$TPB

Turning Point Brands, Inc. (TPB) filed an SEC Form 8-K — Results of Operations and Financial Condition. EX-99.1 2 ex_969512.htm EXHIBIT 99.1 ex_969512.htm Exhibit 99.1 Turning Point Brands Announces Second Quarter 2026 Results ● Q2 2026 Modern Oral Gross Revenue increased 149% to $87.0 million and Net Sales increased 128% to $68.4 million. Accounting for 48% of total company net sa

Turning Point Brands (NYSE:TPB) reported first-quarter results on May 7. Revenue rose 17% year over year to $124.3 million, driven by growth in its Modern Oral nicotine pouch segment. Gross profit increased 14.6% to $68.3 million, while adjusted EBITDA fell 6.5% to $25.9 million as margins contracted to 20.8%. The company said it is investing in sales, marketing, and manufacturing and targets double-digit market share by 2030.

Crown Advisors Management, Inc. reduced its stake in Turning Point Brands (NYSE:TPB) by 35,000 shares, an estimated $3.90 million trade, in the first quarter of 2026. This divestment occurred despite Turning Point Brands being a diversified consumer products company focused on tobacco and next-generation alternatives with strong market positions. The fund's holding value in TPB decreased by $4.12 million, reflecting both the share sale and underlying price changes.

M&T Bank Corp significantly increased its stake in Turning Point Brands, Inc. (NYSE:TPB) by 712.5% in the fourth quarter, now owning 19,499 shares valued at approximately $2.11 million. This makes M&T Bank Corp a 0.10% owner of the company, which has an overall institutional ownership of about 96.1%. Despite this, some insider selling occurred, with CFO Andrew Flynn reducing his holding by 17.48% in March.

Turning Point Brands (TPB) stock fell 15.5% this week due to reports of slower Food and Drug Administration (FDA) approvals for nicotine pouches, a fast-growing segment for the company. The FDA's hesitation stems from concerns over unknown health impacts and use among younger individuals, reminiscent of the vaping epidemic. Despite the company's stock being down significantly from its highs, its diverse revenue streams from rolling papers, chewing tobacco, and nicotine pouches could make it an attractive buy for investors who see the FDA issues as a temporary setback.

The article discusses the reasons behind the significant drop in Turning Point Brands stock this week. Investors reacted negatively to a ruling from the U.S. International Trade Commission and a subsequent short-seller report. These events raise concerns about the company's vaping product sales and its overall financial outlook.

Turning Point Brands (TPB) faces temporary profitability headwinds in 2026 due to cautious guidance and increased spending on its nicotine pouch business, despite strong recent fundamentals. Its most followed narrative suggests the stock is undervalued at $121.25 compared to its current price of $92.88, driven by growth in premium brands. However, a market multiple perspective shows a P/E ratio above industry averages, indicating potentially full pricing for its growth forecasts, suggesting investors should consider both the undervaluation narrative and potential risks.

Cannell Capital sold 128,224 shares of Turning Point Brands (TPB) in late 2025, valued at an estimated $12.54 million, despite the stock having surged 53% over the past year. This transaction reduced Cannell Capital's holding to 2.73% of its AUM, potentially reflecting a strategy to lock in gains after a strong rally rather than an abandonment of the company's long-term prospects. Turning Point Brands, a diversified consumer products company in the tobacco and alternative smoking sector, continues to show strong performance with increasing net sales and adjusted EBITDA.

Turning Point Brands (TPB) exceeded Q3 revenue and EBITDA expectations, driven by its Modern Oral segment. The stock has seen significant returns and is currently trading slightly above its fair value estimate of $121.25. While the Modern Oral segment's growth is a key driver, the company's valuation hinges on sustained growth and regulatory factors.

Voya Investment Management LLC has significantly reduced its stake in Turning Point Brands (NYSE:TPB) by 61.5%, selling 9,875 shares and retaining 6,184 shares valued at $611,000. Despite this, institutional investors collectively own 96.12% of the company, and analysts maintain a consensus "Buy" rating with a target price of $102.50. However, company insiders have recently sold a substantial amount of shares worth nearly $10 million, even after the company beat Q3 earnings estimates.