Outdoor (NASDAQ:POWW) Shares Down 3.4% – Should You Sell?

Outdoor Holding Company (NASDAQ:POWW) shares dropped 3.4% on Monday . The stock traded as low as $1.68 and last traded at $1.69. Approximately 367,315 shares changed hands during trading, an increase of 6% from the average daily volume of 348,033 shares. The stock had previously closed at $1.75.

Analysts Set New Price Targets

A number of analysts have recently commented on POWW shares. Weiss Ratings reissued a “sell (d)” rating on shares of Outdoor in a research report on Monday, December 29th. Lake Street Capital boosted their price target on shares of Outdoor from $2.00 to $2.50 and gave the stock a “buy” rating in a research report on Tuesday, November 11th. Finally, Roth Mkm upgraded Outdoor from a “neutral” rating to a “buy” rating and raised their price objective for the company from $1.40 to $2.25 in a report on Wednesday, November 12th. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $2.38.

Outdoor Stock Down 3.4%

The company has a current ratio of 3.44, a quick ratio of 3.44 and a debt-to-equity ratio of 0.04. The firm’s 50 day moving average price is $1.83 and its two-hundred day moving average price is $1.57. The company has a market capitalization of $197.92 million, a price-to-earnings ratio of -8.45 and a beta of 1.14.

Outdoor (NASDAQ:POWW) last posted its quarterly earnings results on Monday, November 10th. The company reported $0.01 EPS for the quarter, topping analysts’ consensus estimates of ($0.05) by $0.06. The business had revenue of $11.98 million for the quarter, compared to the consensus estimate of $11.63 million. Sell-side analysts anticipate that Outdoor Holding Company will post 0.09 earnings per share for the current fiscal year.

Outdoor declared that its board has authorized a share repurchase program on Monday, January 5th that allows the company to buyback $15.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 7.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Outdoor

Institutional investors and hedge funds have recently modified their holdings of the stock. BNP Paribas Financial Markets raised its position in shares of Outdoor by 101.4% in the third quarter. BNP Paribas Financial Markets now owns 18,437 shares of the company’s stock valued at $27,000 after buying an additional 9,283 shares in the last quarter. Geode Capital Management LLC raised its holdings in Outdoor by 0.6% in the 2nd quarter. Geode Capital Management LLC now owns 2,134,270 shares of the company’s stock valued at $2,733,000 after acquiring an additional 11,729 shares in the last quarter. Focus Partners Wealth lifted its position in shares of Outdoor by 2.5% during the 1st quarter. Focus Partners Wealth now owns 545,742 shares of the company’s stock valued at $753,000 after acquiring an additional 13,130 shares during the period. Squarepoint Ops LLC acquired a new stake in shares of Outdoor during the 3rd quarter worth $27,000. Finally, AQR Capital Management LLC bought a new position in shares of Outdoor in the first quarter worth $29,000. 26.40% of the stock is currently owned by institutional investors and hedge funds.

Outdoor Company Profile

AMMO, Inc designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories.