Smith & Wesson Brands (NASDAQ:SWBI) Announces Quarterly Earnings Results

Key Points

• Smith & Wesson Brands beat quarterly expectations: The company reported earnings of $0.06 per share versus analysts’ expected loss of $0.06, while revenue reached $129.37 million compared with estimates of $98.70 million.
• Shares fell 4.0% to $12.27 following the results, despite the earnings beat. The stock has traded between $8.01 and $17.56 over the past year.
• The company paid a quarterly dividend of $0.13 per share, equal to a 4.2% annualized yield, while analysts maintained an overall “Hold” rating with an average price target of $16.50.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) released its quarterly earnings results on Thursday. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.12, Zacks reports. The firm had revenue of $129.37 million during the quarter, compared to analyst estimates of $98.70 million. Smith & Wesson Brands had a net margin of 3.53% and a return on equity of 5.01%.

Smith & Wesson Brands Trading Down 4.0%

SWBI traded down $0.51 on Thursday, hitting $12.27. 1,171,048 shares of the company were exchanged, compared to its average volume of 603,648. The firm has a fifty day simple moving average of $14.53 and a two-hundred day simple moving average of $14.42. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.13 and a current ratio of 3.20. Smith & Wesson Brands has a 12 month low of $8.01 and a 12 month high of $17.56. The stock has a market capitalization of $550.19 million, a PE ratio of 30.68 and a beta of 0.86.

Smith & Wesson Brands Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st were issued a dividend of $0.13 per share. The ex-dividend date was Wednesday, July 1st. This represents a $0.52 annualized dividend and a yield of 4.2%. Smith & Wesson Brands's dividend payout ratio is currently 130.00%.

Analysts Set New Price Targets

Several research analysts recently issued reports on SWBI shares. Lake Street Capital upped their target price on shares of Smith & Wesson Brands from $14.00 to $16.50 and gave the stock a "buy" rating in a research report on Thursday, June 18th. Zacks Research raised Smith & Wesson Brands to a "hold" rating in a research note on Tuesday, June 23rd. Finally, Weiss Ratings cut Smith & Wesson Brands from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, Smith & Wesson Brands currently has an average rating of "Hold" and an average price target of $16.50.

Institutional Trading of Smith & Wesson Brands

A number of institutional investors have recently made changes to their positions in the stock. Millennium Management LLC bought a new position in shares of Smith & Wesson Brands in the third quarter worth approximately $7,558,000. Two Sigma Investments LP increased its position in shares of Smith & Wesson Brands by 166.1% in the third quarter. Two Sigma Investments LP now owns 753,964 shares of the company's stock valued at $7,411,000 after acquiring an additional 470,602 shares during the period. Charles Schwab Investment Management Inc. raised its stake in shares of Smith & Wesson Brands by 25.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,311,503 shares of the company's stock valued at $12,945,000 after acquiring an additional 265,370 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Smith & Wesson Brands by 41.4% during the first quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company's stock valued at $6,642,000 after acquiring an additional 208,739 shares during the last quarter. Finally, Trexquant Investment LP boosted its holdings in shares of Smith & Wesson Brands by 159.3% during the fourth quarter. Trexquant Investment LP now owns 318,026 shares of the company's stock worth $3,139,000 after purchasing an additional 195,390 shares during the period. Hedge funds and other institutional investors own 59.33% of the company's stock.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.

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