Turning Point Brands, Inc. (NYSE:TPB) has reported a recent transaction involving a company insider. Gregory H.A. Baxter (NYSE:BAX), a director of the company, sold 5,683 shares of common stock on August 23, 2024. The total value of the shares sold amounted to approximately $224,989, with the shares being sold at a weighted average price of $39.59. The transactions took place in multiple lots, with prices ranging from $39.50 to $39.68 per share.
The sale was publicly disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. Following the sale, Baxter's remaining holdings in Turning Point Brands include a combination of restricted stock units and common stock, which together total 40,861 shares. The disclosure noted that the reported total ownership includes 2,415 restricted stock units and 38,446 shares of common stock.
Turning Point Brands, based in Louisville, Kentucky, is known for its manufacturing of tobacco products. The company has a diverse portfolio of products, including moist snuff, chewing tobacco, and various smoking cessation products.
Investors often monitor insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. While the reasons behind Baxter's decision to sell shares were not disclosed in the filing, such transactions are part of routine financial planning for many executives and board members.
The sale by Baxter represents a significant transaction and is part of the ongoing financial disclosures required by company insiders. Shareholders and potential investors in Turning Point Brands can view these filings to stay informed about the financial activities of the company's key individuals.
In other recent news, Turning Point Brands reported strong second-quarter performance, with a 7% increase in adjusted EBITDA to over $27 million. This robust performance led the company to raise its projected 2024 adjusted EBITDA guidance to a range of $98 million to $102 million. The growth was primarily driven by an 8% revenue increase in its Zig-Zag brand, attributed to the expansion in North American papers and wrap businesses, and a strong performance in the cigar sector.
Despite a slight decline in the alternative channel during the quarter, it has seen a substantial 28% rise in the first half of the year. The company is also diversifying its product offerings, with significant growth in its Stoker's and FRE brands.
These are recent developments, and it's worth noting that the company retired a $118.5 million convertible note and ended the quarter with over $140 million in cash. Turning Point Brands has revised its capital expenditure expectation from $15 million to $11 million and anticipates an effective income tax rate of 23% to 26%.
The company is planning to spend approximately $4 million on PMTAs for the full year, related to Modern Oral products. Despite a slight decline in gross margin, the company's consolidated Q2 sales were up 2.8% year-over-year to $108.5 million, indicating a strong financial position.
InvestingPro Insights
Turning Point Brands, Inc. (NYSE:TPB) has been demonstrating financial robustness and growth that merits attention. According to data from InvestingPro, the company has a market capitalization of $695.45 million and a healthy P/E ratio of 15.07, which adjusts slightly to 14.33 when looking at the last twelve months as of Q2 2024. This suggests that the company is reasonably valued in relation to its earnings.
Moreover, the company's commitment to returning value to shareholders is evident with its dividend growth, which has increased for 7 consecutive years. The most recent dividend yield stands at 0.71%, and the company's ability to consistently raise its dividend is a positive indicator for investors looking for steady income streams. This is further supported by the company's strong free cash flow yield, which is a focal point in one of the InvestingPro Tips indicating a valuation that implies robust free cash flow.
Investors looking to understand the momentum of Turning Point Brands can note the considerable price uptick over the last six months, with a 73.87% total return. This is complemented by a high return over the last year of 61.59%, showcasing the company's strong performance in the market.
For those interested in more detailed analysis and additional insights, InvestingPro offers a comprehensive list of tips, including the prediction by analysts that the company will be profitable this year, and the fact that the company has been profitable over the last twelve months. These insights, among others, can be found on the dedicated InvestingPro page for Turning Point Brands: https://www.investing.com/pro/TPB, which lists several more tips to guide potential investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.