In a recent transaction, Lawrence Wexler, a director at Turning Point Brands, Inc. (NYSE:TPB), sold 4,695 shares of the company's common stock, resulting in a total sale value exceeding $148,000. The shares were sold at a weighted average price of $31.57, with individual transactions ranging from $31.29 to $31.80.
This sale followed Wexler's exercise of options under the company's 2006 Equity Incentive Plan. The exercised options allowed the acquisition of the same number of shares at a price of $3.83 each, amounting to a total of approximately $17,981.
Turning Point Brands, known for its products in the tobacco industry, has seen its stock price fluctuate in recent times. The transactions by Wexler occurred on June 11, 2024, as reported in the company's latest SEC filing.
It is not uncommon for company executives and directors to engage in stock transactions; however, the sale of a significant number of shares can sometimes attract the attention of investors seeking to understand insider perspectives on the company's performance and future prospects.
The SEC filing also detailed Wexler's remaining holdings in the company, which include a substantial number of common stock shares and various options under different incentive plans, with expiration dates extending as far as 2031.
Investors often monitor such filings to gain insights into the actions of company insiders, which can include both the acquisition and disposition of company stock. The recent transactions by Wexler are part of the ongoing financial activities within Turning Point Brands as reported to the SEC.
In other recent news, Turning Point Brands reported a significant 21.6% increase in its first-quarter adjusted EBITDA for the year 2024, reaching $25.3 million. The company's Zig-Zag brand witnessed an 11.5% rise in revenue to $46.7 million, largely attributed to robust sales of Zig-Zag papers and growth in the alternative channel. Concurrently, Stoker's brand also reported an 8% revenue boost to $36.4 million, thanks to market share gains and the successful national launch of its Modern Oral product, FRE.
Despite a slight 3.9% decline in overall Q1 sales to $97.1 million, Turning Point Brands has reaffirmed its full-year guidance for an adjusted EBITDA of $95 million to $100 million. The company's gross margin improved to 53.5%, attributed to favorable segment and product mix, and it ended the quarter with a strong cash position of over $130 million.
In terms of future expectations, Turning Point Brands aims to continue expanding its portfolio and satisfying consumer demand by increasing market share through product diversification and shelf space expansion. The company's focus on alternative channel penetration has been highlighted as a key driver for its strong performance.
InvestingPro Insights
Turning Point Brands, Inc. (NYSE:TPB) has demonstrated a solid track record of rewarding shareholders, as evidenced by the company's consistent dividend increases over the past seven years. This commitment to shareholder returns aligns with the recent sale of shares by director Lawrence Wexler. Investors may find comfort in the company's financial health, particularly its strong free cash flow yield and low earnings multiple, which suggest that the stock could be undervalued.
The company's market capitalization stands at $554.56 million, reflecting a sizeable presence in the tobacco industry. With a price-to-earnings (P/E) ratio of 13.14 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 12.06, Turning Point Brands trades at a lower multiple than many of its peers, potentially offering an attractive entry point for value investors. Moreover, the company's dividend yield as of March 21, 2024, is 0.89%, which, coupled with a dividend growth rate of 7.69% over the last twelve months, could be appealing for income-focused investors.
With a significant price appreciation of 30.12% over the last six months and a year-to-date return of 19.62%, the stock has shown robust performance, which might indicate investor confidence in the company's trajectory. For those interested in diving deeper into Turning Point Brands' financials and future outlook, there are additional InvestingPro Tips available on InvestingPro that can provide further guidance. Subscribers can access these tips and more with an exclusive offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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