Turning Point Brands stock hits 52-week high at $42.88 By Investing.com

Turning Point Brands Inc (NYSE:) stock soared to a 52-week high, reaching a price level of $42.88. This peak reflects a significant uptrend for the company, which has seen an impressive 1-year change with an 84.64% increase. Investors have shown increased confidence in TPB’s market position and growth prospects, contributing to the stock’s robust performance over the past year. The 52-week high milestone underscores the company’s strong financial health and the positive sentiment surrounding its strategic initiatives and future outlook.

In other recent news, Turning Point Brands has reported encouraging financial results with a 7% increase in adjusted EBITDA to over $27 million in Q2. The company also raised its projected 2024 adjusted EBITDA guidance to between $98 million and $102 million. This growth was primarily driven by an 8% revenue increase in its Zig-Zag brand, coupled with a solid performance in the cigar sector. Despite a slight 3% decline in the alternative channel during the quarter, the first half of the year saw a significant 28% rise.

In addition, the company retired a $118.5 million convertible note, closing the quarter with over $140 million in cash. Turning Point Brands revised its capital expenditure expectation from $15 million to $11 million and anticipates an effective income tax rate of 23% to 26%. Around $4 million is planned for spending on PMTAs for the full year, related to Modern Oral products.

Furthermore, Roth/MKM recently initiated coverage of Turning Point Brands with a Buy rating and a price target set at $50. The firm’s positive outlook is based on the company’s potential to expand in the modern oral category and its strategic positioning to tap into the U.S. cannabis and hemp industry.

InvestingPro Insights

Turning Point Brands Inc’s (TPB) recent surge to a 52-week high is further supported by InvestingPro data, which reveals a market capitalization of $756.21 million USD. The stock’s momentum is evident in its impressive 85.69% total return over the past year, aligning closely with the article’s reported 84.64% increase. This performance is particularly noteworthy given that TPB is trading at 99.28% of its 52-week high, confirming the stock’s strong upward trajectory.

InvestingPro Tips highlight that TPB has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns. Additionally, the company’s liquid assets exceed short-term obligations, indicating a solid financial foundation that may contribute to investor confidence.

For readers seeking a deeper understanding of TPB’s valuation and growth prospects, InvestingPro offers 7 additional tips that could provide valuable insights into the company’s future performance. These tips, along with comprehensive financial metrics, are available to InvestingPro subscribers, offering a more complete picture of Turning Point Brands’ market position and potential.

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