Turning Point Brands, Inc. (NYSE:TPB), a prominent player in the tobacco industry, disclosed a significant purchase of shares by Chief Revenue Officer Frein Summer. According to the latest filings, Summer acquired 2,260 shares of common stock at a price of $30.96 per share, totaling an investment of $69,969.
This transaction took place on June 13, 2024, as reported in the company's recent SEC filing. The purchase has increased Summer's direct ownership in the company to 17,203 shares. Additionally, the filing noted that Summer's total reported holdings include 12,221 restricted stock units (RSUs) and 4,982 shares of common stock.
Investors often monitor insider transactions such as these to gain insight into executives' confidence in their company's future performance. Turning Point Brands, based in Louisville, Kentucky, operates within the tobacco sector under the SIC code 2100 and is incorporated in Delaware.
It's worth noting that Frein Summer also has options under the Turning Point Brands, Inc. 2021 Equity Incentive Plan, which are set to vest over the next few years. These options will become exercisable for a third of the underlying shares at the start of 2023, another third at the beginning of 2024, and the final portion at the beginning of 2025.
The company's stock, traded on the New York Stock Exchange under the ticker TPB, may be influenced by such insider transactions, although it's one of many factors investors consider when evaluating a stock's potential.
In other recent news, Turning Point Brands reported a significant increase in its first-quarter adjusted EBITDA for 2024, with a rise of 21.6% to $25.3 million. The company's brands, Zig-Zag and Stoker's, both experienced revenue growth, with Zig-Zag seeing an 11.5% increase to $46.7 million, while Stoker's reported an 8% boost to $36.4 million. Despite a 3.9% decline in overall Q1 sales to $97.1 million, Turning Point Brands reaffirmed its guidance for an adjusted EBITDA of $95 million to $100 million for the full year.
These recent developments indicate a strong performance from the company's brands, especially Zig-Zag papers, which benefited from growth in the alternative channel. Stoker's also gained from market share increases and the national launch of its Modern Oral product, FRE. However, the company's Q1 sales saw a slight decrease, primarily due to the performance of CDS.
Turning Point Brands maintains its full-year adjusted EBITDA guidance and aims to continue expanding its portfolio and satisfying consumer demand. The focus remains on increasing market share through product diversification and shelf space expansion. Despite some concerns over the sustainability of Stoker's market growth, the company ended the quarter with a strong cash position of over $130 million.
InvestingPro Insights
Turning Point Brands, Inc. (NYSE:TPB) has recently seen significant insider activity, which may be a signal to investors regarding the company's prospects. In light of this, several metrics and insights from InvestingPro could help investors form a more complete picture of the company's financial health and potential for growth.
An important metric for investors to consider is the company's P/E Ratio, which currently stands at 12.68. This indicates that TPB is trading at a low earnings multiple, potentially signaling an undervalued stock in comparison to earnings. Furthermore, the company has demonstrated a strong track record of profitability, with a positive return on assets of 7.44% over the last twelve months as of Q1 2024.
InvestingPro Tips highlight that Turning Point Brands has raised its dividend for 7 consecutive years, with a recent dividend yield of 0.91%. Additionally, the company's liquid assets exceed its short-term obligations, which suggests a healthy financial position for meeting immediate liabilities.
For investors seeking more comprehensive analysis and additional tips, InvestingPro offers detailed insights that could further inform investment decisions. There are currently 6 additional InvestingPro Tips available for TPB, which can be accessed at: https://www.investing.com/pro/TPB. Moreover, using the coupon code PRONEWS24, investors can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable information to guide their investment strategies.
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