Smith & Wesson Brands (NASDAQ:SWBI) Sets New 12-Month Low Following Weak Earnings

Shares of Smith & Wesson Brands, Inc. (NASDAQ:SWBI) reached a new 52-week low during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $11.54 and last traded at $11.54, with a volume of 178298 shares changing hands. 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). Smith & Wesson Brands had a net margin of 6.74% and a return on equity of 9.20%. The business 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 company posted $0.14 EPS. The company’s quarterly revenue was up 3.8% compared to the same quarter last year.

Smith & Wesson Brands Dividend Announcement

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

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on SWBI shares. Craig Hallum lowered shares of Smith & Wesson Brands from a “buy” rating to a “hold” rating and decreased their price objective for the company from $18.00 to $13.00 in a report on Friday. Lake Street Capital lowered shares of Smith & Wesson Brands from a “buy” rating to a “hold” rating and reduced their target price for the stock from $18.00 to $13.00 in a research report on Friday.

Hedge Funds Weigh In On Smith & Wesson Brands

Institutional investors have recently made changes to their positions in the company. Millennium Management LLC purchased a new stake in Smith & Wesson Brands in the second quarter worth about $4,354,000. Marshall Wace LLP purchased a new stake in shares of Smith & Wesson Brands in the 2nd quarter worth approximately $4,129,000. American Century Companies Inc. lifted its position in shares of Smith & Wesson Brands by 28.3% in the 2nd quarter. American Century Companies Inc. now owns 1,046,287 shares of the company’s stock worth $15,004,000 after purchasing an additional 230,532 shares during the period. Cubist Systematic Strategies LLC boosted its stake in shares of Smith & Wesson Brands by 1,023.1% during the second quarter. Cubist Systematic Strategies LLC now owns 134,086 shares of the company’s stock valued at $1,923,000 after purchasing an additional 122,147 shares in the last quarter. Finally, Renaissance Technologies LLC increased its holdings in Smith & Wesson Brands by 2.7% during the second quarter. Renaissance Technologies LLC now owns 2,798,009 shares of the company’s stock valued at $40,123,000 after buying an additional 72,500 shares during the period. Hedge funds and other institutional investors own 59.33% of the company’s stock.

Smith & Wesson Brands Stock Down 20.3 %

The business’s 50 day moving average is $13.19 and its 200 day moving average is $14.31. 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 13.92 and a beta of 0.96.

About Smith & Wesson Brands

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.