Smith & Wesson Brands (NASDAQ:SWBI) Stock Falls 6.6% - What's Next?

Key Points

• Smith & Wesson Brands shares fell 6.6% to about $13.41, with trading volume roughly 57% below the average session volume.
• Analyst sentiment remains cautious: Weiss Ratings downgraded the stock to “hold,” while the broader consensus is also “Hold,” with a $16.50 price target.
• The company reported stronger-than-expected quarterly results, including $0.06 EPS and $112.59 million in revenue, up 32.3% year over year; it also maintains a quarterly dividend of $0.13 per share, yielding about 3.8%.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report) fell 6.6% during trading on Friday. The stock traded as low as $13.42 and last traded at $13.4080. Approximately 255,705 shares were traded during mid-day trading, a decline of 57% from the average session volume of 597,383 shares. The stock had previously closed at $14.35.

Analyst Upgrades and Downgrades

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

Smith & Wesson Brands Trading Down 4.9%

The company has a quick ratio of 0.98, a current ratio of 3.62 and a debt-to-equity ratio of 0.19. The firm's 50-day simple moving average is $13.80 and its 200 day simple moving average is $14.57. The stock has a market capitalization of $611.84 million, a P/E ratio of 25.27 and a beta of 0.80.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $0.06 earnings per share for the quarter, beating 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 6.60%. The company had revenue of $112.59 million during the quarter, compared to analyst estimates of $98.70 million. During the same quarter last year, the firm posted ($0.08) EPS. The business's revenue for the quarter was up 32.3% on a year-over-year basis. Equities research analysts anticipate that Smith & Wesson Brands, Inc. will post 0.63 EPS for the current fiscal year.

Smith & Wesson Brands Dividend Announcement

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. First Trust Advisors LP raised its position in Smith & Wesson Brands by 0.9% in the first quarter. First Trust Advisors LP now owns 141,782 shares of the company's stock worth $2,032,000 after purchasing an additional 1,299 shares in the last quarter. Allworth Financial LP bought a new position in shares of Smith & Wesson Brands in the second quarter valued at about $27,000. Western Wealth Management LLC acquired a new stake in Smith & Wesson Brands in the 1st quarter valued at about $34,000. Sterling Capital Management LLC lifted its position 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 worth $302,000 after purchasing an additional 2,806 shares in the last quarter. Finally, Bank of New York Mellon Corp lifted its position in shares of Smith & Wesson Brands by 0.9% during the first quarter. Bank of New York Mellon Corp now owns 417,808 shares of the company's stock worth $5,987,000 after purchasing an additional 3,884 shares in the last quarter. Institutional investors own 59.33% of the company's stock.

Smith & Wesson Brands Company Profile

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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