Is Turning Point Brands Stock a Buy After Investment Firm Cannell Capital Raises Its Stake to Nearly $20 Million?
Key Points
Cannell Capital increased its position in Turning Point Brands by 119,821 shares, representing a value change of $13.24 million.
The purchase resulted in Turning Point Brands stock rising to 2.7% of the fund’s 13F reportable assets under management.
Cannell Capital's post-trade stake totaled 180,100 shares valued at $17.80 million.
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What happened
Investment advisor Cannell Capital LLC reported a substantial increase in its holdings of Turning Point Brands (NYSE:TPB), according to a United States Securities and Exchange Commission (SEC) filing dated November 14, 2025.
The fund added 119,821 shares during the third quarter, bringing its total position to 180,100 shares, with a quarter-end market value of $17.80 million. The transaction occurred amid normal trading activity for the fund.
What else to know
The buy increased Cannell’s stake to 2.71% of reportable assets under management.
Cannell’s top five holdings after the filing are:
- IWM: $267.99 million (41% of AUM)
- SNDL: $23.99 million (3.7% of AUM)
- CMPO: $20.93 million (3.2% of AUM)
- CVCO: $18.68 million (2.8% of AUM)
- NOA: $18.52 million (2.8% of AUM)
As of November 14, 2025, shares were priced at $101.22, up 75% over the past year, outperforming the S&P 500 by 62 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Price (as of market close 11/14/25) | $101.22 |
| Market capitalization | $1.93 billion |
| Revenue (TTM) | $435.72 million |
| Net income (TTM) | $52.37 million |
Company Snapshot
- Turning Point Brands, Inc. generates revenue through the manufacture, marketing, and distribution of branded consumer products including rolling papers, moist snuff tobacco, chewing tobacco, cigars, and vapor products.
- The company operates a diversified business model across three segments: Zig-Zag Products (rolling papers and cigar wraps), Stoker's Products (moist snuff and chewing tobacco), and NewGen Products (vapor and cannabidiol products), selling primarily to wholesale distributors and retail merchants.
- Primary customers include independent and chain convenience stores, tobacco outlets, food stores, mass merchandisers, and drug stores across the United States.
Turning Point Brands, Inc. is a consumer products company in the tobacco and alternative products sector, leveraging a portfolio of established brands such as Zig-Zag and Stoker's.
The company's multi-segment strategy enables it to serve both traditional tobacco consumers and those seeking alternative products. Turning Point Brands sells its products to wholesale distributors and retail merchants and offers diversified branded products.
Foolish take
Cannell Capital's stake in Turning Point Brands (TPB) increased substantially in the third quarter, boosting TPB to the sixth largest holding and 2.7% of assets under management. In Q2, the stock had represented 1.4% of AUM.
This suggests Cannell Capital sees upside in TPB. It's easy to see why. Turning Point Brands is having a stellar year. In the third quarter, sales rose a robust 31% year over year to $119 million.
This helped TPB's Q3 net income to increase 70% over 2024 to $21 million, resulting in Q3 diluted earnings per share of $1.13 compared to the prior year's $0.68.
A key driver of TPB's success has been its Modern Oral line of nicotine pouches, which saw Q3 sales soar 628% year over year to $37 million. The strong growth led the company to raise its 2025 Modern Oral sales forecast to a range between $125 million to $130 million. This is a huge increase over the original guidance of $60 million to $80 million.
TBP's outstanding Q3 results led to shares hitting a 52-week high of $110.55 on Nov. 5. The company looks like a solid investment, which explains Cannell Capital's decision to significantly raise its holding in the stock, but with a price-to-earnings ratio that has steadily increased over 2025, investors may want to wait for shares to dip a bit before buying.
Glossary
Assets under management (AUM): The total market value of investments managed by a fund or investment firm.
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC in Form 13F filings.
Stake: The ownership interest or number of shares held in a company by an investor or fund.
Holding: A specific investment or asset owned within a portfolio or fund.
Outperforming: Achieving a higher return or growth rate compared to a benchmark or index, such as the S&P 500.
Market capitalization: The total value of a company's outstanding shares, calculated as share price times shares outstanding.
Wholesale distributors: Companies that buy products in bulk from manufacturers to resell them to retailers or other businesses.
Quarter-end: The last day of a fiscal quarter, often used as a reference point for financial reporting.
Multi-segment strategy: A business approach involving multiple distinct product lines or divisions to serve different markets.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends SNDL and Turning Point Brands. The Motley Fool has a disclosure policy.
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