Turning Point Brands Stock Has Surged 53%, but One Fund Just Sold $12.5 Million in Shares

Cannell Capital reported a sale of 128,224 shares of Turning Point Brands (NYSE:TPB), an estimated $12.54 million trade based on quarterly average pricing, in its February 17, 2026, SEC filing.

What happened

In a regulatory disclosure dated February 17, 2026, Cannell Capital reported selling 128,224 shares of Turning Point Brands during the fourth quarter of 2025. The estimated transaction value was $12.54 million, calculated using the average closing price for the quarter. The fund’s quarter-end position dropped in value by $12.18 million, a figure that incorporates both share sales and changes in the underlying stock price.

What else to know

• Following the sale, the position makes up 2.73% of Cannell Capital’s 13F reportable AUM.
• Top five holdings after the filing:
  • NYSE: NOA: $15.45 million
  • NASDAQ: EOSE: $14.99 million
  • NASDAQ: SNDL: $14.54 million
  • NYSE: NPKI: $11.21 million
  • NYSE: NGS: $10.98 million
• As of Tuesday, shares of Turning Point Brands were priced at $107.57, up 53% over the past year and outperforming the S&P 500’s roughly 16% gain in the same period.

Company overview

Company snapshot

• Turning Point Brands products and services include rolling papers, cigar wraps, moist snuff, chewing tobacco, CBD isolate, and vapor products, with leading brands such as Zig-Zag and Stoker's.
• The company generates revenue primarily through the manufacture, marketing, and distribution of branded tobacco and alternative smoking products across three business segments.
• Main customers are wholesale distributors, retail merchants, and non-traditional retail channels serving convenience stores, tobacco outlets, and online platforms.

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

What this transaction means for investors

This move might be an example of Cannell locking in gains after a strong run in a niche consumer name that has quietly delivered real earnings power.

Turning Point Brands just posted full-year 2025 net sales of about $463 million, up 28%, with net income of $58 million. Adjusted EBITDA, meanwhile, climbed to about $119.5 million. The firm’s Zig-Zag rolling papers and Stoker’s moist snuff franchises continue to throw off cash, while the modern oral and alternative segments add incremental growth optionality.

Shares are up 53% over the past year, handily beating the broader market. At $107, the stock performance reflects both margin expansion and steady demand across convenience channels.

In the context of a portfolio that also holds energy storage, cannabis, and small-cap industrial names, trimming this position to less than 3% of assets reduces concentration after a strong rally but doesn’t necessarily signal an abandonment of the thesis.

The long-term story will hinge on brand durability and pricing power in a regulated industry. If management can keep volumes steady and protect margins, this will remain a cash-generative compounder.

Jonathan Ponciano 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.