Turning Point Brands (NYSE:TPB) Trading Down 22.2% - What's Next?

Key Points

• Shares fell 22.2% intraday to about $67.52 on Wednesday, with 140,161 shares traded—roughly 62% below the stock's average session volume.
• Analyst sentiment is mixed: three Buys, one Hold and one Sell produce an average rating of "Hold" and an average price target of $116.67, with Oppenheimer at $130 and Zacks downgrading to "strong sell."
• The company declared a quarterly dividend of $0.08 per share (ex-dividend March 20, payable April 10; ~0.4% yield), and CFO Andrew Flynn sold 2,000 shares, reducing his holding by about 17.5%.

Shares of Turning Point Brands, Inc. (NYSE:TPB - Get Free Report) traded down 22.2% during mid-day trading on Wednesday . The company traded as low as $71.14 and last traded at $67.5230. 140,161 shares changed hands during trading, a decline of 62% from the average session volume of 367,590 shares. The stock had previously closed at $86.79.

Analyst Ratings Changes

Several equities analysts have commented on TPB shares. Oppenheimer reaffirmed an "outperform" rating and issued a $130.00 price objective on shares of Turning Point Brands in a research report on Wednesday, January 14th. Zacks Research lowered shares of Turning Point Brands from a "hold" rating to a "strong sell" rating in a research note on Monday, March 2nd. Weiss Ratings restated a "buy (b-)" rating on shares of Turning Point Brands in a report on Tuesday, December 23rd. Finally, Wall Street Zen downgraded shares of Turning Point Brands from a "buy" rating to a "hold" rating in a research note on Saturday, January 17th. Three research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Turning Point Brands currently has an average rating of "Hold" and an average price target of $116.67.

Turning Point Brands Stock Down 16.6%

The stock has a market cap of $1.40 billion, a PE ratio of 23.37 and a beta of 0.85. The business has a fifty day moving average of $112.00 and a 200-day moving average of $104.41. The company has a debt-to-equity ratio of 0.79, a current ratio of 5.56 and a quick ratio of 4.12.

Turning Point Brands Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Friday, March 20th will be given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Friday, March 20th. This is a positive change from Turning Point Brands's previous quarterly dividend of $0.08. Turning Point Brands's dividend payout ratio is currently 10.22%.

Insider Activity at Turning Point Brands

In other news, CFO Andrew Flynn sold 2,000 shares of the firm's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $97.57, for a total transaction of $195,140.00. Following the transaction, the chief financial officer owned 9,443 shares in the company, valued at approximately $921,353.51. This trade represents a 17.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 6.60% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Covestor Ltd lifted its position in shares of Turning Point Brands by 16.3% in the 4th quarter. Covestor Ltd now owns 663 shares of the company's stock worth $72,000 after purchasing an additional 93 shares during the period. Osaic Holdings Inc. increased its holdings in Turning Point Brands by 5.5% during the fourth quarter. Osaic Holdings Inc. now owns 1,888 shares of the company's stock valued at $205,000 after buying an additional 98 shares during the period. Arizona State Retirement System raised its stake in Turning Point Brands by 2.2% in the third quarter. Arizona State Retirement System now owns 5,297 shares of the company's stock worth $524,000 after buying an additional 114 shares in the last quarter. GAMMA Investing LLC lifted its holdings in Turning Point Brands by 33.4% during the fourth quarter. GAMMA Investing LLC now owns 491 shares of the company's stock worth $53,000 after buying an additional 123 shares during the period. Finally, CWM LLC lifted its holdings in Turning Point Brands by 6.2% during the fourth quarter. CWM LLC now owns 2,706 shares of the company's stock worth $293,000 after buying an additional 157 shares during the period. 96.12% of the stock is currently owned by institutional investors.

About Turning Point Brands

Turning Point Brands, Inc NYSE: TPB is a U.S.-based consumer products company focused on the manufacture, marketing and distribution of smokeless tobacco, vaping and cigar products. Headquartered in Old Hickory, Tennessee, the company serves retail outlets across all 50 states through a direct-store-delivery network and select third-party distributors. Turning Point Brands operates two reporting segments—Smokeless Products and Cigar—and leverages its logistics capabilities to offer a broad portfolio of brands and SKUs.

In its Smokeless Products segment, Turning Point Brands produces moist smokeless tobacco under leading brand names such as Grizzly, Kodiak and Stoker's.

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