Sturm, Ruger & Company, Inc. (NYSE:RGR) Sets New 12-Month Low - Here's Why

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)'s stock price reached a new 52-week low during trading on Friday . The stock traded as low as $32.68 and last traded at $32.97, with a volume of 97644 shares trading hands. The stock had previously closed at $34.16.

Analysts Set New Price Targets

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

Sturm, Ruger & Company, Inc. Stock Up 2.3%

The stock's fifty day simple moving average is $35.92 and its 200-day simple moving average is $37.14. The company has a market capitalization of $541.27 million, a PE ratio of 108.02 and a beta of 0.07.

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

Sturm, Ruger & Company, Inc. Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 29th. Investors of record on Friday, August 15th will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Friday, August 15th. Sturm, Ruger & Company, Inc.'s dividend payout ratio is currently 206.45%.

Insider Transactions at Sturm, Ruger & Company, Inc.

In other news, VP Sarah F. Colbert sold 8,000 shares of the company's stock in a transaction that occurred on Monday, June 2nd. The shares were sold at an average price of $35.80, for a total value of $286,400.00. Following the completion of the sale, the vice president directly owned 564 shares of the company's stock, valued at approximately $20,191.20. This represents a 93.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Christopher John Killoy sold 8,583 shares of the company's stock in a transaction that occurred on Monday, June 9th. The stock was sold at an average price of $37.01, for a total transaction of $317,656.83. Following the completion of the sale, the director directly owned 41,559 shares of the company's stock, valued at approximately $1,538,098.59. This represents a 17.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 4.60% of the company's stock.

Institutional Trading of Sturm, Ruger & Company, Inc.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Byrne Asset Management LLC increased its stake in Sturm, Ruger & Company, Inc. by 32.0% in the 2nd quarter. Byrne Asset Management LLC now owns 1,278 shares of the company's stock valued at $46,000 after buying an additional 310 shares during the period. Nisa Investment Advisors LLC increased its stake in Sturm, Ruger & Company, Inc. by 3.1% in the 1st quarter. Nisa Investment Advisors LLC now owns 11,125 shares of the company's stock valued at $437,000 after buying an additional 337 shares during the period. Barclays PLC increased its stake in Sturm, Ruger & Company, Inc. by 1.1% in the 4th quarter. Barclays PLC now owns 32,453 shares of the company's stock valued at $1,148,000 after buying an additional 356 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in Sturm, Ruger & Company, Inc. by 4.2% in the 4th quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,387 shares of the company's stock valued at $332,000 after buying an additional 380 shares during the period. Finally, Martingale Asset Management L P grew its position in Sturm, Ruger & Company, Inc. by 1.6% in the first quarter. Martingale Asset Management L P now owns 24,046 shares of the company's stock worth $945,000 after acquiring an additional 380 shares in 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.