Sturm, Ruger & Company, Inc. (NYSE:RGR) Sets New 1-Year High After Earnings Beat

Key Points

• Shares hit a new 52-week high after quarterly results beat estimates: EPS was $0.44 versus $0.37 expected, while revenue of $147.63 million topped forecasts and rose 16.5% year over year.
• The company cut its quarterly dividend to $0.18 per share from $0.21, equivalent to an annualized yield of about 1.4%.
• Analysts’ consensus rating remained Hold, with a consensus price target of $46—below the stock’s trading price near $50.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report)'s stock price reached a new 52-week high during trading on Thursday following a stronger than expected earnings report. The stock traded as high as $51.00 and last traded at $50.1140, with a volume of 50,823 shares trading hands. The stock had previously closed at $49.91.

The company reported $0.44 EPS for the quarter, topping the consensus estimate of $0.37 by $0.07. Sturm, Ruger & Company, Inc. had a net margin of 2.11% and a return on equity of 6.58%. The business had revenue of $147.63 million for the quarter, compared to the consensus estimate of $131.03 million. During the same period last year, the company earned $0.10 EPS. The firm's revenue was up 16.5% compared to the same quarter last year.

Sturm, Ruger & Company, Inc. Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 4th. Stockholders of record on Friday, November 20th will be paid a dividend of $0.18 per share. The ex-dividend date of this dividend is Friday, November 20th. This is a decrease from Sturm, Ruger & Company, Inc.'s previous quarterly dividend of $0.21. This represents a $0.72 annualized dividend and a dividend yield of 1.4%. Sturm, Ruger & Company, Inc.'s payout ratio is 112.00%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Wall Street Zen raised shares of Sturm, Ruger & Company, Inc. from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. Zacks Research raised shares of Sturm, Ruger & Company, Inc. from a "strong sell" rating to a "hold" rating in a research note on Monday, October 5th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Sturm, Ruger & Company, Inc. in a research report on Friday, October 30th. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $46.00.

Insiders Place Their Bets

In other Sturm, Ruger & Company, Inc. news, VP Michael Wilson sold 628 shares of the business's stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $45.47, for a total value of $28,555.16. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,828 shares of company stock valued at $77,725 in the last ninety days. Insiders own 4.60% of the company's stock.

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

A number of institutional investors and hedge funds have recently modified their holdings of RGR. Wellington Management Group LLP grew its stake in shares of Sturm, Ruger & Company, Inc. by 15.0% in the 2nd quarter. Wellington Management Group LLP now owns 548,286 shares of the company's stock valued at $20,753,000 after buying an additional 71,423 shares during the period. BlackRock Inc. acquired a new position in Sturm, Ruger & Company, Inc. during the 2nd quarter worth approximately $49,541,000. Bank of New York Mellon Corp acquired a new position in shares of Sturm, Ruger & Company, Inc. during the second quarter worth approximately $4,773,000. Landscape Capital Management L.L.C. acquired a new position in shares of Sturm, Ruger & Company, Inc. during the second quarter worth approximately $1,058,000. Finally, JRM Investment Counsel LLC bought a new position in shares of Sturm, Ruger & Company, Inc. in the 1st quarter worth $15,916,000. 64.00% of the stock is currently owned by institutional investors.

Sturm, Ruger & Company, Inc. Stock Performance

The business has a fifty day moving average of $42.27 and a 200-day moving average of $39.81. The company has a market capitalization of $796.92 million, a P/E ratio of 66.49 and a beta of 0.11.

Sturm, Ruger & Company, Inc. Company Profile

Sturm, Ruger & Company, Inc designs, manufactures, and sells firearms for the commercial sporting market. Its product portfolio includes pistols, revolvers, rifles, and related accessories marketed under the Ruger brand. The company serves customers through independent distributors, retailers, and other firearms dealers.

Founded in 1949 by William B. Ruger and Alexander M. Sturm, the company is one of the largest firearms manufacturers in the United States. Its products are manufactured in the U.S.

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