This Small-Cap Consumer Stock Has Landed New Institutional Backing as Shares Surge 60%

TPB +0.81%

Key Points

• New York City-based Findell Capital Management added 90,000 shares of Turning Point Brands for an estimated $8.9 million in the third quarter.

• The move marked a new position for Findell, which reported holding no shares of Turning Point Brands in the previous quarter.

• Turning Point Brands is not among the fund’s top five positions.

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New York City-based Findell Capital Management reported a new position in Turning Point Brands (NYSE:TPB) worth approximately $8.9 million, according to an SEC filing on November 14.

What Happened

According to a Securities and Exchange Commission (SEC) filing dated November 14, Findell Capital Management initiated a new stake in Turning Point Brands (NYSE:TPB), purchasing 90,000 shares estimated at $8.9 million during the third quarter. This new position accounts for 3.5% of the fund’s $253.4 million in reportable U.S. equity assets, bringing its total number of positions to 15 at quarter-end.

What Else to Know

Top five holdings after this filing:

• NASDAQ:LQDA: $64.4 million (29.4% of AUM)

• NASDAQ:ESTA: $53.1 million (24.2% of AUM)

• NASDAQ:OPRT: $15.8 million (7.2% of AUM)

• NASDAQ:ODP: $14.9 million (6.8% of AUM)

• NYSE:GEO: $11.5 million (5.2% of AUM)

As of Wednesday's market close, shares of TPB were priced at $99.56, up 60% over the past year and far outperforming the S&P 500's 13% gain in the same period.

Company Overview

Metric

Value

Market Capitalization

$1.9 billion

Revenue (TTM)

$435.7 million

Net Income (TTM)

$52.4 million

Price (as of market close Wednesday)

$99.56

Company Snapshot

Turning Point Brands, Inc. is a diversified consumer products company focused on the tobacco and alternative products market, operating through well-established brands and a multi-channel distribution strategy.

The company offers branded consumer products, including rolling papers, tobacco products, cigars, and vapor products, with key brands such as Zig-Zag and Stoker's. It generates revenue through manufacturing, marketing, and distributing its products across three segments: Zig-Zag Products, Stoker's Products, and NewGen Products, targeting both traditional and alternative retail channels. Primary customers include wholesale distributors, retail merchants, and individual consumers in convenience stores, tobacco outlets, food stores, mass merchandising, and online platforms.

Foolish Take

Findell’s move is notable because it adds a consumer-products name with accelerating fundamentals at a time when the firm has been reshaping its high-conviction portfolio—simultaneously loading up on MLYS last quarter while exiting Val and signaling a willingness to lean into companies displaying improving cash generation and pricing power. Turning Point Brands fits that mold: Its latest quarter delivered 31% revenue growth to $119 million and 17% adjusted EBITDA growth to $31.3 million, driven largely by explosive momentum in Modern Oral products, where sales jumped 628% year over year to $36.7 million.That growth helped offset weakness in Zig-Zag, and management raised full-year EBITDA guidance to a range of $115 million to $120 million, reinforcing a trajectory that could matter for a concentrated investor like Findell. Still, with Zig-Zag sales declining 10.5% and SG&A rising 50%, volatility isn’t off the table—especially for a stock that has surged 60% over the past year but remains tied to category-specific dynamics. For long-term holders, the investment case rests on whether Turning Point can continue scaling Modern Oral while protecting margins across the broader portfolio.

Glossary

13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC if they exceed $100 million.Position: The amount of a particular security or investment held by an individual or institution.Stake: The ownership interest or share an investor holds in a company.AUM (Assets Under Management): The total market value of investments managed by a fund or firm on behalf of clients.Quarter-end: The last day of a fiscal quarter, used as a reporting reference point for financial data.Outperforming: Achieving a higher return than a specific benchmark or index over a given period.Multi-channel distribution: A strategy using multiple sales channels (such as retail, online, and wholesale) to reach customers.Wholesale distributors: Companies that buy products in bulk from manufacturers and sell them to retailers or other businesses.TTM: The 12-month period ending with the most recent quarterly report.Alternative retail channels: Non-traditional sales outlets, such as online platforms or specialty stores, outside standard retail stores.

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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Turning Point Brands. The Motley Fool has a disclosure policy.

This Small-Cap Consumer Stock Has Landed New Institutional Backing as Shares Surge 60% was originally published by The Motley Fool