Sturm, Ruger & Company (RGR) And Other Gun Stocks Soar on Pending Obama Action


While many investors may think that President Obama’s pending actions against gun ownership may be an inhibiting factor for companies like Sturm, Ruger & Company (NYSE:RGR), whose main business is the manufacture and sale of guns, it may be the exact opposite.

Obama likely will take actions to close the gun show loophole, and require more stringent background checks. While this may in fact limit sales of guns in the long term, most of the limiting factors will relate to gun show sales. This could actually increase sales of guns by manufacturers and retail stores. Additionally, there has recently been a surge in gun purchases, which may be benefitting companies like Sturm, Ruger & Company (NYSE:RGR), as individuals scurry to purchase firearms prior to any Obama’s possible actions being enacted.

The stock is currently trading higher by 8.41% or $5.16 following the positive news, hitting $66.55 per share at the time of us publishing this article. About 217,587 shares traded hands or up 8.98% from the average. RGR has risen 14.47% since June 1, 2015 and is currently uptrending. It has outperformed the S&P500 by 17.48%.

The institutional sentiment decreased to 0.89 in Q2 2015. It’s down 0.06, from 0.95 in 2015Q2. The ratio fall, as 20 funds sold all their Sturm, Ruger & Company shares they owned while 56 reduced their positions. 20 funds bought stakes while 48 increased their total positions. Institutions now own 10.67 million shares which is 9.86% less than the previous share count of 11.84 million in 2015Q2.

Morgan Dempsey Capital Management Llc holds 6.35% of its total portfolio in Sturm, Ruger & Company, equating to 305,506 shares. Euclidean Technologies Management Llc owns 37,468 shares representing 2.3% of their total US portfolio. Moreover, London Co Of Virginia has 1.29% of their total portfolio invested in the company, equating to 2.38 million shares. The Connecticut-based Tide Point Capital Management Lp has a total of 0.85% of their portfolio invested in the stock. Alphamark Advisors Llc, a Kentucky-based fund reported 14,500 shares owned.

Since March 27, 2015, the stock had 0 insider buys, and 3 selling transactions for a total of $601,460 in net activity. Reid Kevin B. Sr sold 2,000 shares worth $131,460. Killoy Christopher John sold 5,000 shares worth $320,000. Sullivan Thomas Patrick sold 8,204 shares worth $441,293. Jacobi C Michael sold 2,124 shares worth $117,404. The insider Whitaker Ronald C sold 8,881 shares worth $489,698.

Sturm, Ruger & Company, Inc. is engaged in the design, manufacture, and sale of firearms to domestic customers. The company has a market cap of $1.24 billion. The Firm has two reportable divisions: firearms and castings. It has 42.52 P/E ratio. The firearms segment makes and sells rifles, pistols, revolvers, and shotguns principally to a number of federally-licensed, independent wholesale distributors primarily located in the United States.