As the world knows, Supreme Court Justice Antonin Scalia passed away on Saturday. While the death of such a prominant figure is devasting on a human level, on a political level it could mean a future that is controlled more by liberals. This has lead investors to become bullish on shares of Smith & Wesson Holding Corp (NASDAQ:SWHC) this morning.
It can safely be assumed that the new Supreme Court Justic to take over for Scalia will be more liberal than his far right winged beliefs were. The odds are that a Democrat (either Obama or the next President) will be selecting his replacement, and this could mean major changes in the law making body of the country. One such law is that of gun rights. Investors are assuming that gun laws will become stricter with Scalia gone, meaning stocks like Smith & Wesson Holding Corp (NASDAQ:SWHC) are jumping today, as investors always look at more stringent gun laws a signal of forthcoming increases in gun sales.
When the U.S. is assuming that stricter laws are coming into place, those who were considering purchasing a gun try and do so prior to the laws going into effect. This is the reason why Smith & Wesson Holding Corp (NASDAQ:SWHC) is surging today.
The stock closed at $22.84 during the last trading session. It is up 38.93% since July 10, 2015 and is uptrending. It has outperformed the S&P500 by 48.40%.
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 $29.0 while the lowest target price is $19. The mean of all analyst targets is $23.50 which is 2.89% above today’s ($22.84) stock price. Smith & Wesson Holding Corp was the topic of 13 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. Wedbush maintained shares on January 21 with a “Neutral” rating. Cowen & Co maintained shares with a”Outperform” rating and a $20 target share price in their report from an August 29. Wunderlich maintained SWHC stock in a recent report from January 5 with a “Buy” rating. Finally, RBC Capital Markets downgraded the stock to a “Sector Perform” rating in a report they issued on a December 9.
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 $1.29 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 22.16 P/E ratio. The Firm operates through two divisions: firearms and accessories.