Bank of New York Mellon Corp Buys New Shares in Smith & Wesson Brands, Inc. $SWBI

Key Points

• Bank of New York Mellon purchased 427,046 Smith & Wesson Brands shares in the second quarter, valued at approximately $6.4 million and representing a 0.95% stake. Institutional investors collectively own 59.33% of the company.
• Smith & Wesson reported quarterly revenue of $129.37 million, up 32.3% year over year, and EPS of $0.06, beating analyst expectations. Lake Street Capital raised its price target to $16.50 and issued a buy rating, although the overall analyst consensus remains “Hold.”
• The company declared a quarterly dividend of $0.13 per share, equivalent to $0.52 annually and a roughly 4.0% yield; however, its 130% payout ratio may raise questions about dividend sustainability.

Bank of New York Mellon Corp purchased a new stake in shares of Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 427,046 shares of the company's stock, valued at approximately $6,423,000. Bank of New York Mellon Corp owned 0.95% of Smith & Wesson Brands as of its most recent SEC filing.

Other large investors have also recently modified their holdings of the company. State of Wyoming purchased a new position in Smith & Wesson Brands in the 2nd quarter worth approximately $342,000. GSA Capital Partners LLP purchased a new stake in shares of Smith & Wesson Brands during the second quarter valued at approximately $205,000. Pacer Advisors Inc. bought a new position in shares of Smith & Wesson Brands in the first quarter worth approximately $2,205,000. Empowered Funds LLC bought a new position in shares of Smith & Wesson Brands in the first quarter worth approximately $250,000. Finally, Western Wealth Management LLC purchased a new position in shares of Smith & Wesson Brands in the first quarter worth $34,000. Hedge funds and other institutional investors own 59.33% of the company's stock.

Analyst Ratings Changes

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

Smith & Wesson Brands Stock Up 5.1%

SWBI opened at $12.89 on Friday. The company has a quick ratio of 1.13, a current ratio of 3.20 and a debt-to-equity ratio of 0.14. The firm has a 50 day moving average price of $14.42 and a 200-day moving average price of $14.41. Smith & Wesson Brands, Inc. has a twelve month low of $8.05 and a twelve month high of $17.56. The stock has a market capitalization of $577.99 million, a price-to-earnings ratio of 23.87 and a beta of 0.86.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last issued its earnings results on Thursday, September 3rd. The company reported $0.06 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.06) by $0.12. Smith & Wesson Brands had a net margin of 4.44% and a return on equity of 6.63%. The company had revenue of $129.37 million for the quarter, compared to analysts' expectations of $98.70 million. During the same quarter last year, the company posted ($0.08) earnings per share. The firm's quarterly revenue was up 32.3% on a year-over-year basis. Equities research analysts forecast that Smith & Wesson Brands, Inc. will post 0.55 earnings per share for the current year.

Smith & Wesson Brands Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 17th will be given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 4.0%. The ex-dividend date is Thursday, September 17th. Smith & Wesson Brands's dividend payout ratio is 130.00%.

Smith & Wesson Brands News Roundup

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Strong Q1 results: Fiscal Q1 net sales increased 32.3% year over year to $112.6 million, gross margin was 28.7%, and earnings were $0.06 per share versus a consensus loss estimate of $0.06. The performance was attributed to solid handgun and long-gun demand, new product launches, and a favorable product mix. Smith & Wesson Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Encouraging outlook: Management projected fiscal 2027 revenue of approximately $550.0 million to $560.5 million, broadly in line with analyst expectations, while second-quarter revenue guidance of about $137.1 million exceeded the $132.2 million consensus estimate. The company also indicated that second-quarter sales could be roughly 10% above the prior-year period and forecast full-year revenue growth of 5% to 7%. Smith & Wesson Projects Fiscal 2027 Revenue Growth
• Positive Sentiment: Analyst upgrade and shareholder return: An analyst upgraded SWBI from “hold” to “buy,” citing the earnings beat, improving background-check trends, product innovation, and an attractive valuation. The company also declared a quarterly dividend of $0.13 per share, representing an indicated yield of roughly 4.2% based on the supplied market data. Smith & Wesson Rating Upgrade
• Negative Sentiment: Profitability and balance-sheet concerns remain: Coverage noted that rising spending is weighing on the balance sheet. Despite the sales rebound, SWBI’s reported net margin was only 3.53% and return on equity was 5.01%, suggesting investors will continue monitoring cost control and cash generation. Smith & Wesson Q1 Earnings and Rising Spending

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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