Sturm, Ruger & Company, Inc. (NYSE:RGR) Reaches New 12-Month Low - Should You Sell?

Key Points

• Sturm, Ruger & Company, Inc. shares reached a new 52-week low at $32.68, closing at $32.97 with a trading volume of 97,644 shares.
• Recently, Wall Street analysts downgraded the company's stock from a "buy" to a "hold" rating, indicating a cautionary outlook on the stock's performance.
• The company reported a quarterly earnings per share (EPS) of $0.41, surpassing estimates, and had an annualized dividend of $0.64 with a yield of 2.0% despite a recent cut to its dividend.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) hit a new 52-week low on Friday . The company traded as low as $32.68 and last traded at $32.97, with a volume of 97644 shares. The stock had previously closed at $34.16.

Analyst Ratings Changes

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

Sturm, Ruger & Company, Inc. Price Performance

The firm has a market capitalization of $512.60 million, a P/E ratio of 102.32 and a beta of 0.07. The stock's 50 day moving average is $35.97 and its two-hundred day moving average is $37.15.

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

Sturm, Ruger & Company, Inc. Cuts Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be given a dividend of $0.16 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $0.64 annualized dividend and a dividend yield of 2.0%. Sturm, Ruger & Company, Inc.'s dividend payout ratio is currently 232.26%.

Insider Activity at Sturm, Ruger & Company, Inc.

In related news, VP Sarah F. Colbert sold 8,000 shares of the stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $35.80, for a total transaction of $286,400.00. Following the completion of the transaction, the vice president owned 564 shares in the company, valued at approximately $20,191.20. This represents a 93.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Timothy Lowney bought 2,200 shares of Sturm, Ruger & Company, Inc. stock in a transaction that occurred on Tuesday, May 6th. The shares were acquired at an average price of $33.37 per share, with a total value of $73,414.00. Following the acquisition, the vice president directly owned 8,874 shares of the company's stock, valued at $296,125.38. The trade was a 32.96% increase in their position. The disclosure for this purchase can be found here. Corporate insiders own 4.60% of the company's stock.

Institutional Trading of Sturm, Ruger & Company, Inc.

Large investors have recently added to or reduced their stakes in the company. GAMMA Investing LLC lifted its stake in Sturm, Ruger & Company, Inc. by 748.1% in the first quarter. GAMMA Investing LLC now owns 653 shares of the company's stock valued at $26,000 after acquiring an additional 576 shares during the last quarter. Byrne Asset Management LLC lifted its stake in Sturm, Ruger & Company, Inc. by 115.1% in the first quarter. Byrne Asset Management LLC now owns 968 shares of the company's stock valued at $38,000 after acquiring an additional 518 shares during the last quarter. Parallel Advisors LLC lifted its stake in Sturm, Ruger & Company, Inc. by 18,642.9% in the first quarter. Parallel Advisors LLC now owns 1,312 shares of the company's stock valued at $52,000 after acquiring an additional 1,305 shares during the last quarter. Whittier Trust Co. of Nevada Inc. lifted its stake in Sturm, Ruger & Company, Inc. by 506.1% in the first quarter. Whittier Trust Co. of Nevada Inc. now owns 1,400 shares of the company's stock valued at $55,000 after acquiring an additional 1,169 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its stake in Sturm, Ruger & Company, Inc. by 159.5% in the first quarter. PNC Financial Services Group Inc. now owns 1,422 shares of the company's stock valued at $56,000 after acquiring an additional 874 shares during the last quarter. Institutional investors and hedge funds own 64.00% of the company's stock.

Sturm, Ruger & Company, Inc. Company Profile

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.