenue was up 25.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.68 EPS. On average, analysts expect that Turning Point Brands will post 2.59 EPS for the current fiscal year.

Turning Point Brands Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Friday, September 19th will be given a dividend of $0.075 per share. The ex-dividend date of this dividend is Friday, September 19th. This represents a $0.30 annualized dividend and a yield of 0.3%. Turning Point Brands's dividend payout ratio (DPR) is currently 12.55%.

About Turning Point Brands

Turning Point Brands, Inc, together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker's Products, and Creative Distribution Solutions. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand.

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