Sturm, Ruger & Company, Inc. (NYSE:RGR) Hits New 12-Month High - Should You Buy?

Key Points

• Sturm, Ruger & Company, Inc. shares reached a new 12-month high at $45.28, with a recent trading price of $44.39, marking a notable increase from the previous close of $43.37.
• Despite the stock's recent performance, Wall Street Zen downgraded the company from a "buy" rating to a "hold," indicating a shift in analyst sentiment.
• The company reported earnings of $0.41 per share, exceeding expectations, but also revealed a high dividend payout ratio of 206.45%, raising concerns about future sustainability.

Shares of Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) reached a new 52-week high on Monday . The company traded as high as $45.28 and last traded at $44.39, with a volume of 207235 shares. The stock had previously closed at $43.37.

Analyst Upgrades and Downgrades

Separately, Wall Street Zen downgraded Sturm, Ruger & Company, Inc. from a "buy" rating to a "hold" rating in a research report on Sunday, June 29th.

Sturm, Ruger & Company, Inc. Stock Down 0.8%

The business has a fifty day moving average of $35.82 and a 200 day moving average of $36.80. The firm has a market cap of $694.96 million, a P/E ratio of 138.81 and a beta of 0.10.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) last posted its earnings results on Wednesday, July 30th. The company reported $0.41 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.38 by $0.03. Sturm, Ruger & Company, Inc. had a return on equity of 9.53% and a net margin of 1.07%.The firm had revenue of $132.49 million during the quarter, compared to analysts' expectations of $121.99 million. During the same period in the previous year, the firm earned $0.47 earnings per share. The company's revenue was up 1.3% on a year-over-year basis. On average, sell-side analysts expect that Sturm, Ruger & Company, Inc. will post 2.31 EPS for the current fiscal year.

Sturm, Ruger & Company, Inc. Cuts Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were paid a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend was Friday, August 15th. Sturm, Ruger & Company, Inc.'s payout ratio is presently 206.45%.

Insider Transactions at Sturm, Ruger & Company, Inc.

In other Sturm, Ruger & Company, Inc. news, Director Christopher John Killoy sold 8,776 shares of the business's stock in a transaction dated Monday, September 22nd. The stock was sold at an average price of $40.00, for a total value of $351,040.00. Following the completion of the transaction, the director directly owned 28,249 shares of the company's stock, valued at approximately $1,129,960. The trade was a 23.70% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 4.60% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Public Sector Pension Investment Board boosted its position in Sturm, Ruger & Company, Inc. by 5.9% during the second quarter. Public Sector Pension Investment Board now owns 56,394 shares of the company's stock valued at $2,025,000 after purchasing an additional 3,130 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in Sturm, Ruger & Company, Inc. by 291.6% during the second quarter. Tower Research Capital LLC TRC now owns 3,031 shares of the company's stock valued at $109,000 after purchasing an additional 2,257 shares during the last quarter. Vident Advisory LLC boosted its position in Sturm, Ruger & Company, Inc. by 5.0% during the second quarter. Vident Advisory LLC now owns 15,699 shares of the company's stock valued at $564,000 after purchasing an additional 754 shares during the last quarter. Lazard Asset Management LLC boosted its position in Sturm, Ruger & Company, Inc. by 1.5% during the second quarter. Lazard Asset Management LLC now owns 60,012 shares of the company's stock valued at $2,154,000 after purchasing an additional 862 shares during the last quarter. Finally, Brevan Howard Capital Management LP boosted its position in Sturm, Ruger & Company, Inc. by 8.4% during the second quarter. Brevan Howard Capital Management LP now owns 8,028 shares of the company's stock valued at $288,000 after purchasing an additional 620 shares during the last quarter. 64.00% of the stock is owned by institutional investors and hedge funds.

About Sturm, Ruger & Company, Inc.

Sturm, Ruger & Co, Inc engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors.

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