Sturm, Ruger & Company, Inc. (NYSE:RGR) Stock Price Passes Above 200 Day Moving Average - Time to Sell?

Key Points

• Sturm, Ruger & Company, Inc. shares surpassed their 200-day moving average, trading high at $45.23, but analysts have expressed caution with a consensus rating of "Sell."
• Recent earnings reported a $0.41 EPS, exceeding expectations, but the company's dividend payout ratio is concerning at over 206%.
• Major insider activity includes Director Christopher John Killoy selling 8,776 shares, indicating a 23.70% decrease in their ownership of the company.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $36.97 and traded as high as $45.23. Sturm, Ruger & Company, Inc. shares last traded at $44.98, with a volume of 199,448 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on RGR. Wall Street Zen lowered shares of Sturm, Ruger & Company, Inc. from a "buy" rating to a "hold" rating in a report on Sunday, June 29th. Weiss Ratings reissued a "sell (d+)" rating on shares of Sturm, Ruger & Company, Inc. in a research note on Saturday, September 27th. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat.com, Sturm, Ruger & Company, Inc. presently has a consensus rating of "Sell".

Sturm, Ruger & Company, Inc. Stock Performance

The business's 50-day moving average is $36.86 and its two-hundred day moving average is $36.97. The firm has a market capitalization of $726.88 million, a price-to-earnings ratio of 145.10 and a beta of 0.09.

Sturm, Ruger & Company, Inc. (NYSE:RGR - Get Free Report) last issued its earnings results on Wednesday, July 30th. The company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.38 by $0.03. The firm had revenue of $132.49 million during the quarter, compared to the consensus estimate of $121.99 million. Sturm, Ruger & Company, Inc. had a net margin of 1.07% and a return on equity of 9.53%. The business's quarterly revenue was up 1.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.47 earnings per share. Analysts forecast 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 was paid on Friday, August 29th. Investors of record on Friday, August 15th were paid a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend was Friday, August 15th. Sturm, Ruger & Company, Inc.'s dividend payout ratio (DPR) is presently 206.45%.

Insiders Place Their Bets

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. Corporate insiders own 4.60% of the company's stock.

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

Several institutional investors have recently modified their holdings of RGR. GAMMA Investing LLC increased its stake in Sturm, Ruger & Company, Inc. by 748.1% during the 1st quarter. GAMMA Investing LLC now owns 653 shares of the company's stock worth $26,000 after purchasing an additional 576 shares in the last quarter. Aurora Private Wealth Inc. acquired a new position in shares of Sturm, Ruger & Company, Inc. in the first quarter valued at approximately $1,570,000. Ballentine Partners LLC bought a new stake in shares of Sturm, Ruger & Company, Inc. during the second quarter worth $325,000. Invesco Ltd. raised its holdings in shares of Sturm, Ruger & Company, Inc. by 9.2% during the first quarter. Invesco Ltd. now owns 154,872 shares of the company's stock worth $6,085,000 after acquiring an additional 13,099 shares during the period. Finally, Nuveen LLC acquired a new stake in shares of Sturm, Ruger & Company, Inc. during the first quarter worth $2,223,000. Institutional investors own 64.00% of the company's stock.

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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