Turning Point Brands (NYSE:TPB) Hits New 12-Month High - Should You Buy?

Key Points

• Turning Point Brands (NYSE:TPB) reached a new 52-week high of $82.25 during trading, showing a significant increase from its previous close of $79.68.
• Analysts have mixed views on the stock, with Oppenheimer raising its target price to $85.00, while Wall Street Zen downgraded it from a "buy" to a "hold" rating.
• The company reported Q1 earnings of $0.91 per share, exceeding analysts' expectations of $0.75 and achieving a year-over-year revenue increase of 28.2% to $106.44 million.

Shares of Turning Point Brands, Inc. (NYSE:TPB - Get Free Report) reached a new 52-week high during trading on Wednesday . The stock traded as high as $82.25 and last traded at $81.88, with a volume of 292834 shares changing hands. The stock had previously closed at $79.68.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on TPB shares. Oppenheimer raised their target price on shares of Turning Point Brands from $65.00 to $85.00 and gave the stock an "outperform" rating in a research report on Thursday, May 8th. Needham & Company LLC began coverage on shares of Turning Point Brands in a research note on Friday. They set a "hold" rating on the stock. Finally, Wall Street Zen downgraded shares of Turning Point Brands from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Two research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $76.67.

Turning Point Brands Price Performance

The stock has a market cap of $1.47 billion, a PE ratio of 36.03 and a beta of 0.75. The company has a current ratio of 4.42, a quick ratio of 2.64 and a debt-to-equity ratio of 1.44. The company's 50 day moving average is $75.49 and its 200-day moving average is $67.17.

Turning Point Brands (NYSE:TPB - Get Free Report) last announced its quarterly earnings data on Wednesday, May 7th. The company reported $0.91 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.16. The company had revenue of $106.44 million during the quarter, compared to analyst estimates of $95.75 million. Turning Point Brands had a net margin of 10.19% and a return on equity of 27.70%. The firm's revenue for the quarter was up 28.2% compared to the same quarter last year. During the same period last year, the business earned $0.63 EPS. As a group, sell-side analysts predict that Turning Point Brands, Inc. will post 2.59 earnings per share for the current year.

Turning Point Brands Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 1st. Stockholders of record on Friday, June 20th were issued a $0.075 dividend. The ex-dividend date of this dividend was Friday, June 20th. This represents a $0.30 annualized dividend and a dividend yield of 0.4%. Turning Point Brands's payout ratio is 13.16%.

Insiders Place Their Bets

In other Turning Point Brands news, CAO Brian Wigginton sold 10,800 shares of the business's stock in a transaction dated Monday, June 16th. The shares were sold at an average price of $75.67, for a total transaction of $817,236.00. Following the completion of the transaction, the chief accounting officer directly owned 10,171 shares of the company's stock, valued at $769,639.57. The trade was a 51.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Graham Purdy sold 30,000 shares of the business's stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $75.03, for a total transaction of $2,250,900.00. Following the transaction, the chief executive officer directly owned 227,466 shares of the company's stock, valued at $17,066,773.98. The trade was a 11.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 115,300 shares of company stock worth $8,666,867. Corporate insiders own 6.60% of the company's stock.

Institutional Trading of Turning Point Brands

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Y Intercept Hong Kong Ltd raised its position in shares of Turning Point Brands by 451.7% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 30,126 shares of the company's stock worth $2,283,000 after buying an additional 24,665 shares in the last quarter. Briaud Financial Planning Inc bought a new stake in shares of Turning Point Brands in the 2nd quarter worth approximately $31,000. Sentry Investment Management LLC bought a new stake in shares of Turning Point Brands in the 2nd quarter worth approximately $329,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Turning Point Brands in the 2nd quarter worth approximately $235,000. Finally, Ritholtz Wealth Management raised its holdings in shares of Turning Point Brands by 52.8% in the 2nd quarter. Ritholtz Wealth Management now owns 23,579 shares of the company's stock worth $1,787,000 after purchasing an additional 8,151 shares in the last quarter. 96.12% of the stock is currently owned by institutional investors.

Turning Point Brands Company Profile

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.