Turning Point Brands (NYSE:TPB) Hits New 1-Year High - Should You Buy?

Key Points

• Turning Point Brands (TPB) reached a new 52-week high of $99.49 during trading, with the stock currently at $97.71.
• Analysts have mixed views on TPB, with a consensus rating of "Moderate Buy" and a target price of $78.83, while some analysts downgraded the rating to "hold".
• The company reported strong earnings, with $0.98 earnings per share for the last quarter, surpassing expectations and marking a 25.1% year-over-year revenue increase.

Turning Point Brands, Inc. (NYSE:TPB - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $99.49 and last traded at $97.71, with a volume of 460650 shares trading hands. The stock had previously closed at $96.76.

Wall Street Analyst Weigh In

TPB has been the topic of a number of analyst reports. Needham & Company LLC initiated coverage on shares of Turning Point Brands in a research report on Friday, August 1st. They issued a "hold" rating on the stock. Wall Street Zen downgraded shares of Turning Point Brands from a "buy" rating to a "hold" rating in a report on Saturday, July 26th. Finally, Oppenheimer raised their target price on shares of Turning Point Brands from $85.00 to $98.00 and gave the stock an "outperform" rating in a report on Thursday, August 7th. Two research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $78.83.

Turning Point Brands Stock Up 1.0%

The company has a quick ratio of 2.64, a current ratio of 4.42 and a debt-to-equity ratio of 1.44. The company has a market capitalization of $1.75 billion, a price-to-earnings ratio of 40.88 and a beta of 0.66. The stock's fifty day moving average price is $77.71 and its 200-day moving average price is $68.89.

Turning Point Brands (NYSE:TPB - Get Free Report) last issued 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 business had revenue of $116.63 million for the quarter, compared to the consensus estimate of $107.30 million. Turning Point Brands had a net margin of 10.34% and a return on equity of 26.34%. The firm's revenue for the quarter was up 25.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.68 earnings per share. On average, sell-side analysts predict that Turning Point Brands, Inc. will post 2.59 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, October 10th. Shareholders of record on Friday, September 19th will be issued a $0.075 dividend. This represents a $0.30 annualized dividend and a dividend yield of 0.3%. The ex-dividend date is Friday, September 19th. Turning Point Brands's payout ratio is currently 12.55%.

Insider Transactions at Turning Point Brands

In other 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 value of $817,236.00. Following the completion of the sale, the chief accounting officer owned 10,171 shares of the company's stock, valued at approximately $769,639.57. The trade was a 51.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 completion of the sale, the chief executive officer directly owned 227,466 shares of the company's stock, valued at approximately $17,066,773.98. The trade was a 11.65% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 110,300 shares of company stock valued at $8,291,282. Corporate insiders own 6.60% of the company's stock.

Institutional Investors Weigh In On Turning Point Brands

Several institutional investors and hedge funds have recently bought and sold shares of the company. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in Turning Point Brands during the second quarter worth about $2,570,000. SG Capital Management LLC acquired a new position in shares of Turning Point Brands in the second quarter valued at approximately $3,301,000. SG Americas Securities LLC raised its holdings in Turning Point Brands by 1,369.7% in the 2nd quarter. SG Americas Securities LLC now owns 123,648 shares of the company's stock valued at $9,369,000 after buying an additional 115,235 shares during the last quarter. Police & Firemen s Retirement System of New Jersey raised its holdings in Turning Point Brands by 12.1% in the 2nd quarter. Police & Firemen s Retirement System of New Jersey now owns 4,004 shares of the company's stock valued at $303,000 after buying an additional 432 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in Turning Point Brands by 1.4% in the 2nd quarter. Geode Capital Management LLC now owns 509,743 shares of the company's stock valued at $38,629,000 after buying an additional 7,104 shares during the last quarter. Institutional investors own 96.12% of the company's stock.

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.

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