Smith & Wesson Brands (NASDAQ:SWBI) Reaches New 52-Week Low Following Weak Earnings

Smith & Wesson Brands, Inc. (NASDAQ:SWBI)’s share price reached a new 52-week low on Friday following a weaker than expected earnings announcement. The company traded as low as $11.54 and last traded at $11.54, with a volume of 178298 shares traded. The stock had previously closed at $13.63.

The company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.06). Smith & Wesson Brands had a net margin of 6.74% and a return on equity of 9.20%. The company had revenue of $129.70 million for the quarter, compared to the consensus estimate of $133.53 million. During the same period in the prior year, the firm posted $0.14 EPS. The business’s revenue for the quarter was up 3.8% on a year-over-year basis.

Smith & Wesson Brands Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Thursday, December 19th will be issued a dividend of $0.13 per share. The ex-dividend date is Thursday, December 19th. This represents a $0.52 dividend on an annualized basis and a yield of 4.79%. Smith & Wesson Brands’s dividend payout ratio is presently 66.67%.

Analyst Upgrades and Downgrades

SWBI has been the subject of several research analyst reports. Lake Street Capital cut Smith & Wesson Brands from a “buy” rating to a “hold” rating and cut their target price for the stock from $18.00 to $13.00 in a research report on Friday. Craig Hallum downgraded Smith & Wesson Brands from a “buy” rating to a “hold” rating and dropped their price target for the stock from $18.00 to $13.00 in a research note on Friday.

Institutional Investors Weigh In On Smith & Wesson Brands

Large investors have recently made changes to their positions in the company. Rhumbline Advisers increased its stake in Smith & Wesson Brands by 0.8% in the 2nd quarter. Rhumbline Advisers now owns 79,360 shares of the company’s stock worth $1,138,000 after acquiring an additional 655 shares during the last quarter. Cetera Investment Advisers increased its position in Smith & Wesson Brands by 1.8% in the second quarter. Cetera Investment Advisers now owns 80,650 shares of the company’s stock worth $1,157,000 after purchasing an additional 1,421 shares during the last quarter. Franklin Resources Inc. raised its stake in Smith & Wesson Brands by 5.8% during the third quarter. Franklin Resources Inc. now owns 29,249 shares of the company’s stock valued at $378,000 after purchasing an additional 1,598 shares in the last quarter. Blue Trust Inc. lifted its position in Smith & Wesson Brands by 311.0% during the second quarter. Blue Trust Inc. now owns 2,133 shares of the company’s stock valued at $31,000 after purchasing an additional 1,614 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of Smith & Wesson Brands by 17.5% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 13,111 shares of the company’s stock worth $228,000 after buying an additional 1,952 shares in the last quarter. 59.33% of the stock is owned by institutional investors.

Smith & Wesson Brands Stock Down 20.3 %

The business’s 50 day simple moving average is $13.19 and its 200 day simple moving average is $14.31. The company has a current ratio of 3.54, a quick ratio of 1.19 and a debt-to-equity ratio of 0.28. The firm has a market capitalization of $487.07 million, a PE ratio of 13.92 and a beta of 0.96.

Smith & Wesson Brands Company Profile

Smith & Wesson Brands, Inc designs, manufactures, and sells firearms worldwide. The company offers handguns, including revolvers and pistols; long guns, such as modern sporting rifles, bolt action rifles; handcuffs; suppressors; and other firearm-related products under the Smith & Wesson, M&P, and Gemtech brands.