Smith & Wesson Brands (NASDAQ:SWBI) Stock Price Down 4.8% – Here’s What Happened

Shares of Smith & Wesson Brands, Inc. (NASDAQ:SWBI) fell 4.8% on Thursday . The stock traded as low as $12.24 and last traded at $12.1650. 167,543 shares changed hands during trading, a decline of 72% from the average session volume of 597,406 shares. The stock had previously closed at $12.78.

Trending Headlines about Smith & Wesson Brands

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Strong Q1 results: Fiscal Q1 net sales increased 32.3% year over year to $112.6 million, gross margin was 28.7%, and earnings were $0.06 per share versus a consensus loss estimate of $0.06. The performance was attributed to solid handgun and long-gun demand, new product launches, and a favorable product mix. Smith & Wesson Brands Reports First Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Encouraging outlook: Management projected fiscal 2027 revenue of approximately $550.0 million to $560.5 million, broadly in line with analyst expectations, while second-quarter revenue guidance of about $137.1 million exceeded the $132.2 million consensus estimate. The company also indicated that second-quarter sales could be roughly 10% above the prior-year period and forecast full-year revenue growth of 5% to 7%. Smith & Wesson Projects Fiscal 2027 Revenue Growth
• Positive Sentiment: Analyst upgrade and shareholder return: An analyst upgraded SWBI from “hold” to “buy,” citing the earnings beat, improving background-check trends, product innovation, and an attractive valuation. The company also declared a quarterly dividend of $0.13 per share, representing an indicated yield of roughly 4.2% based on the supplied market data. Smith & Wesson Rating Upgrade
• Negative Sentiment: Profitability and balance-sheet concerns remain: Coverage noted that rising spending is weighing on the balance sheet. Despite the sales rebound, SWBI’s reported net margin was only 3.53% and return on equity was 5.01%, suggesting investors will continue monitoring cost control and cash generation. Smith & Wesson Q1 Earnings and Rising Spending

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Weiss Ratings cut shares of Smith & Wesson Brands from a “hold (c+)” rating to a “hold (c)” rating in a research note on Wednesday, July 29th. Zacks Research upgraded shares of Smith & Wesson Brands to a “hold” rating in a research note on Tuesday, June 23rd. Finally, Lake Street Capital increased their price target on shares of Smith & Wesson Brands from $14.00 to $16.50 and gave the stock a “buy” rating in a report on Thursday, June 18th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, Smith & Wesson Brands has a consensus rating of “Hold” and a consensus price target of $16.50.

Smith & Wesson Brands Stock Up 5.1%

The stock has a market cap of $577.99 million, a price-to-earnings ratio of 23.87 and a beta of 0.86. The business’s 50 day moving average is $14.42 and its 200-day moving average is $14.41. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.13 and a current ratio of 3.20.

Smith & Wesson Brands (NASDAQ:SWBI) last posted its quarterly earnings data on Thursday, September 3rd. The company reported $0.06 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.12. The company had revenue of $129.37 million during the quarter, compared to analysts’ expectations of $98.70 million. Smith & Wesson Brands had a net margin of 4.44% and a return on equity of 6.63%. The firm’s revenue for the quarter was up 32.3% on a year-over-year basis. During the same period in the prior year, the business posted ($0.08) earnings per share. On average, sell-side analysts predict that Smith & Wesson Brands, Inc. will post 0.55 EPS for the current fiscal year.

Smith & Wesson Brands Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 17th will be given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Thursday, September 17th. Smith & Wesson Brands’s dividend payout ratio is 96.30%.

Institutional Investors Weigh In On Smith & Wesson Brands

Several institutional investors have recently bought and sold shares of the company. Allworth Financial LP acquired a new stake in shares of Smith & Wesson Brands in the second quarter worth approximately $27,000. Western Wealth Management LLC acquired a new position in Smith & Wesson Brands in the 1st quarter valued at $34,000. Caitong International Asset Management Co. Ltd acquired a new position in Smith & Wesson Brands in the 4th quarter valued at $30,000. Public Employees Retirement System of Ohio purchased a new position in Smith & Wesson Brands in the 2nd quarter valued at $59,000. Finally, Legal & General Group Plc purchased a new position in Smith & Wesson Brands in the 2nd quarter valued at $65,000. 59.33% of the stock is currently owned by institutional investors and hedge funds.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.