Smith & Wesson Brands (NASDAQ:SWBI) Stock Price Down 4.8% - Time to Sell?

Key Points

• SWBI shares fell 4.8% to about $12.17 in mid-day trading, well below their 50-day and 200-day moving averages of roughly $14.53 and $14.42.
• Analyst sentiment remains cautious: one analyst rates the stock Buy and two rate it Hold, resulting in an overall Hold rating and an average price target of $16.50.
• Despite the share-price decline, Smith & Wesson reported better-than-expected quarterly results, with EPS of $0.36 versus $0.23 expected and revenue up 26.7% year over year. The company also pays a quarterly dividend of $0.13, although its 4.3% yield is paired with a high 130% payout ratio.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report) shares fell 4.8% during mid-day trading on Thursday . The stock traded as low as $12.24 and last traded at $12.1650. Approximately 167,543 shares traded hands during mid-day trading, a decline of 72% from the average daily volume of 597,406 shares. The stock had previously closed at $12.78.

Wall Street Analyst Weigh In

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

Smith & Wesson Brands Stock Performance

The company has a market capitalization of $548.17 million, a price-to-earnings ratio of 30.56 and a beta of 0.86. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.13 and a current ratio of 3.20. The firm has a 50-day simple moving average of $14.53 and a two-hundred day simple moving average of $14.42.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last issued its quarterly earnings results on Wednesday, June 17th. The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.13. The business had revenue of $178.39 million for the quarter, compared to analysts' expectations of $155.27 million. Smith & Wesson Brands had a net margin of 3.53% and a return on equity of 5.01%. The business's quarterly revenue was up 26.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.20 earnings per share. On average, sell-side analysts anticipate that Smith & Wesson Brands, Inc. will post 0.55 EPS for the current fiscal year.

Smith & Wesson Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were paid a $0.13 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $0.52 annualized dividend and a dividend yield of 4.3%. Smith & Wesson Brands's payout ratio is 130.00%.

Institutional Trading of Smith & Wesson Brands

Several hedge funds have recently modified their holdings of SWBI. Allworth Financial LP acquired a new stake in Smith & Wesson Brands in the second quarter valued at approximately $27,000. Western Wealth Management LLC acquired a new position in Smith & Wesson Brands during the 1st quarter worth approximately $34,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Smith & Wesson Brands in the 4th quarter valued at approximately $30,000. Public Employees Retirement System of Ohio purchased a new stake in shares of Smith & Wesson Brands in the 2nd quarter valued at approximately $59,000. Finally, Legal & General Group Plc acquired a new stake in shares of Smith & Wesson Brands in the 2nd quarter valued at $65,000. 59.33% of the stock is currently owned by institutional investors and hedge funds.

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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