Will Today’s RBC Capital Mkts Downgrade Ultimately Hurt The Stock Price of Smith & Wesson (NASDAQ:SWHC)?

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Smith & Wesson (NASDAQ:SWHC) Receives a Downgrade

RBC Capital Mkts has downgraded Smith & Wesson (NASDAQ:SWHC) shares to a Sector Perform in recent note revealed this morning, while they’ve also published a one year target price per share at $23.0. SWHC’s previous rating was a solid Outperform.

From a total of 9 analysts covering Smith & Wesson Holding Corp (NASDAQ:SWHC) stock, 8 rate it a ”Buy”, 1 a “Sell”, and 1 a ”Hold”. This means that 80% of the ratings are positive. The highest target price is $24 while the lowest target price is $12. The mean of all analyst targets is $20.11 with a -0.94% below today’s ($21.2) 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 “Outperform” rating. Lake Street maintained SWHC stock in a recent report from August 28 with “Buy” rating.

Approximately 65,417 shares of stock traded hands. Smith & Wesson Holding Corp (NASDAQ:SWHC) has risen 43.36% since May 6, 2015 and is uptrending. It has outperformed by 44.16% the S&P500.

The overall sentiment of institutions has increased to 1.34 in Q2 2015. Its up 0.24, from 1.1 in 2015Q2. The ratio improved, as 22 institutions have sold all the shares of Smith & Wesson Holding Corp that they owned while 52 funds have taken shares off the table. 46 funds have purchased shares for the first time while 53 added to their positions. These institutions now hold 38.66 million shares or 6.17% less than the 41.20 million shares they owned in 2015Q2.

The Fund Royal Capital Management Llc currently is holding shares equating to 5.66% of its total portfolio in Smith & Wesson Holding Corp representing a total of 125,000 shares. Another fund,Eubel Brady & Suttman Asset Management Inc, is holding a total of 594,998 shares equating to 3.41% of their holdings. Additionally, Hood River Capital Management Llc has a 634,327 share stake in Smith & Wesson Holding Corp which represents 1.48% of their total portfolio. The Fund, Price Capital Management Inc., based out of Louisiana, has also built up a stake in the stock, which represents a total of 0.98% of their total portfolio. Finally Park West Asset Management Llc, a fund which is based in the state of California reported a total holdings of 561,253 shares.

Insider activity is a very important aspect to track on any stock. Going back to March 17, 2015, shareholders of Smith & Wesson Holding Corp have witnessed 0 insider purchases, and a total of 8 selling transactions equating to a net activity of approximately $2.66 million . Cicero Robert J. sold 17,710 shares worth approximately $312,922. Scott Robert L sold 3,800 shares worth approximately $64,600. Golden Michael F sold 12,534 shares worth approximately $217,174. Buchanan Jeffrey D sold 12,021 shares worth approximately $223,023. The company 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 $1.10 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 23.41 P/E ratio. The Firm operates through two divisions: firearms and accessories.

According to Zacks Investment Research, “Smith & Wesson Holding Corporation is one of the world’s leading producers of quality handguns, law enforcement products and firearm safety and security products. Law enforcement personnel, military personnel, target shooters, hunters, collectors and firearms enthusiasts throughout the world have used the company’s products with confidence for 150 years. Smith & Wesson Corp. also manufactures and markets Smith & Wesson branded handcuffs and other products utilizing its metal working expertise and providing products and services to many external customers.” Get a free copy of the Zacks research report on Smith & Wesson Holding Corp (SWHC).

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