Zacks Investment Research Downgrades Turning Point Brands (TPB) to Hold

Zacks Investment Research lowered shares of Turning Point Brands (NYSE:TPB) from a buy rating to a hold rating in a report issued on Saturday morning.

According to Zacks, “Turning Point Brands, Inc. provides tobacco products. The Company’s product consists of moist snuff, loose leaf chewing tobacco, cigarette papers, make-your-own cigar wraps and cigar smoking tobacco, cigars and liquid and tobacco vapour. Its portfolio of brands includes Zig-Zag(R), Beech-Nut(R) and Stoker’s(R). Turning Point Brands, Inc. is based in Louisville, Kentucky. “

NYSE:TPB opened at $47.08 on Friday. The stock has a market capitalization of $801.51 million, a P/E ratio of 27.53 and a beta of 1.22. Turning Point Brands has a one year low of $19.11 and a one year high of $48.12. The company has a debt-to-equity ratio of 2.45, a current ratio of 1.75 and a quick ratio of 0.36.

Turning Point Brands (NYSE:TPB) last posted its quarterly earnings results on Tuesday, March 5th. The company reported $0.49 EPS for the quarter, missing the Zacks’ consensus estimate of $0.50 by ($0.01). The firm had revenue of $94.29 million during the quarter, compared to analyst estimates of $91.70 million. Turning Point Brands had a return on equity of 48.99% and a net margin of 7.64%. The firm’s revenue for the quarter was up 28.2% on a year-over-year basis. During the same quarter last year, the business posted $0.39 earnings per share. On average, analysts predict that Turning Point Brands will post 2.08 EPS for the current year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 12th. Shareholders of record on Friday, March 22nd will be issued a $0.045 dividend. The ex-dividend date is Thursday, March 21st. This represents a $0.18 dividend on an annualized basis and a yield of 0.38%. Turning Point Brands’s dividend payout ratio is currently 10.53%.

A number of hedge funds and other institutional investors have recently modified their holdings of TPB. Dimensional Fund Advisors LP lifted its stake in shares of Turning Point Brands by 22.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 309,302 shares of the company’s stock valued at $8,420,000 after purchasing an additional 56,845 shares during the last quarter. Thrivent Financial for Lutherans lifted its stake in shares of Turning Point Brands by 68.8% in the 4th quarter. Thrivent Financial for Lutherans now owns 1,087,653 shares of the company’s stock valued at $29,606,000 after purchasing an additional 443,344 shares during the last quarter. Municipal Employees Retirement System of Michigan acquired a new stake in shares of Turning Point Brands in the 4th quarter valued at $487,000. Metropolitan Life Insurance Co. NY lifted its stake in shares of Turning Point Brands by 356.4% in the 4th quarter. Metropolitan Life Insurance Co. NY now owns 2,825 shares of the company’s stock valued at $77,000 after purchasing an additional 2,206 shares during the last quarter. Finally, D. E. Shaw & Co. Inc. acquired a new stake in shares of Turning Point Brands in the 4th quarter valued at $373,000. 30.12% of the stock is currently owned by hedge funds and other institutional investors.

About Turning Point Brands

Turning Point Brands, Inc, together with its subsidiaries, provides other tobacco products primarily in the United States. It operates through three segments: Smokeless Products, Smoking Products, and NewGen Products. The Smokeless Products segment manufactures and markets moist snuff; and contracts for and markets loose leaf chewing tobacco products.

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