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SWBI - Smith & Wesson Brands Inc News Story

$21.6 0.1  0.4%

Last Trade - 24/09/21

Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £758.6m
Enterprise Value £662.3m
Revenue £806.8m
Position in Universe 2943rd / 7172

BUZZ-Gun stocks slide, surrender strong recent gains

Fri 2nd July, 2021 5:11pm
** Firearms stocks pull back on Fri with Smith & Wesson
 SWBI.O  and Sturm Ruger & Co  RGR.N  falling 12% and 6%,
respectively
    ** Ammunition and outdoor products seller Vista Outdoor
 VSTO.N  off 8%, while ammunition maker Ammo Inc's  POWW.O 
stock down ~5% on Fri
    ** Cowen research analyst Cai von Rumohr in note says SWBI's
78% run through Thurs close after its Jun 18 investor day and
blowout results was likely bolstered by stock's increased
weighting in the Russell 2000
    ** The index rebalancing could create some near term
digestion risk, von Rumohr says, but thinks SWBI's fundamental
story is intact and hikes his PT to $38 from $30.50
    ** SWBI, after market close on Jun 17, blew away Q4
consensus estimates and boosted its qtrly dividend by 60%
 urn:newsml:reuters.com:*:nL2N2NZ2V8
    ** Over the next 10 trading sessions, VSTA gained ~12% and
RGR rose 14%. POWW rallied nearly 30% during that time frame,
including ~11% pop on Jun 30 after co pointed to "exceedingly
strong" demand  urn:newsml:reuters.com:*:nL2N2OC0XX
    ** Meanwhile, National Instant Criminal Background Check
System (NICS) showed screenings last month fell ~22% yr/yr on an
unadjusted basis. The decline in checks mostly expected as civil
unrest and concerns of stricter gun control regulations under a
new government sparked demand for guns (https://bit.ly/3hzRl5o)
    ** NICS background checks from Federal Bureau of
Investigation do not directly correlate to sales, but they serve
as best barometer for firearm purchases
    
    

 (Reporting by Sinéad Carew and Lance Tupper
Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))
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