Smith & Wesson Brands (NASDAQ:SWBI) Price Target Raised to $14.00 at Lake Street Capital

Key Points

• Lake Street Capital raised its price target on Smith & Wesson from $11.00 to $14.00 and maintained a "buy" rating, a target implying roughly 1.08% upside from the recent share price.
• Q3 results beat expectations—EPS $0.08 vs. $0.05 and revenue $135.7M (up 17.1% YoY)—and management raised Q4 revenue guidance to $154.9M–$157.7M, fueling a sharp rally and heavy trading that pushed the stock to $13.85.
• Investors should weigh the positive momentum against valuation and profitability risks: the stock trades at about a 72.9x P/E with a trailing net margin near 1.9% and a consensus rating of "Hold," leaving it vulnerable if growth or margins weaken.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) had its price target hoisted by equities researchers at Lake Street Capital from $11.00 to $14.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. Lake Street Capital's target price points to a potential upside of 1.08% from the stock's current price.

A number of other equities analysts also recently commented on the company. Wall Street Zen downgraded Smith & Wesson Brands from a "buy" rating to a "hold" rating in a research note on Saturday, February 28th. Weiss Ratings restated a "hold (c)" rating on shares of Smith & Wesson Brands in a research report on Monday, December 29th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $14.00.

Smith & Wesson Brands Stock Performance

SWBI stock traded up $2.06 during trading on Friday, hitting $13.85. 3,004,156 shares of the company's stock traded hands, compared to its average volume of 529,679. The stock has a market capitalization of $616.19 million, a price-to-earnings ratio of 72.90 and a beta of 1.04. Smith & Wesson Brands has a 52 week low of $7.73 and a 52 week high of $13.96. The stock has a fifty day moving average price of $11.13 and a two-hundred day moving average price of $9.97. The company has a quick ratio of 1.58, a current ratio of 4.98 and a debt-to-equity ratio of 0.34.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The company reported $0.08 EPS for the quarter, beating the consensus estimate of $0.05 by $0.03. Smith & Wesson Brands had a net margin of 1.89% and a return on equity of 2.34%. The business had revenue of $135.71 million during the quarter, compared to analyst estimates of $125.59 million. During the same period in the previous year, the business posted $0.02 EPS. The company's quarterly revenue was up 17.1% on a year-over-year basis. As a group, equities analysts anticipate that Smith & Wesson Brands will post 0.47 EPS for the current fiscal year.

Institutional Investors Weigh In On Smith & Wesson Brands

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in SWBI. Charles Schwab Investment Management Inc. boosted its stake in Smith & Wesson Brands by 25.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,311,503 shares of the company's stock worth $12,945,000 after purchasing an additional 265,370 shares during the period. Geode Capital Management LLC lifted its position in Smith & Wesson Brands by 0.4% during the second quarter. Geode Capital Management LLC now owns 1,075,354 shares of the company's stock worth $9,336,000 after acquiring an additional 3,882 shares during the last quarter. Millennium Management LLC bought a new stake in Smith & Wesson Brands in the 3rd quarter valued at $7,558,000. Two Sigma Investments LP grew its stake in shares of Smith & Wesson Brands by 166.1% in the third quarter. Two Sigma Investments LP now owns 753,964 shares of the company's stock valued at $7,411,000 after acquiring an additional 470,602 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of Smith & Wesson Brands by 41.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company's stock worth $6,642,000 after purchasing an additional 208,739 shares in the last quarter. Hedge funds and other institutional investors own 59.33% of the company's stock.

Key Headlines Impacting Smith & Wesson Brands

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Q3 results beat consensus: Smith & Wesson reported GAAP EPS of $0.08 (vs. ~$0.05 consensus) and revenue of $135.7M, topping estimates and representing 17.1% year-over-year sales growth — a clear driver for the rally. Q3 Press Release
• Positive Sentiment: Company raised fiscal Q4 revenue expectations: Management provided revenue guidance around $154.9M–$157.7M for the fourth quarter, well above the prior analyst consensus (~$142.2M), suggesting stronger near-term top-line momentum. MSN Coverage
• Positive Sentiment: Market reaction and volume confirm investor enthusiasm: Multiple outlets note shares moved sharply higher on the beat + guidance combo and volume spiked, indicating short-term buying interest. MSN Coverage
• Neutral Sentiment: Earnings call and transcripts available for detail on drivers: Management commentary in the Q3 call (transcripts posted) will be key to parse inventory, channel demand, and margin trajectory. Investors should review the call for durability of demand and any one-time items. Seeking Alpha Transcript Yahoo Transcript
• Neutral Sentiment: Analyst write-ups and expectations are being refreshed: Coverage (e.g., Benzinga) is re-running estimates and models in light of the beat/guidance — expect revisions to next-quarter and FY estimates. Benzinga Analysis
• Negative Sentiment: Profitability and valuation remain considerations: Despite revenue growth, trailing net margin is low (~1.9%) and ROE modest; the stock trades at a high P/E (~72x on reported figures), leaving it exposed if growth or margins slip. MarketBeat Profile

Smith & Wesson Brands Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.