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

3 days ago 9

Jonathan Ponciano, The Motley Fool

Thu, November 27, 2025 astatine 10:50 AM CST 5 min read

New York City-based Findell Capital Management added 90,000 shares of Turning Point Brands for an estimated $8.9 cardinal successful the 3rd quarter.
The determination marked a caller presumption for Findell, which reported holding nary shares of Turning Point Brands successful the erstwhile quarter.
Turning Point Brands is not among the fund’s apical 5 positions.
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New York City-based Findell Capital Management reported a caller presumption successful Turning Point Brands (NYSE:TPB) worthy astir $8.9 million, according to an SEC filing connected November 14.

According to a Securities and Exchange Commission (SEC) filing dated November 14, Findell Capital Management initiated a caller involvement successful Turning Point Brands (NYSE:TPB), purchasing 90,000 shares estimated astatine $8.9 cardinal during the 3rd quarter. This caller presumption accounts for 3.5% of the fund’s $253.4 cardinal successful reportable U.S. equity assets, bringing its full fig of positions to 15 astatine quarter-end.

Top 5 holdings aft this filing:

NASDAQ:LQDA: $64.4 cardinal (29.4% of AUM)
NASDAQ:ESTA: $53.1 cardinal (24.2% of AUM)
NASDAQ:OPRT: $15.8 cardinal (7.2% of AUM)
NASDAQ:ODP: $14.9 cardinal (6.8% of AUM)
NYSE:GEO: $11.5 cardinal (5.2% of AUM)

As of Wednesday's marketplace close, shares of TPB were priced astatine $99.56, up 60% implicit the past twelvemonth and acold outperforming the S&P 500's 13% summation successful the aforesaid period.

Metric

Value

Market Capitalization	$1.9 billion
Revenue (TTM)	$435.7 million
Net Income (TTM)	$52.4 million
Price (as of marketplace adjacent Wednesday)	$99.56

Turning Point Brands, Inc. is simply a diversified user products institution focused connected the baccy and alternate products market, operating done well-established brands and a multi-channel organisation strategy.

The institution offers branded user products, including rolling papers, baccy products, cigars, and vapor products, with cardinal brands specified arsenic Zig-Zag and Stoker's. It generates gross done manufacturing, marketing, and distributing its products crossed 3 segments: Zig-Zag Products, Stoker's Products, and NewGen Products, targeting some accepted and alternate retail channels. Primary customers see wholesale distributors, retail merchants, and idiosyncratic consumers successful convenience stores, baccy outlets, nutrient stores, wide merchandising, and online platforms.

Findell’s determination is notable due to the fact that it adds a consumer-products sanction with accelerating fundamentals astatine a clip erstwhile the steadfast has been reshaping its high-conviction portfolio—simultaneously loading up connected MLYS past 4th portion exiting Val and signaling a willingness to thin into companies displaying improving currency procreation and pricing power. Turning Point Brands fits that mold: Its latest 4th delivered 31% gross maturation to $119 cardinal and 17% adjusted EBITDA maturation to $31.3 million, driven mostly by explosive momentum successful Modern Oral products, wherever income jumped 628% twelvemonth implicit twelvemonth to $36.7 million.

That maturation helped offset weakness successful Zig-Zag, and absorption raised full-year EBITDA guidance to a scope of $115 cardinal to $120 million, reinforcing a trajectory that could substance for a concentrated capitalist similar Findell. Still, with Zig-Zag income declining 10.5% and SG&A rising 50%, volatility isn’t disconnected the table—especially for a banal that has surged 60% implicit the past twelvemonth but remains tied to category-specific dynamics. For semipermanent holders, the concern lawsuit rests connected whether Turning Point tin proceed scaling Modern Oral portion protecting margins crossed the broader portfolio.