Wall Street Zen Downgrades Smith & Wesson Brands (NASDAQ:SWBI) to Sell

Key Points

• Wall Street Zen has downgraded Smith & Wesson Brands (NASDAQ:SWBI) from a "hold" rating to a "sell" in a recent research note.
• Lake Street Capital has also revised their target price for the company, lowering it from $12.50 to $11.00, while maintaining a "buy" rating.
• Smith & Wesson Brands reported disappointing quarterly earnings with an EPS of $0.20, missing estimates and showing a decline in revenue by 11.6% year-over-year.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Separately, Lake Street Capital decreased their target price on Smith & Wesson Brands from $12.50 to $11.00 and set a "buy" rating for the company in a research note on Monday, June 23rd.

Smith & Wesson Brands Stock Performance

Shares of SWBI stock opened at $8.11 on Friday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.31 and a current ratio of 4.16. Smith & Wesson Brands has a one year low of $7.73 and a one year high of $15.35. The company's 50-day simple moving average is $8.75 and its 200-day simple moving average is $9.45. The stock has a market capitalization of $356.84 million, a price-to-earnings ratio of 30.04 and a beta of 0.91.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last issued its quarterly earnings results on Wednesday, June 18th. The company reported $0.20 EPS for the quarter, missing the consensus estimate of $0.23 by ($0.03). Smith & Wesson Brands had a return on equity of 3.71% and a net margin of 2.60%. The company had revenue of $140.76 million for the quarter, compared to the consensus estimate of $152.41 million. During the same period in the previous year, the business posted $0.45 EPS. The business's revenue for the quarter was down 11.6% on a year-over-year basis. Equities analysts anticipate that Smith & Wesson Brands will post 0.47 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Smith & Wesson Brands

A number of hedge funds and other institutional investors have recently bought and sold shares of SWBI. Financial Harvest LLC bought a new stake in shares of Smith & Wesson Brands during the first quarter valued at approximately $31,000. PNC Financial Services Group Inc. raised its holdings in shares of Smith & Wesson Brands by 162.1% during the first quarter. PNC Financial Services Group Inc. now owns 4,320 shares of the company's stock valued at $40,000 after buying an additional 2,672 shares during the last quarter. Spurstone Advisory Services LLC bought a new stake in shares of Smith & Wesson Brands during the fourth quarter valued at approximately $47,000. Byrne Asset Management LLC raised its holdings in shares of Smith & Wesson Brands by 145.0% during the first quarter. Byrne Asset Management LLC now owns 5,391 shares of the company's stock valued at $50,000 after buying an additional 3,191 shares during the last quarter. Finally, Caption Management LLC bought a new stake in shares of Smith & Wesson Brands during the fourth quarter valued at approximately $51,000. 59.33% of the stock is currently owned by institutional investors and hedge funds.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm's brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech.

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