While President Obama is set to unveil new gun laws via an Executive Order, one gun manufacturer, Smith & Wesson Holding Corp (NASDAQ:SWHC), seems to predicting higher sales and profits than they had originally hoped for over the next few months. The company today guided higher than analysts had been expecting. For their fiscal third quarter Smith & Wesson Holding Corp (NASDAQ:SWHC) now expects to report revenue between $175-$180 million on an EPS of $0.39-$0.41. Analysts were expecting the company to report $154.6 million in revenue on an EPS of just $0.28 for the quarter.
“The company indicated that the sell-through rate of its products at distribution has been stronger than originally anticipated, resulting in reduced distributor inventories of its firearms,” wrote Smith & Wesson. “The company added that Adjusted National Instant Criminal Background Check System (NICS) data for the month of December, which serves as an indicator of consumer purchases, reflected strong growth versus December 2014.”
Additionally, the company now says that their fiscal full-year 2016 numbers, which end in April of this year, will also be higher. They expect to bring in between $650 – $660 million in revenue on an EPS of $1.36-$1.41 for the year.
The stock closed at $23.28 during the last trading session. It is up 56.77% since June 1, 2015 and is uptrending. It has outperformed the S&P500 by 59.78%.
From a total of 6 analysts covering Smith & Wesson Holding Corp (NASDAQ:SWHC) stock, 4 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $27 while the lowest target price is $19. The mean of all analyst targets is $22.80 which is -2.06% below today’s ($23.28) stock price. Smith & Wesson Holding Corp was the topic of 9 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Lake Street maintained shares on December 9 with a “Buy” rating. RBC Capital Markets downgraded SWHC stock in a recent report from December 9 to a “Sector Perform” rating. Finally, Cowen & Co maintained the stock with a “Outperform” rating in a report they issued on an August 29.
The institutional sentiment increased to 1.34 in Q2 2015. It’s up 0.24, from 1.1 in 2015Q2. The ratio increased, as 22 funds sold all their Smith & Wesson Holding Corp shares they owned while 52 reduced their positions. 46 funds bought stakes while 53 increased their total positions. Institutions now own 38.66 million shares which is 6.17% less than the previous share count of 41.20 million in 2015Q2.
Royal Capital Management Llc holds 5.66% of its total portfolio in Smith & Wesson Holding Corp, equating to 125,000 shares. Eubel Brady & Suttman Asset Management Inc owns 594,998 shares representing 3.41% of their total US portfolio. Moreover, Hood River Capital Management Llc has 1.48% of their total portfolio invested in the company, equating to 634,327 shares. The Louisiana-based Price Capital Management Inc. has a total of 0.98% of their portfolio invested in the stock. Park West Asset Management Llc, a California-based fund reported 561,253 shares owned.
Since March 17, 2015, the stock had 0 insider buys, and 5 insider sales for a total of $1.19 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 $1.27 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 22.59 P/E ratio. The Firm operates through two divisions: firearms and accessories.