Turning Point Brands (NYSE:TPB) Shares Gap Down on Disappointing Earnings

Shares of Turning Point Brands, Inc. (NYSE:TPB) gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $136.99, but opened at $109.67. Turning Point Brands shares last traded at $105.7580, with a volume of 110,992 shares changing hands.

The company reported $0.42 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.87 by ($0.45). Turning Point Brands had a return on equity of 24.44% and a net margin of 12.02%.The company had revenue of $121.01 million during the quarter, compared to the consensus estimate of $120.42 million. During the same quarter last year, the firm posted $0.98 EPS. The firm’s quarterly revenue was up 29.2% on a year-over-year basis.

Turning Point Brands Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, April 10th. Shareholders of record on Friday, March 20th will be issued a $0.08 dividend. This is a boost from Turning Point Brands’s previous quarterly dividend of $0.08. This represents a $0.32 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date of this dividend is Friday, March 20th. Turning Point Brands’s dividend payout ratio is presently 11.27%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on TPB shares. Wall Street Zen lowered shares of Turning Point Brands from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Alliance Global Partners raised their target price on shares of Turning Point Brands from $103.00 to $110.00 and gave the stock a “buy” rating in a report on Wednesday, November 5th. Oppenheimer reaffirmed an “outperform” rating and set a $130.00 target price on shares of Turning Point Brands in a report on Wednesday, January 14th. iA Financial set a $110.00 price target on Turning Point Brands in a report on Wednesday, November 5th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Turning Point Brands in a research report on Tuesday, December 23rd. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $116.67.

Insider Buying and Selling at Turning Point Brands

In other Turning Point Brands news, Director H.C. Charles Diao sold 2,000 shares of the firm’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $108.20, for a total transaction of $216,400.00. Following the transaction, the director owned 9,804 shares of the company’s stock, valued at approximately $1,060,792.80. This trade represents a 16.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman David Edward Glazek sold 30,000 shares of the company’s stock in a transaction that occurred on Friday, December 19th. The stock was sold at an average price of $110.26, for a total transaction of $3,307,800.00. Following the completion of the sale, the chairman directly owned 127,083 shares of the company’s stock, valued at approximately $14,012,171.58. This represents a 19.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 business. First Horizon Corp acquired a new position in Turning Point Brands in the third quarter worth approximately $25,000. Kemnay Advisory Services Inc. bought a new stake in shares of Turning Point Brands during the 4th quarter worth $27,000. Empowered Funds LLC bought a new stake in shares of Turning Point Brands during the 4th quarter worth $27,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Turning Point Brands in the 3rd quarter worth $28,000. Finally, Advisory Services Network LLC acquired a new stake in shares of Turning Point Brands during the third quarter worth $28,000. 96.12% of the stock is currently owned by institutional investors.

Turning Point Brands Stock Performance

The company has a debt-to-equity ratio of 0.82, a current ratio of 5.56 and a quick ratio of 3.98. The firm has a market capitalization of $2.16 billion, a PE ratio of 40.20 and a beta of 0.87. The firm has a fifty day moving average price of $120.23 and a 200 day moving average price of $105.65.

Turning Point Brands Company Profile

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.