Smith & Wesson Brands (NASDAQ:SWBI) Stock Falls 6.6% – Time to Sell?

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) shares dropped 6.6% during mid-day trading on Friday. The stock traded as low as $13.42 and last traded at $13.4080. Approximately 255,705 shares were traded during trading, a decline of 57% from the average daily volume of 597,383 shares. The stock had previously closed at $14.35.

Analyst Upgrades and Downgrades

Separately, Weiss Ratings downgraded Smith & Wesson Brands from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, July 29th. One investment analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Smith & Wesson Brands has an average rating of “Hold” and a consensus target price of $16.50.

Smith & Wesson Brands Stock Performance

The company has a debt-to-equity ratio of 0.19, a current ratio of 3.62 and a quick ratio of 0.98. The stock’s 50-day moving average price is $13.80 and its 200 day moving average price is $14.57. The firm has a market cap of $611.84 million, a P/E ratio of 25.27 and a beta of 0.80.

Smith & Wesson Brands (NASDAQ:SWBI) last posted its quarterly earnings results on Thursday, September 3rd. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of ($0.06) by $0.12. The firm had revenue of $112.59 million for the quarter, compared to analyst estimates of $98.70 million. Smith & Wesson Brands had a return on equity of 6.60% and a net margin of 4.44%. The business’s quarterly revenue was up 32.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.08) EPS. As a group, equities analysts predict that Smith & Wesson Brands, Inc. will post 0.63 EPS for the current year.

Smith & Wesson Brands Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 17th were issued a dividend of $0.13 per share. The ex-dividend date of this dividend was Thursday, September 17th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 3.8%. Smith & Wesson Brands’s payout ratio is presently 96.30%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in Smith & Wesson Brands in the 2nd quarter worth about $61,549,000. Dimensional Fund Advisors LP increased its position in Smith & Wesson Brands by 5.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,616,319 shares of the company’s stock worth $37,492,000 after purchasing an additional 143,069 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Smith & Wesson Brands during the 2nd quarter worth $6,423,000. Arrowstreet Capital Limited Partnership raised its holdings in Smith & Wesson Brands by 68.0% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 364,994 shares of the company’s stock valued at $5,230,000 after buying an additional 147,795 shares during the last quarter. Finally, Squarepoint Ops LLC raised its position in Smith & Wesson Brands by 43.4% during the 2nd quarter. Squarepoint Ops LLC now owns 166,534 shares of the company’s stock worth $2,505,000 after purchasing an additional 50,429 shares during the last quarter. 59.33% of the stock is owned by institutional investors and hedge funds.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is an American firearms manufacturer that designs, manufactures, and sells handguns, long guns, and related firearms products. Its portfolio includes pistols, revolvers, modern sporting rifles, and bolt-action rifles marketed under the Smith & Wesson and M&P brands, along with specialized products associated with its Performance Center.

The company serves a range of customers, including consumers, law enforcement agencies, military organizations, and security professionals.