Sturm, Ruger & Company, Inc. (NYSE:RGR) Shares Gap Down - Time to Sell?

Key Points

• Sturm, Ruger (RGR) gapped down — the stock opened at $38.68 after a $40.64 close and last traded near $39.97; Wall Street sentiment is mixed-to-negative with a MarketBeat consensus of "Reduce" (one Buy, two Sells) and a $43 target.
• Quarterly results missed EPS but raised dividend — RGR reported $0.26 EPS vs. $0.32 expected while revenue beat at $151.1M, the company has a negative net margin and negative P/E, and it raised its quarterly dividend to $0.08 (annualized $0.32, ~0.8% yield).

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $40.64, but opened at $38.68. Sturm, Ruger & Company, Inc. shares last traded at $39.97, with a volume of 34,538 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on RGR. Weiss Ratings restated a "sell (d+)" rating on shares of Sturm, Ruger & Company, Inc. in a report on Friday, March 27th. Lake Street Capital increased their price objective on Sturm, Ruger & Company, Inc. from $41.00 to $43.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Finally, Zacks Research downgraded Sturm, Ruger & Company, Inc. from a "hold" rating to a "strong sell" rating in a report on Thursday, March 5th. One research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $43.00.

Sturm, Ruger & Company, Inc. Stock Performance

The stock has a fifty day simple moving average of $38.60 and a two-hundred day simple moving average of $37.74. The stock has a market capitalization of $642.78 million, a price-to-earnings ratio of -143.98 and a beta of 0.15.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) last issued its quarterly earnings results on Monday, March 2nd. The company reported $0.26 earnings per share for the quarter, missing analysts' consensus estimates of $0.32 by ($0.06). Sturm, Ruger & Company, Inc. had a positive return on equity of 6.93% and a negative net margin of 0.80%.The business had revenue of $151.06 million for the quarter, compared to analyst estimates of $139.24 million. During the same quarter in the previous year, the business posted $0.62 earnings per share. The business's revenue was up 3.6% on a year-over-year basis. Research analysts forecast that Sturm, Ruger & Company, Inc. will post 2.31 earnings per share for the current year.

Sturm, Ruger & Company, Inc. Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th were issued a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, March 16th. This is an increase from Sturm, Ruger & Company, Inc.'s previous quarterly dividend of $0.04. Sturm, Ruger & Company, Inc.'s dividend payout ratio (DPR) is -114.29%.

Hedge Funds Weigh In On Sturm, Ruger & Company, Inc.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Kestra Advisory Services LLC bought a new position in shares of Sturm, Ruger & Company, Inc. during the 4th quarter worth about $25,000. Flagship Harbor Advisors LLC bought a new position in shares of Sturm, Ruger & Company, Inc. during the 4th quarter worth about $29,000. GAMMA Investing LLC boosted its position in shares of Sturm, Ruger & Company, Inc. by 158.2% during the 4th quarter. GAMMA Investing LLC now owns 1,216 shares of the company's stock worth $40,000 after purchasing an additional 745 shares in the last quarter. Parallel Advisors LLC boosted its position in shares of Sturm, Ruger & Company, Inc. by 176.5% during the 3rd quarter. Parallel Advisors LLC now owns 1,128 shares of the company's stock worth $49,000 after purchasing an additional 720 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Sturm, Ruger & Company, Inc. by 259.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,568 shares of the company's stock worth $56,000 after purchasing an additional 1,132 shares in the last quarter. Institutional investors own 64.00% of the company's stock.

About Sturm, Ruger & Company, Inc.

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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