Smith & Wesson Brands (NASDAQ:SWBI) Hits New 1-Year High on Earnings Beat

Key Points

• Smith & Wesson shares jumped to a new 52-week high of $12.66 after an earnings beat — EPS $0.08 vs. $0.05 expected and revenue $135.71M vs. $125.59M, a 17.1% year-over-year increase.
• Despite the rally, analysts' consensus is a Hold with an average price target of $11.00, which is below the current share price and follows at least one recent downgrade from Buy to Hold.
• Institutions own 59.33% of the stock; the company has a market cap of $598.8M and a PE ratio of 70.85, indicating a relatively high valuation.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report) shares reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The company traded as high as $12.66 and last traded at $12.66, with a volume of 79580 shares trading hands. The stock had previously closed at $11.79.

The company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.05 by $0.03. The business had revenue of $135.71 million during the quarter, compared to analysts' expectations of $125.59 million. Smith & Wesson Brands had a return on equity of 2.34% and a net margin of 1.89%.The firm's revenue was up 17.1% on a year-over-year basis. During the same period in the previous year, the business earned $0.02 earnings per share.

Wall Street Analyst Weigh In

SWBI has been the topic of a number of research analyst reports. Wall Street Zen downgraded Smith & Wesson Brands from a "buy" rating to a "hold" rating in a report on Saturday, February 28th. Weiss Ratings reiterated a "hold (c)" rating on shares of Smith & Wesson Brands in a research report on Monday, December 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 has an average rating of "Hold" and an average price target of $11.00.

Institutional Trading of Smith & Wesson Brands

A number of hedge funds and other institutional investors have recently modified their holdings of SWBI. Virtu Financial LLC purchased a new position in Smith & Wesson Brands in the fourth quarter worth about $153,000. Invesco Ltd. raised its holdings in Smith & Wesson Brands by 2.2% in the 4th quarter. Invesco Ltd. now owns 137,004 shares of the company's stock worth $1,352,000 after acquiring an additional 2,983 shares during the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in Smith & Wesson Brands by 49.3% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 29,793 shares of the company's stock worth $294,000 after acquiring an additional 9,835 shares during the last quarter. Oxford Asset Management LLP bought a new position in Smith & Wesson Brands in the 4th quarter valued at approximately $140,000. Finally, Engineers Gate Manager LP bought a new stake in shares of Smith & Wesson Brands in the 4th quarter worth $439,000. 59.33% of the stock is owned by hedge funds and other institutional investors.

Smith & Wesson Brands Stock Up 14.2%

The stock has a market cap of $598.84 million, a PE ratio of 70.85 and a beta of 1.04. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.98 and a quick ratio of 1.58. The company has a 50 day moving average price of $11.13 and a two-hundred day moving average price of $9.97.

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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