Sturm, Ruger & Company, Inc. (NYSE:RGR) Announces Earnings Results, Beats Expectations By $0.10 EPS

Key Points

• Sturm, Ruger beat quarterly expectations: EPS was $0.52 versus the $0.42 consensus estimate, while revenue reached $158.06 million compared with expectations of $128.54 million.
• The company increased its quarterly dividend to $0.11 per share from $0.08, resulting in an annualized dividend of $0.44 and a 1.2% yield.
• Shares traded near $37.87, while analysts maintained a consensus “Hold” rating and a $46 price target; insiders purchased 7,500 shares worth approximately $288,615 over the prior three months.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) posted its earnings results on Wednesday. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.42 by $0.10, FiscalAI reports. Sturm, Ruger & Company, Inc. had a negative net margin of 2.18% and a positive return on equity of 5.96%. The firm had revenue of $158.06 million for the quarter, compared to the consensus estimate of $128.54 million.

Sturm, Ruger & Company, Inc. Price Performance

Shares of NYSE RGR traded down $0.47 during mid-day trading on Wednesday, hitting $37.87. The company had a trading volume of 123,936 shares, compared to its average volume of 155,870. Sturm, Ruger & Company, Inc. has a 12 month low of $28.33 and a 12 month high of $48.21. The firm has a market cap of $603.77 million, a P/E ratio of -51.87 and a beta of 0.17. The business's 50-day simple moving average is $38.77 and its 200-day simple moving average is $39.07.

Sturm, Ruger & Company, Inc. Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Thursday, May 14th were given a dividend of $0.11 per share. This represents a $0.44 dividend on an annualized basis and a yield of 1.2%. This is an increase from Sturm, Ruger & Company, Inc.'s previous quarterly dividend of $0.08. The ex-dividend date of this dividend was Thursday, May 14th. Sturm, Ruger & Company, Inc.'s payout ratio is presently -60.27%.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Zacks Research upgraded Sturm, Ruger & Company, Inc. from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Lake Street Capital reissued a "buy" rating and issued a $46.00 price target on shares of Sturm, Ruger & Company, Inc. in a research report on Thursday, May 7th. Wall Street Zen upgraded shares of Sturm, Ruger & Company, Inc. from a "hold" rating to a "buy" rating in a research note on Sunday, July 12th. Finally, Weiss Ratings reiterated a "sell (d+)" rating on shares of Sturm, Ruger & Company, Inc. in a research note on Wednesday, June 24th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $46.00.

Insider Activity at Sturm, Ruger & Company, Inc.

In other news, Director Phillip Widman acquired 5,000 shares of the firm's stock in a transaction dated Tuesday, May 12th. The shares were bought at an average price of $38.00 per share, with a total value of $190,000.00. Following the acquisition, the director owned 45,208 shares of the company's stock, valued at $1,717,904. This trade represents a 12.44% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Todd William Seyfert purchased 1,500 shares of the stock in a transaction on Wednesday, May 20th. The stock was acquired at an average cost of $39.15 per share, for a total transaction of $58,725.00. Following the acquisition, the chief executive officer directly owned 1,500 shares in the company, valued at approximately $58,725. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought 7,500 shares of company stock worth $288,615 over the last three months. Company insiders own 4.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of RGR. The Manufacturers Life Insurance Company grew its holdings in Sturm, Ruger & Company, Inc. by 5.2% during the second quarter. The Manufacturers Life Insurance Company now owns 6,002 shares of the company's stock valued at $215,000 after purchasing an additional 299 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Sturm, Ruger & Company, Inc. by 4.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,777 shares of the company's stock worth $384,000 after purchasing an additional 390 shares in the last quarter. Nebula Research & Development LLC grew its holdings in shares of Sturm, Ruger & Company, Inc. by 2.6% in the 2nd quarter. Nebula Research & Development LLC now owns 15,405 shares of the company's stock valued at $553,000 after buying an additional 391 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in shares of Sturm, Ruger & Company, Inc. by 4.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 10,625 shares of the company's stock valued at $347,000 after buying an additional 432 shares during the period. Finally, Brevan Howard Capital Management LP increased its position in shares of Sturm, Ruger & Company, Inc. by 8.4% in the 2nd quarter. Brevan Howard Capital Management LP now owns 8,028 shares of the company's stock valued at $288,000 after buying an additional 620 shares in the last quarter. 64.00% of the stock is currently owned by institutional investors and hedge funds.

Sturm, Ruger & Company, Inc. Company Profile

Sturm, Ruger & Company, Inc, founded in 1949 by William B. Ruger and Alexander McCormick Sturm, is a leading American designer and manufacturer of firearms. Headquartered in Newport, New Hampshire, the company has established a reputation for precision engineering and durable products. Its manufacturing footprint includes facilities in Newport and Mayodan, North Carolina, where it maintains a vertically integrated production model spanning metallurgy, machining, and assembly.

The company's product portfolio encompasses a broad range of small arms, including centerfire and rimfire rifles, shotguns, semi-automatic pistols, revolvers, and accessories.

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