Gun maker Sturm Ruger stock rises amid increased demand for firearms - Trade Stocks

Gun maker Sturm Ruger stock rises amid increased demand for firearms

By Wed, May 6, 2020

Gun manufacturer Sturm Ruger & Co. Inc. shares rose 4.7% in extended trading Wednesday after the company reported a spike in distributor sales to retailers amid increased demand for guns in the first quarter, as the coronavirus spread across the world.

Sturm Ruger RGR, +3.67% Chief Executive Officer Christopher Killoy said the company saw a 37% spike in sales from distributors to retailers in the first quarter, compared with a year ago. The gun maker reported first-quarter net income of $15.3 million, which amounts to 87 cents a share, compared with net income of $13 million, or 74 cents a share, a year ago. Revenue rose to $123.6 million from $114 million in the year-ago quarter.

The company does not have enough analyst coverage to form reliable consensus estimates, according to FactSet.

Background checks required to buy firearms administered by the Federal Bureau of Investigation increased by just over 1 million in March to 3,740,688, compared with a year ago. April saw an increase of roughly 575,000 to 2,911,129 checks, according to data collected by the FBI.

As lockdown orders began to take force in March, there were multiple reports of long lines outside of gun shops in California and elsewhere amid coronavirus fears.

Sturm Ruger stock has fallen 4.6% in the past year, as the S&P 500 index SPX, -0.69% dropped 2.2%.

About the Author

Trade Stocks was specifically created as a resource that traders and investors can rely on for accurate and timely financial news and insights. Our team of industry experts brings you the into you need when you need it. That’s why hundreds of thousands of traders and investors trust us to provide them with the financial education, support, and resources that they can count on to help them move closer to their financial goals.