Smith & Wesson Brands (NASDAQ:SWBI) Sets New 12-Month High - Here's Why

Key Points

• New 52-week high: Smith & Wesson Brands shares reached a 52-week high of $15.79 on Monday (last trade $15.57) with roughly 60,864 shares changing hands.
• Earnings beat and growth: The company reported Q earnings of $0.08 EPS versus $0.05 expected and revenue rose 17.1% to $135.71 million, while the stock trades at a P/E of 65.38 and analysts project ~0.27 EPS for the current fiscal year.
• Dividend and mixed outlook: Smith & Wesson pays a $0.13 quarterly dividend ($0.52 annualized, 3.5% yield) but with a 226% payout ratio, and analysts maintain an average rating of Hold with a $14.00 average price target.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report)'s share price reached a new 52-week high during trading on Monday . The stock traded as high as $15.79 and last traded at $15.5740, with a volume of 60864 shares traded. The stock had previously closed at $15.57.

Analyst Ratings Changes

Several equities research analysts recently commented on SWBI shares. Lake Street Capital boosted their price objective on shares of Smith & Wesson Brands from $11.00 to $14.00 and gave the stock a "buy" rating in a research report on Friday, March 6th. Weiss Ratings reissued a "hold (c)" rating on shares of Smith & Wesson Brands in a research note on Friday, March 27th. Finally, Wall Street Zen raised shares of Smith & Wesson Brands from a "hold" rating to a "strong-buy" rating in a research note on Sunday, March 8th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $14.00.

Smith & Wesson Brands Stock Performance

The stock's 50 day moving average price is $14.07 and its 200 day moving average price is $11.54. The company has a current ratio of 4.50, a quick ratio of 1.48 and a debt-to-equity ratio of 0.29. The company has a market cap of $669.00 million, a price-to-earnings ratio of 65.38 and a beta of 0.91.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last posted its quarterly earnings data on Thursday, March 5th. The company reported $0.08 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.03. Smith & Wesson Brands had a net margin of 2.24% and a return on equity of 3.07%. The company had revenue of $135.71 million during the quarter, compared to the consensus estimate of $125.59 million. During the same quarter in the prior year, the company posted $0.02 EPS. The company's quarterly revenue was up 17.1% compared to the same quarter last year. On average, analysts expect that Smith & Wesson Brands, Inc. will post 0.27 EPS for the current fiscal year.

Smith & Wesson Brands Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, March 19th were paid a dividend of $0.13 per share. The ex-dividend date of this dividend was Thursday, March 19th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 3.5%. Smith & Wesson Brands's dividend payout ratio is currently 226.09%.

Institutional Trading of Smith & Wesson Brands

A number of institutional investors have recently modified their holdings of SWBI. Millennium Management LLC purchased a new stake in shares of Smith & Wesson Brands during the 3rd quarter worth about $7,558,000. Two Sigma Investments LP grew its holdings in shares of Smith & Wesson Brands by 166.1% during the 3rd quarter. Two Sigma Investments LP now owns 753,964 shares of the company's stock worth $7,411,000 after purchasing an additional 470,602 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in shares of Smith & Wesson Brands by 25.4% during 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. Goldman Sachs Group Inc. grew its holdings 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 during the period. Finally, Trexquant Investment LP grew its holdings in shares of Smith & Wesson Brands by 159.3% during the 4th quarter. Trexquant Investment LP now owns 318,026 shares of the company's stock worth $3,139,000 after purchasing an additional 195,390 shares during the period. Hedge funds and other institutional investors own 59.33% of the company's stock.

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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