Smith & Wesson Brands (NASDAQ:SWBI) Cut to "Sell" at Wall Street Zen

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.

Wall Street Zen cut shares of Smith & Wesson Brands (NASDAQ:SWBI - Free Report) from a hold rating to a sell rating in a report released on Saturday morning.

Separately, Lake Street Capital dropped their target price on shares of Smith & Wesson Brands from $12.50 to $11.00 and set a "buy" rating on the stock in a research report on Monday, June 23rd. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, Smith & Wesson Brands currently has a consensus rating of "Moderate Buy" and an average price target of $12.00.

Smith & Wesson Brands Stock Down 0.9%

Shares of Smith & Wesson Brands stock traded down $0.07 on Friday, reaching $7.93. The stock had a trading volume of 576,650 shares, compared to its average volume of 701,861. The company has a 50 day moving average price of $8.60 and a 200 day moving average price of $9.39. The company has a quick ratio of 1.31, a current ratio of 4.16 and a debt-to-equity ratio of 0.30. Smith & Wesson Brands has a 1 year low of $7.73 and a 1 year high of $15.35. The stock has a market capitalization of $348.92 million, a P/E ratio of 29.37 and a beta of 0.91.

Smith & Wesson Brands (NASDAQ:SWBI - Get Free Report) last issued its quarterly earnings data on Wednesday, June 18th. The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 firm had revenue of $140.76 million during the quarter, compared to analysts' expectations of $152.41 million. During the same period in the previous year, the firm earned $0.45 EPS. The firm's quarterly revenue was down 11.6% on a year-over-year basis. As a group, equities research analysts forecast that Smith & Wesson Brands will post 0.47 EPS for the current year.

Smith & Wesson Brands Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, July 21st. Shareholders of record on Monday, July 7th were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 6.6%. The ex-dividend date of this dividend was Monday, July 7th. Smith & Wesson Brands's payout ratio is currently 192.59%.

Institutional Trading of Smith & Wesson Brands

Several large investors have recently made changes to their positions in SWBI. LPL Financial LLC boosted its holdings in shares of Smith & Wesson Brands by 3.1% in the 4th quarter. LPL Financial LLC now owns 49,661 shares of the company's stock valued at $502,000 after acquiring an additional 1,482 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Smith & Wesson Brands by 9.8% in the 4th quarter. JPMorgan Chase & Co. now owns 144,476 shares of the company's stock valued at $1,460,000 after acquiring an additional 12,910 shares during the last quarter. Wells Fargo & Company MN boosted its holdings in shares of Smith & Wesson Brands by 21.8% in the 4th quarter. Wells Fargo & Company MN now owns 43,535 shares of the company's stock valued at $440,000 after acquiring an additional 7,795 shares during the last quarter. Invesco Ltd. boosted its holdings in shares of Smith & Wesson Brands by 9.0% in the 4th quarter. Invesco Ltd. now owns 131,776 shares of the company's stock valued at $1,332,000 after acquiring an additional 10,887 shares during the last quarter. Finally, Raymond James Financial Inc. purchased a new stake in shares of Smith & Wesson Brands in the 4th quarter valued at $568,000. 59.33% of the stock is owned by hedge funds and other institutional investors.

Smith & Wesson Brands Company Profile

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.