Turning Point Brands (NYSE:TPB) Reaches New 1-Year High - Still a 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 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

Several equities analysts recently weighed in on TPB shares. Wall Street Zen cut shares of Turning Point Brands from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. Oppenheimer raised their price target on shares of Turning Point Brands from $85.00 to $98.00 and gave the company an "outperform" rating in a research report on Thursday, August 7th. Finally, Needham & Company LLC started coverage on shares of Turning Point Brands in a research report on Friday, August 1st. They issued a "hold" rating on the stock. Two 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 company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $78.83.

Turning Point Brands Stock Performance

The company's 50-day simple moving average is $79.64 and its 200 day simple moving average is $69.84. The company has a current ratio of 4.22, a quick ratio of 2.64 and a debt-to-equity ratio of 1.30. The stock has a market cap of $1.78 billion, a P/E ratio of 41.21 and a beta of 0.66.

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

Turning Point Brands Announces Dividend

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

Insider Activity at Turning Point Brands

In related news, CEO Graham Purdy sold 21,400 shares of Turning Point Brands stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $74.89, for a total value of $1,602,646.00. Following the completion of the transaction, the chief executive officer directly owned 227,466 shares in the company, valued at approximately $17,034,928.74. The trade was a 8.60% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Stephen Usher sold 600 shares of Turning Point Brands stock in a transaction that occurred on Thursday, June 5th. The shares were sold at an average price of $75.25, for a total transaction of $45,150.00. Following the completion of the transaction, the director owned 6,175 shares of the company's stock, valued at $464,668.75. This represents a 8.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 110,300 shares of company stock worth $8,291,282 over the last 90 days. Corporate insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of TPB. Divisadero Street Capital Management LP grew its position in shares of 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 purchasing an additional 615,521 shares in the last quarter. Maple Rock Capital Partners Inc. purchased a new position in shares of Turning Point Brands during the 2nd quarter valued at $18,458,000. 4D Advisors LLC lifted its holdings 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 worth $16,821,000 after acquiring an additional 127,000 shares during the last quarter. SG Americas Securities LLC grew its position in Turning Point Brands by 1,369.7% in the second quarter. SG Americas Securities LLC now owns 123,648 shares of the company's stock worth $9,369,000 after acquiring an additional 115,235 shares in the last quarter. Finally, Northern Right Capital Management L.P. grew its position in Turning Point Brands by 356.6% in the fourth quarter. Northern Right Capital Management L.P. now owns 134,354 shares of the company's stock worth $8,075,000 after acquiring an additional 104,931 shares in the last quarter. 96.12% of the stock is currently owned by hedge funds and other institutional investors.

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.