Sturm, Ruger & Company, Inc. (NYSE:RGR) Stock Short Interest Climbs 80.8%

Key Points

• Short interest surged 80.8% to 976,559 shares as of September 30, representing 6.4% of outstanding shares and 3.4 days to cover.
• Analyst sentiment remains mixed, with one Buy and two Hold ratings; the consensus rating is Hold with a $46 average price target. RGR recently traded at $43.59.
• The company beat quarterly earnings expectations, reporting $0.52 EPS and $158.06 million in revenue, while raising its quarterly dividend to $0.21 per share, or an annualized $0.84.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) saw a significant increase in short interest in the month of September. As of September 30th, there was short interest totaling 976,559 shares, an increase of 80.8% from the September 15th total of 540,201 shares. Based on an average daily trading volume, of 289,559 shares, the days-to-cover ratio is currently 3.4 days. Currently, 6.4% of the company's shares are sold short.

Analyst Upgrades and Downgrades

Several research firms have commented on RGR. Zacks Research raised Sturm, Ruger & Company, Inc. from a "strong sell" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings upgraded Sturm, Ruger & Company, Inc. from a "sell (d+)" rating to a "hold (c)" rating in a research note on Monday, August 3rd. Finally, Wall Street Zen raised Sturm, Ruger & Company, Inc. from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $46.00.

Sturm, Ruger & Company, Inc. Price Performance

NYSE RGR traded up $0.59 on Thursday, reaching $43.59. The company had a trading volume of 59,902 shares, compared to its average volume of 175,508. Sturm, Ruger & Company, Inc. has a 1 year low of $28.33 and a 1 year high of $47.50. The firm has a 50-day moving average of $39.78 and a 200-day moving average of $39.68. The firm has a market capitalization of $696.57 million, a PE ratio of 58.14 and a beta of 0.15.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.52 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.42 by $0.10. Sturm, Ruger & Company, Inc. had a net margin of 2.11% and a return on equity of 6.58%. The company had revenue of $158.06 million for the quarter, compared to analyst estimates of $128.54 million. During the same quarter last year, the firm posted $0.41 earnings per share. The business's quarterly revenue was up 19.3% on a year-over-year basis. As a group, sell-side analysts expect that Sturm, Ruger & Company, Inc. will post 1.49 EPS for the current fiscal year.

Sturm, Ruger & Company, Inc. Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were issued a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Friday, August 14th. This is a positive change from Sturm, Ruger & Company, Inc.'s previous quarterly dividend of $0.11. Sturm, Ruger & Company, Inc.'s dividend payout ratio (DPR) is 112.00%.

Insider Activity

In other news, VP Michael Wilson sold 600 shares of the firm's stock in a transaction on Thursday, September 24th. The shares were sold at an average price of $41.95, for a total value of $25,170.00. Following the transaction, the vice president owned 628 shares of the company's stock, valued at approximately $26,344.60. This trade represents a 48.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.60% of the stock is owned by insiders.

Hedge Funds Weigh In On Sturm, Ruger & Company, Inc.

A number of institutional investors have recently added to or reduced their stakes in the company. Fortitude Family Office LLC acquired a new stake in shares of Sturm, Ruger & Company, Inc. during the third quarter worth approximately $117,000. Sax Wealth Advisors LLC bought a new stake in shares of Sturm, Ruger & Company, Inc. in the third quarter worth $273,000. GAMMA Investing LLC raised its holdings in Sturm, Ruger & Company, Inc. by 32.5% in the third quarter. GAMMA Investing LLC now owns 1,401 shares of the company's stock valued at $60,000 after acquiring an additional 344 shares in the last quarter. Farther Finance Advisors LLC raised its holdings in Sturm, Ruger & Company, Inc. by 714.8% in the third quarter. Farther Finance Advisors LLC now owns 4,066 shares of the company's stock valued at $173,000 after acquiring an additional 3,567 shares in the last quarter. Finally, Engineers Gate Manager LP raised its holdings in Sturm, Ruger & Company, Inc. by 108.0% in the second quarter. Engineers Gate Manager LP now owns 22,576 shares of the company's stock valued at $855,000 after acquiring an additional 11,723 shares in the last quarter. Institutional investors and hedge funds own 64.00% of the company's stock.

Sturm, Ruger & Company, Inc. Company Profile

Sturm, Ruger & Company, Inc designs, manufactures and sells firearms under the Ruger brand. Its product portfolio includes rifles, pistols, revolvers and shotguns, serving civilian sporting, hunting, personal protection and law enforcement markets.

The company also produces and markets firearms under the Marlin brand. Its offerings include traditional and modern sporting rifles, rimfire and centerfire firearms, and related accessories. Sturm, Ruger primarily serves the United States through a network of independent distributors and retailers, with products also sold in select international markets.

Founded in 1949 by William B.

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