Smith & Wesson Brands (NASDAQ:SWBI) Hits New 52-Week Low on Disappointing Earnings

Smith & Wesson Brands, Inc. (NASDAQ:SWBI - Get Free Report) reached a new 52-week low on Friday following a weaker than expected earnings announcement. The company traded as low as $11.54 and last traded at $11.54, with a volume of 178298 shares. The stock had previously closed at $13.63.

The company reported $0.11 earnings per share for the quarter, missing the consensus estimate of $0.17 by ($0.06). The business had revenue of $129.70 million for the quarter, compared to the consensus estimate of $133.53 million. Smith & Wesson Brands had a return on equity of 9.20% and a net margin of 6.74%. The firm's revenue for the quarter was up 3.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.14 earnings per share.

Smith & Wesson Brands Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Thursday, December 19th will be paid a $0.13 dividend. The ex-dividend date of this dividend is Thursday, December 19th. This represents a $0.52 dividend on an annualized basis and a yield of 4.79%. Smith & Wesson Brands's dividend payout ratio is currently 66.67%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on SWBI shares. Craig Hallum lowered Smith & Wesson Brands from a "buy" rating to a "hold" rating and lowered their price target for the company from $18.00 to $13.00 in a report on Friday. Lake Street Capital lowered Smith & Wesson Brands from a "buy" rating to a "hold" rating and decreased their target price for the company from $18.00 to $13.00 in a research report on Friday.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in SWBI. Renaissance Technologies LLC raised its stake in Smith & Wesson Brands by 2.7% in the second quarter. Renaissance Technologies LLC now owns 2,798,009 shares of the company's stock worth $40,123,000 after buying an additional 72,500 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Smith & Wesson Brands by 0.7% in the 3rd quarter. Geode Capital Management LLC now owns 1,067,955 shares of the company's stock worth $13,865,000 after acquiring an additional 7,260 shares in the last quarter. American Century Companies Inc. raised its position in shares of Smith & Wesson Brands by 28.3% in the 2nd quarter. American Century Companies Inc. now owns 1,046,287 shares of the company's stock worth $15,004,000 after acquiring an additional 230,532 shares in the last quarter. Millennium Management LLC purchased a new stake in shares of Smith & Wesson Brands during the 2nd quarter worth $4,354,000. Finally, Marshall Wace LLP bought a new stake in Smith & Wesson Brands during the second quarter valued at about $4,129,000. Hedge funds and other institutional investors own 59.33% of the company's stock.

Smith & Wesson Brands Price Performance

The company has a market cap of $487.07 million, a PE ratio of 13.92 and a beta of 0.96. The company has a quick ratio of 1.19, a current ratio of 3.54 and a debt-to-equity ratio of 0.28. The firm has a 50 day simple moving average of $13.19 and a 200-day simple moving average of $14.31.

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.