Smith & Wesson Brands (NASDAQ:SWBI) Hits New 12-Month High on Strong Earnings

Smith & Wesson Brands, Inc. (NASDAQ:SWBI)’s share price hit a new 52-week high during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $12.66 and last traded at $12.66, with a volume of 79580 shares. The stock had previously closed at $11.79.

The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.05 by $0.03. Smith & Wesson Brands had a return on equity of 3.06% and a net margin of 2.24%.The firm had revenue of $135.71 million for the quarter, compared to analyst estimates of $125.59 million. During the same period in the previous year, the company posted $0.02 earnings per share. The business’s revenue was up 17.1% on a year-over-year basis.

Smith & Wesson Brands News Roundup

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Q3 results beat estimates — Smith & Wesson reported EPS of $0.08 vs. consensus $0.05 and revenue of $135.7M vs. $125.6M, with net sales up 17.1% year-over-year; this topline and EPS beat is the primary catalyst for the stock move. Smith & Wesson Q3 Results
• Positive Sentiment: Raise to fiscal Q4 revenue guidance — management updated Q4 revenue guidance to roughly $154.9M–$157.7M versus a consensus of ~$142.2M, signaling better-than-expected near-term demand. Earnings Transcript / Guidance
• Positive Sentiment: Analyst upgrade — Lake Street Capital raised its price target from $11 to $14 and set a Buy rating, providing incremental buy-side validation. Benzinga
• Neutral Sentiment: Full earnings call / transcripts are available for details on product demand, margin outlook and working-capital commentary — useful for drilling into sustainability of the sales beat. Seeking Alpha Call Transcript
• Neutral Sentiment: Press and coverage pieces explain the share move and investor reaction; read for additional color on market response. MSN Coverage
• Negative Sentiment: Valuation and margin context — the stock trades at a high P/E (~73.6) while reported net margin is modest (~1.9%); investors should weigh elevated valuation vs. growth and guidance. No link

Analysts Set New Price Targets

A number of brokerages have recently commented on SWBI. Lake Street Capital increased their target price on shares of Smith & Wesson Brands from $11.00 to $14.00 and gave the company a “buy” rating in a research report on Friday. Wall Street Zen lowered shares of Smith & Wesson Brands from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Smith & Wesson Brands in a research note on Monday, December 29th. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $14.00.

Hedge Funds Weigh In On Smith & Wesson Brands

A number of hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd acquired a new position in Smith & Wesson Brands during the fourth quarter worth $30,000. Tower Research Capital LLC TRC grew its stake in shares of Smith & Wesson Brands by 205.9% in the second quarter. Tower Research Capital LLC TRC now owns 6,240 shares of the company’s stock valued at $54,000 after buying an additional 4,200 shares in the last quarter. Jones Financial Companies Lllp grew its stake in shares of Smith & Wesson Brands by 42.0% in the third quarter. Jones Financial Companies Lllp now owns 10,631 shares of the company’s stock valued at $103,000 after buying an additional 3,142 shares in the last quarter. Significant Wealth Partners LLC purchased a new stake in shares of Smith & Wesson Brands in the 3rd quarter valued at $106,000. Finally, Public Employees Retirement Association of Colorado purchased a new stake in shares of Smith & Wesson Brands in the 4th quarter valued at $107,000. Hedge funds and other institutional investors own 59.33% of the company’s stock.

Smith & Wesson Brands Trading Up 18.7%

The company has a 50 day moving average of $11.21 and a 200-day moving average of $10.01. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.58 and a current ratio of 4.98. The stock has a market cap of $622.42 million, a price-to-earnings ratio of 60.83 and a beta of 1.04.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.