Smith & Wesson Brands (NASDAQ:SWBI) Sets New 1-Year Low on Disappointing Earnings

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

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

Smith & Wesson Brands Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Thursday, December 19th will be paid a dividend of $0.13 per share. The ex-dividend date is Thursday, December 19th. This represents a $0.52 annualized dividend and a yield of 4.79%. Smith & Wesson Brands’s dividend payout ratio is currently 70.27%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on SWBI shares. Lake Street Capital lowered Smith & Wesson Brands from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $18.00 to $13.00 in a research note on Friday. Craig Hallum lowered Smith & Wesson Brands from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $18.00 to $13.00 in a research note on Friday.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of SWBI. Price T Rowe Associates Inc. MD raised its stake in Smith & Wesson Brands by 17.5% during the first quarter. Price T Rowe Associates Inc. MD now owns 13,111 shares of the company’s stock worth $228,000 after acquiring an additional 1,952 shares in the last quarter. Blue Trust Inc. grew its holdings in shares of Smith & Wesson Brands by 311.0% during the second quarter. Blue Trust Inc. now owns 2,133 shares of the company’s stock worth $31,000 after purchasing an additional 1,614 shares during the last quarter. Vista Investment Partners LLC bought a new stake in shares of Smith & Wesson Brands during the second quarter worth $311,000. IMA Advisory Services Inc. bought a new stake in shares of Smith & Wesson Brands during the second quarter worth $358,000. Finally, Allspring Global Investments Holdings LLC grew its holdings in shares of Smith & Wesson Brands by 68.3% during the second quarter. Allspring Global Investments Holdings LLC now owns 15,582 shares of the company’s stock worth $223,000 after purchasing an additional 6,326 shares during the last quarter. 59.33% of the stock is currently owned by institutional investors and hedge funds.

Smith & Wesson Brands Stock Down 20.3 %

The firm has a fifty day moving average price of $13.24 and a 200 day moving average price of $14.35. The company has a quick ratio of 1.19, a current ratio of 3.54 and a debt-to-equity ratio of 0.28. The company has a market cap of $487.07 million, a P/E ratio of 14.68 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.