Smith & Wesson Holding Corp (NASDAQ:SWHC) shares increased considerably today, reaching highs not seen for approximately eight years. The reasoning for investors to flock toward the stock is the potential that we will soon see increased regulations and restrictions on guns. This has lead investors to expect an increase in purchases of rifles and pistols in preparation for possible regulation.
After the recent San Bernardino shootings that left over a dozen people dead and more injured, there have been calls for stricter regulations, including from President Barack Obama.
It should be interesting to follow this stock and its correlation to potential gun laws in the months to come.The stock is up 6.42% or $1.22 following the news, hitting $20.21 per share. About 5.30 million shares traded hands or up 636.13% from the average. SWHC has risen 25.02% since May 4, 2015 and is currently uptrending. It has outperformed the S&P500 by 26.09%.
From a total of 5 analysts covering Smith & Wesson Holding Corp (NASDAQ:SWHC) stock, 4 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 80% of the ratings are positive. The highest target price is $24.0 while the lowest target price is $19. The mean of all analyst targets is $21 which is 3.91% above today’s ($20.21) stock price. Smith & Wesson Holding Corp was the topic of 6 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Wedbush reinitiated shares on October 13 with a “Outperform” rating. Lake Street maintained SWHC stock in a recent report from August 28 with a “Buy” rating.
The institutional sentiment increased to 1.1 in Q2 2015. It’s up 0.25, from 0.85 in 2015Q1. The ratio improved, as 14 funds sold all their Smith & Wesson Holding Corp shares they owned while 54 reduced their positions. 29 funds bought stakes while 46 increased their total positions. Institutions now own 41.20 million shares which is 5.17% more than the previous share count of 39.17 million in 2015Q1.
Royal Capital Management Llc holds 6.71% of its total portfolio in Smith & Wesson Holding Corp, equating to 187,123 shares. Eubel Brady & Suttman Asset Management Inc owns 900,523 shares representing 4.91% of their total US portfolio. Moreover, Park West Asset Management Llc has 1.47% of their total portfolio invested in the company, equating to 955,166 shares. The Oregon-based Hood River Capital Management Llc has a total of 1.27% of their portfolio invested in the stock. Olstein Capital Management L.P., a New York-based fund reported 658,145 shares owned.
Since March 17, 2015, the stock had 0 insider buys, and 8 sales for a total of $2.66 million in net activity. Cicero Robert J. sold 17,710 shares worth $312,922. Scott Robert L sold 3,800 shares worth $64,600. Golden Michael F sold 12,534 shares worth $217,174. Buchanan Jeffrey D sold 12,021 shares worth $223,023. The insider Monheit Barry M sold 20,000 shares worth $370,000.
Smith & Wesson Holding Corporation is a maker of firearms. The company has a market cap of $1.03 billion. The Firm makes an array of handguns, including revolvers and pistols; long guns, including modern sporting rifles, bolt action rifles, and single shot rifles; handcuffs, and firearm-related products and accessories. It has 22.32 P/E ratio. The Firm operates through two divisions: firearms and accessories.