Why This Fund Trimmed $4 Million of Turning Point Brands Despite Surging Oral Nicotine Sales

1 week ago 5

Jonathan Ponciano, The Motley Fool

Sun, May 10, 2026 astatine 10:06 AM CDT 4 min read

Crown Advisors Management, Inc. reduced its involvement successful Turning Point Brands (NYSE:TPB) by 35,000 shares successful the archetypal quarter, an estimated $3.90 cardinal commercialized based connected quarterly mean pricing, according to its May 7, 2026, SEC filing.

What happened

According to a filing with the Securities and Exchange Commission dated May 7, 2026, Crown Advisors Management, Inc. sold 35,000 shares of Turning Point Brands successful the archetypal quarter. The transaction's estimated worth was $3.90 million, based connected the mean closing terms for the quarter. The holding's worth astatine quarter-end fell by $4.12 million, a fig that includes some the stock merchantability and underlying terms changes.

What other to cognize

This simplification leaves TPB astatine 0.86% of the fund's 13F assets arsenic of March 31, 2026.
Top holdings aft the filing:
- NYSE:FIX: $17.93 cardinal (11.9% of AUM)
- NASDAQ:LRCX: $10.68 cardinal (7.1% of AUM)
- NASDAQ:NVDA: $10.46 cardinal (6.9% of AUM)
- NASDAQ:STRL: $8.14 cardinal (5.4% of AUM)
- NASDAQ:LOPE: $7.65 cardinal (5.1% of AUM)
As of May 7, 2026, TPB shares were priced astatine $90.22, up 22% from 1 twelvemonth earlier, compared to a 30% summation for the S&P 500 successful the aforesaid period.

Company overview

Metric

Value

Price (as of marketplace adjacent 2026-05-07)	$90.22
Market Capitalization	$1.74 billion
Revenue (TTM)	$463.1 million
Net Income (TTM)	$58.2 million

Company snapshot

Turning Point Brands, Inc. offers branded user products, including rolling papers, cigars, moist snuff, chewing tobacco, and vapor products nether brands specified arsenic Zig-Zag and Stoker's.
The institution generates gross done manufacturing, marketing, and distributing baccy and alternate products crossed 3 segments: Zig-Zag Products, Stoker's Products, and NewGen Products.
Primary customers see wholesale distributors, retail merchants, and convenience stores, arsenic good arsenic idiosyncratic consumers via online platforms.

Turning Point Brands, Inc. is simply a diversified user products institution with a absorption connected baccy and next-generation alternatives. The institution leverages established brands and a wide organisation web to support beardown marketplace positions successful some accepted and emerging merchandise categories. Its multi-segment strategy enables it to code evolving user preferences and regulatory environments successful the baccy and alternate products industry.

What this transaction means for investors

Turning Point Brands’ banal has underperformed the S&P but not by excessively much, and the firm’s latest 4th showed wherefore investors person stayed interested. Modern Oral nett income surged 133% twelvemonth implicit twelvemonth to $52 cardinal and present relationship for 42% of full institution sales, up from conscionable 21% a twelvemonth ago. Total gross climbed 16.8% to $124.3 million, prompting absorption to rise full-year Modern Oral income guidance to arsenic precocious arsenic $225 cardinal from a caller high-end of $190 million.

There were immoderate softer spots beneath the header growth. Net income fell 19% to $11.7 million, portion Zig-Zag conception income dropped 22.4% due to the fact that of weaker wraps and papers shipments, and selling and selling expenses besides jumped sharply arsenic the institution poured wealth into expanding its oral nicotine business.

Ultimately, this merchantability looks similar a hazard absorption determination aft a beardown tally arsenic opposed to a large nonaccomplishment of assurance successful Turning Point. The banal has climbed much than 20% implicit the past year, and with tobacco-adjacent names facing changeless regulatory and user inclination uncertainty, trimming vulnerability aft gains is not particularly surprising.

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