Smith & Wesson Brands (NASDAQ:SWBI) Shares Cross Above 50 Day Moving Average - What's Next?

Key Points

• Smith & Wesson Brands shares rose above their 50-day moving average, reaching $14.07 before last trading at $13.84 on volume of roughly 594,635 shares.
• Analyst sentiment remains cautious: Weiss Ratings downgraded the stock to “hold,” while the broader consensus is “Hold” with a $16.50 price target.
• The company reported better-than-expected quarterly results, including $0.06 in EPS and $112.59 million in revenue, up 32.3% year over year. It also pays a $0.52 annualized dividend, yielding about 3.8%.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report)'s share price crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $13.82 and traded as high as $14.07. Smith & Wesson Brands shares last traded at $13.84, with a volume of 594,635 shares trading hands.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of Smith & Wesson Brands from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, July 29th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, Smith & Wesson Brands presently has an average rating of "Hold" and a consensus target price of $16.50.

Smith & Wesson Brands Trading Up 0.9%

The company's 50 day simple moving average is $13.82 and its 200-day simple moving average is $13.87. The firm has a market cap of $620.59 million, a P/E ratio of 25.63 and a beta of 0.80. The company has a quick ratio of 0.98, a current ratio of 3.62 and a debt-to-equity ratio of 0.19.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last released its earnings results on Thursday, September 3rd. The company reported $0.06 EPS for the quarter, beating analysts' consensus estimates of ($0.06) by $0.12. Smith & Wesson Brands had a return on equity of 6.60% and a net margin of 4.44%. The firm had revenue of $112.59 million for the quarter, compared to analysts' expectations of $98.70 million. During the same quarter in the prior year, the firm posted ($0.08) earnings per share. The company's quarterly revenue was up 32.3% on a year-over-year basis. As a group, research analysts predict that Smith & Wesson Brands, Inc. will post 0.63 earnings per share for the current fiscal year.

Smith & Wesson Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 17th were paid a $0.13 dividend. The ex-dividend date was Thursday, September 17th. This represents a $0.52 dividend on an annualized basis and a yield of 3.8%. Smith & Wesson Brands's dividend payout ratio (DPR) is presently 96.30%.

Institutional Trading of Smith & Wesson Brands

Several institutional investors and hedge funds have recently made changes to their positions in SWBI. Sterling Capital Management LLC boosted its stake in shares of Smith & Wesson Brands by 15.0% during the third quarter. Sterling Capital Management LLC now owns 21,498 shares of the company's stock valued at $302,000 after purchasing an additional 2,806 shares during the period. Integrated Wealth Concepts LLC purchased a new position in Smith & Wesson Brands in the 2nd quarter worth about $84,000. Squarepoint Ops LLC increased its stake in Smith & Wesson Brands by 43.4% in the 2nd quarter. Squarepoint Ops LLC now owns 166,534 shares of the company's stock worth $2,505,000 after buying an additional 50,429 shares during the period. Corient Private Wealth LP lifted its holdings in Smith & Wesson Brands by 208.8% during the 2nd quarter. Corient Private Wealth LP now owns 51,116 shares of the company's stock valued at $769,000 after buying an additional 34,562 shares in the last quarter. Finally, Empowered Funds LLC bought a new stake in Smith & Wesson Brands during the 2nd quarter valued at about $195,000. 59.33% of the stock is currently owned by institutional investors.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is an American firearms manufacturer that designs, manufactures, and sells handguns, long guns, and related firearms products. Its portfolio includes pistols, revolvers, modern sporting rifles, and bolt-action rifles marketed under the Smith & Wesson and M&P brands, along with specialized products associated with its Performance Center.

The company serves a range of customers, including consumers, law enforcement agencies, military organizations, and security professionals.

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