Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Sees Large Decrease in Short Interest

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) saw a significant decline in short interest in the month of December. As of December 31st, there was short interest totalling 1,420,000 shares, a decline of 35.5% from the December 15th total of 2,200,000 shares. Based on an average daily trading volume, of 619,100 shares, the days-to-cover ratio is currently 2.3 days. Currently, 3.3% of the company’s shares are short sold.

Smith & Wesson Brands Stock Up 1.5 %

NASDAQ:SWBI traded up $0.15 during trading hours on Thursday, reaching $10.31. 335,841 shares of the company traded hands, compared to its average volume of 414,064. The company has a current ratio of 3.97, a quick ratio of 1.43 and a debt-to-equity ratio of 0.36. The business’s 50-day moving average price is $11.62 and its two-hundred day moving average price is $13.21. Smith & Wesson Brands has a 1 year low of $9.68 and a 1 year high of $18.05. The stock has a market capitalization of $453.64 million, a P/E ratio of 13.22 and a beta of 1.02.

Smith & Wesson Brands (NASDAQ:SWBI) last posted its quarterly earnings results on Thursday, December 5th. The company reported $0.11 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.06). Smith & Wesson Brands had a return on equity of 8.78% and a net margin of 7.00%. The company had revenue of $129.70 million during the quarter, compared to analysts’ expectations of $133.53 million. During the same period in the prior year, the firm earned $0.14 EPS. Smith & Wesson Brands’s revenue for the quarter was up 3.8% compared to the same quarter last year. Analysts predict that Smith & Wesson Brands will post 0.47 earnings per share for the current year.

Smith & Wesson Brands Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, January 2nd. Investors of record on Thursday, December 19th were given a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 5.04%. The ex-dividend date was Thursday, December 19th. Smith & Wesson Brands’s dividend payout ratio (DPR) is currently 66.67%.

Hedge Funds Weigh In On Smith & Wesson Brands

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SWBI. Quarry LP increased its holdings in shares of Smith & Wesson Brands by 2,773.0% in the 2nd quarter. Quarry LP now owns 2,126 shares of the company’s stock worth $30,000 after purchasing an additional 2,052 shares in the last quarter. International Assets Investment Management LLC boosted its position in shares of Smith & Wesson Brands by 1,198.2% during the third quarter. International Assets Investment Management LLC now owns 2,908 shares of the company’s stock valued at $38,000 after buying an additional 2,684 shares during the last quarter. NBC Securities Inc. increased its holdings in Smith & Wesson Brands by 823.8% in the 3rd quarter. NBC Securities Inc. now owns 4,000 shares of the company’s stock worth $51,000 after buying an additional 3,567 shares in the last quarter. Copeland Capital Management LLC purchased a new position in Smith & Wesson Brands in the 3rd quarter worth about $52,000. Finally, Point72 DIFC Ltd bought a new position in Smith & Wesson Brands during the 2nd quarter valued at about $59,000. 59.33% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of research firms have recently weighed in on SWBI. Craig Hallum downgraded 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, December 6th. Lake Street Capital cut shares of Smith & Wesson Brands from a “buy” rating to a “hold” rating and cut their price objective for the stock from $18.00 to $13.00 in a report on Friday, December 6th.

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.