Lake Street Capital Increases Smith & Wesson Brands (NASDAQ:SWBI) Price Target to $14.00

Smith & Wesson Brands (NASDAQ:SWBI) had its target price hoisted by Lake Street Capital from $11.00 to $14.00 in a report released on Friday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Lake Street Capital’s price target would suggest a potential upside of 0.07% from the stock’s current price.

A number of other equities research analysts have also issued reports on SWBI. Wall Street Zen lowered Smith & Wesson Brands from a “buy” rating to a “hold” rating in a research report on Saturday, February 28th. Weiss Ratings reissued a “hold (c)” rating on shares of Smith & Wesson Brands in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Smith & Wesson Brands presently has an average rating of “Hold” and an average target price of $14.00.

Smith & Wesson Brands Stock Up 18.7%

SWBI stock opened at $13.99 on Friday. The firm has a market cap of $622.42 million, a PE ratio of 60.83 and a beta of 1.04. Smith & Wesson Brands has a 12 month low of $7.73 and a 12 month high of $13.99. The company has a debt-to-equity ratio of 0.34, a current ratio of 4.98 and a quick ratio of 1.58. The firm has a 50 day simple moving average of $11.21 and a 200 day simple moving average of $10.02.

Smith & Wesson Brands (NASDAQ:SWBI) last posted its quarterly earnings results on Thursday, March 5th. The company reported $0.08 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.03. The company had revenue of $135.71 million for the quarter, compared to analysts’ expectations of $125.59 million. Smith & Wesson Brands had a return on equity of 3.06% and a net margin of 2.24%.The firm’s revenue was up 17.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.02 earnings per share. Equities research analysts forecast that Smith & Wesson Brands will post 0.47 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of SWBI. Charles Schwab Investment Management Inc. raised its position in Smith & Wesson Brands by 25.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,311,503 shares of the company’s stock valued at $12,945,000 after buying an additional 265,370 shares during the period. Geode Capital Management LLC boosted its position in Smith & Wesson Brands by 0.4% during the 2nd quarter. Geode Capital Management LLC now owns 1,075,354 shares of the company’s stock worth $9,336,000 after acquiring an additional 3,882 shares during the period. Millennium Management LLC purchased a new position in Smith & Wesson Brands during the 3rd quarter valued at about $7,558,000. Two Sigma Investments LP increased its holdings in shares of Smith & Wesson Brands by 166.1% in the 3rd quarter. Two Sigma Investments LP now owns 753,964 shares of the company’s stock valued at $7,411,000 after purchasing an additional 470,602 shares during the period. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Smith & Wesson Brands by 41.4% in the 1st quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company’s stock valued at $6,642,000 after purchasing an additional 208,739 shares during the period. Hedge funds and other institutional investors own 59.33% of the company’s stock.

Smith & Wesson Brands News Summary

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

Smith & Wesson Brands Company Profile

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.