Gun maker stocks surging as US sales rise amid gun rights debate

Sturm Ruger also leapt 7.4 percent, according to the New York Post.

Smith & Wesson Holding Corporation raised expectations Monday for third quarter results by $5 million and $660 million in sales three-quarters into the year.

The world’s largest gun company told investors that it expected sales to spike after news broke last Thursday of President Obama’s plan to announce executive actions to tighten usa gun control laws.

Ammunition makers Olin (which owns Winchester) and Vista Outdoor rallied too. The NSSF-adjusted numbers strip out background checks for licenses.

On Monday, Smith & Wesson revised its yearly outlook, saying sales are expected to reach $180 million, up from an original estimate of $155 million. The previous all-time high was 2.78 million in December 2012 – the month of the Newtown massacre.

The market’s behavior is logical, considering the clockwork relationship between any federal gun policy change and demand for firearms. Finally, Lake Street Capital reiterated a “buy” rating and issued a $27.00 price objective (up from $24.00) on shares of Smith & Wesson Holding Corp in a research report on Wednesday, December 9th.

“It’s the biggest growth of the year”, said Wedbush Securities analyst James Hardiman.

The attack during November in Paris that left over 100 dead and another one in California only two weeks later killed 14 capped a year that had massing shootings one after another.

Smith & Wesson has said over the years that the holiday shopping season is important for it, as it is for many manufacturers of consumer goods given as gifts.

News of the stronger gun market saw Smith & Wesson’s shares close up 5.9% on Monday, despite stock markets in general falling sharply.

Smith & Wesson shares were up 12.2 percent in morning trading at $26.12, after hitting a daily high of $26.54.

He added: “Until we have a Congress that’s in line with the majority of Americans, there are actions within my legal authority that we can take to help reduce gun violence and save more lives – actions that protect our rights and our kids”.

The NSSF agreed that more resources should be devoted to the FBI’s National Instant Criminal Background Check System (NICS), which has been the subject of complaints from gun owners and merchants for slow response times. Gun sales in Ferguson, Missouri, soared in the months following protests that came as a response to the police killing of black teenager Michael Brown in August 2014.