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Turning Point Brands, Inc. (NYSE:TPB) director Gregory H.A. Baxter (NYSE:BAX) recently sold 2,000 shares of company stock, totaling $78,840 in transaction value. According to the latest filings, the shares were sold at an average price of $39.42, with the transactions occurring at prices ranging from $39.35 to $39.51.
The sale, which took place on August 20, 2024, was disclosed in a regulatory filing with the Securities and Exchange Commission. Following the sale, Baxter's holdings in Turning Point Brands decreased to 46,544 shares, which includes 2,415 restricted stock units and 44,129 shares of common stock, as indicated by the footnotes in the filing.
Turning Point Brands, headquartered in Louisville, Kentucky, operates in the tobacco industry and is known for manufacturing a variety of smoking cessation products, smokeless products, and new generation products like vaping.
Investors often monitor insider transactions as they can provide insights into how the company's leadership views the stock's value and future performance. Baxter's recent stock sale may be of interest to shareholders and potential investors as they assess the company's current financial standing and future prospects.
It is important for investors to consider the context of such transactions and to keep an eye on the company's ongoing performance and any potential market or industry shifts that may impact Turning Point Brands' operations and stock price.
In other recent news, Turning Point Brands (TPB) reported a robust performance in its second quarter, with a 7% increase in adjusted EBITDA to over $27 million. The company's future financial health appears promising as it raised its projected 2024 adjusted EBITDA guidance to a range of $98 million to $102 million. This 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, along with a strong performance in the cigar sector. Despite a 3% decline in the alternative channel during the quarter, it saw a significant 28% rise in the first half of the year. TPB is also diversifying its product offerings, with notable growth in its Stoker's and FRE brands. In addition, TPB retired a $118.5 million convertible note and ended the quarter with over $140 million in cash. The company revised its capital expenditure expectation from $15 million to $11 million and anticipates an effective income tax rate of 23% to 26%. These recent developments indicate a positive trajectory for TPB's financial performance.
InvestingPro Insights
Turning Point Brands, Inc. (NYSE:TPB) has been performing notably in the market, with several metrics reflecting a strong financial posture. An InvestingPro Tip highlights that the company has raised its dividend for 7 consecutive years, which is a testament to its commitment to returning value to shareholders. This is further supported by the company's current dividend yield of 0.71%, and a dividend growth rate over the last twelve months of 7.69%, as of Q2 2024.
Another InvestingPro Tip points out that Turning Point Brands is trading near its 52-week high, with the price at 97.47% of its peak. This reflects investor confidence and a robust market performance, which is corroborated by a 63.98% one-year price total return. The company's valuation also implies a strong free cash flow yield, which is an indicator of its ability to generate cash and fund operations, growth, and shareholder distributions.
From the InvestingPro Data, Turning Point Brands has a market capitalization of $700.41 million and a P/E ratio of 15.14, adjusted to 14.52 for the last twelve months as of Q2 2024. This P/E ratio suggests the stock is reasonably valued in the current market. Additionally, the company has shown an impressive gross profit margin of 51.29% for the same period, indicating efficient control over its cost of goods sold and strong pricing power.
For those interested in further insights and metrics, there are additional InvestingPro Tips available at https://www.investing.com/pro/TPB, providing a deeper dive into the company's performance and potential investment value.
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