Turning Point Brands (NYSE:TPB) Shares Gap Down – Should You Sell?

Turning Point Brands, Inc. (NYSE:TPB)’s stock price gapped down before the market opened on Tuesday . The stock had previously closed at $109.22, but opened at $105.56. Turning Point Brands shares last traded at $105.9750, with a volume of 1,717 shares traded.

Analyst Ratings Changes

Several research analysts have recently commented on the stock. Industrial Alliance Securities set a $110.00 price objective on shares of Turning Point Brands in a research note on Wednesday, November 5th. Weiss Ratings reissued a “buy (b-)” rating on shares of Turning Point Brands in a research report on Wednesday, December 17th. Wall Street Zen raised Turning Point Brands from a “hold” rating to a “buy” rating in a research report on Sunday. Alliance Global Partners increased their price objective on Turning Point Brands from $103.00 to $110.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. Finally, Oppenheimer lifted their target price on Turning Point Brands from $110.00 to $120.00 and gave the company an “outperform” rating in a report on Wednesday, November 19th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $102.50.

Turning Point Brands Price Performance

The firm has a market capitalization of $2.05 billion, a price-to-earnings ratio of 37.76 and a beta of 0.89. The stock’s fifty day moving average price is $98.04 and its two-hundred day moving average price is $91.24. The company has a current ratio of 5.56, a quick ratio of 3.98 and a debt-to-equity ratio of 0.82.

Turning Point Brands (NYSE:TPB) last issued its earnings results on Wednesday, November 5th. The company reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $0.81 by $0.46. Turning Point Brands had a net margin of 12.02% and a return on equity of 24.44%. The firm had revenue of $118.98 million during the quarter, compared to the consensus estimate of $111.42 million. During the same quarter in the previous year, the firm posted $0.68 earnings per share. The company’s revenue was up 12.7% compared to the same quarter last year. Equities research analysts expect that Turning Point Brands, Inc. will post 2.59 EPS for the current year.

Turning Point Brands Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 9th. Stockholders of record on Friday, December 19th will be issued a $0.075 dividend. The ex-dividend date is Friday, December 19th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 0.3%. Turning Point Brands’s dividend payout ratio is presently 10.56%.

Insider Buying and Selling at Turning Point Brands

In other news, Director Lawrence Wexler sold 10,401 shares of the business’s stock in a transaction that occurred on Thursday, November 13th. The shares were sold at an average price of $99.03, for a total transaction of $1,030,011.03. Following the completion of the sale, the director owned 280,368 shares in the company, valued at approximately $27,764,843.04. The trade was a 3.58% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gregory H.A. Baxter sold 1,500 shares of the company’s stock in a transaction on Friday, November 21st. The shares were sold at an average price of $98.23, for a total transaction of $147,345.00. Following the completion of the transaction, the director owned 38,919 shares of the company’s stock, valued at approximately $3,823,013.37. The trade was a 3.71% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 66,220 shares of company stock worth $6,650,742. 6.60% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Turning Point Brands

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. GAMMA Investing LLC boosted its stake in Turning Point Brands by 90.7% in the second quarter. GAMMA Investing LLC now owns 328 shares of the company’s stock valued at $25,000 after acquiring an additional 156 shares in the last quarter. First Horizon Corp acquired a new stake in shares of Turning Point Brands in the 3rd quarter valued at about $25,000. Caitong International Asset Management Co. Ltd purchased a new position in Turning Point Brands during the 3rd quarter worth approximately $28,000. Advisory Services Network LLC acquired a new position in Turning Point Brands during the third quarter worth approximately $28,000. Finally, Briaud Financial Planning Inc acquired a new position in Turning Point Brands during the second quarter worth approximately $31,000. 96.12% of the stock is owned by hedge funds and other 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.