Smith & Wesson Brands (NASDAQ:SWBI) Stock Rating Upgraded by Zacks Research

Key Points

• Smith & Wesson Brands was upgraded from a "strong sell" to a "hold" rating by Zacks Research, indicating a more positive outlook.
• Analysts have mixed opinions, with one rating the stock as a "buy," while another has downgraded it to "sell," resulting in an average rating of "hold" and a price target of $12.00.
• Recently reported earnings revealed a miss on EPS estimates, with $0.20 reported versus the expected $0.23, and revenue that was 11.6% lower than last year.

Zacks Research upgraded shares of Smith & Wesson Brands (NASDAQ:SWBI - Free Report) from a strong sell rating to a hold rating in a research note issued to investors on Tuesday, August 26th,Zacks.com reports.

Several other research analysts have also recently weighed in on the stock. Lake Street Capital lowered their price target on shares of Smith & Wesson Brands from $12.50 to $11.00 and set a "buy" rating on the stock in a research report on Monday, June 23rd. Wall Street Zen cut shares of Smith & Wesson Brands from a "hold" rating to a "sell" rating in a research report on Saturday, August 16th. One equities 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, the stock presently has an average rating of "Hold" and an average price target of $12.00.

Smith & Wesson Brands Price Performance

SWBI traded down $0.08 on Tuesday, hitting $8.10. 353,368 shares of the company's stock were exchanged, compared to its average volume of 622,589. Smith & Wesson Brands has a fifty-two week low of $7.73 and a fifty-two week high of $14.76. The company has a current ratio of 4.16, a quick ratio of 1.31 and a debt-to-equity ratio of 0.30. The firm has a 50-day moving average price of $8.27 and a 200-day moving average price of $9.23. The stock has a market cap of $356.18 million, a price-to-earnings ratio of 29.98 and a beta of 0.95.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last announced its earnings results on Wednesday, June 18th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.23 by ($0.03). Smith & Wesson Brands had a return on equity of 3.71% and a net margin of 2.60%.The business had revenue of $140.76 million for the quarter, compared to analyst estimates of $152.41 million. During the same period last year, the firm earned $0.45 EPS. The company's revenue for the quarter was down 11.6% compared to the same quarter last year. As a group, equities analysts anticipate that Smith & Wesson Brands will post 0.47 earnings per share for the current year.

Smith & Wesson Brands Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, July 21st. Shareholders of record on Monday, July 7th were given a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 6.4%. The ex-dividend date of this dividend was Monday, July 7th. Smith & Wesson Brands's payout ratio is currently 192.59%.

Institutional Trading of Smith & Wesson Brands

Hedge funds have recently made changes to their positions in the business. Wells Fargo & Company MN grew its holdings in shares of Smith & Wesson Brands by 21.8% in the fourth quarter. Wells Fargo & Company MN now owns 43,535 shares of the company's stock valued at $440,000 after purchasing an additional 7,795 shares in the last quarter. Invesco Ltd. boosted its position in Smith & Wesson Brands by 9.0% in the 4th quarter. Invesco Ltd. now owns 131,776 shares of the company's stock valued at $1,332,000 after buying an additional 10,887 shares during the period. Raymond James Financial Inc. acquired a new position in shares of Smith & Wesson Brands in the fourth quarter worth $568,000. Barclays PLC increased its position in shares of Smith & Wesson Brands by 5.9% during the fourth quarter. Barclays PLC now owns 85,160 shares of the company's stock worth $861,000 after acquiring an additional 4,711 shares during the period. Finally, Dimensional Fund Advisors LP increased its position in shares of Smith & Wesson Brands by 3.5% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,063,973 shares of the company's stock worth $30,960,000 after acquiring an additional 104,128 shares during the period. Institutional investors and hedge funds own 59.33% of the company's stock.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm's brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech.