Smith & Wesson Brands (NASDAQ:SWBI) Sees Unusually-High Trading Volume Following Dividend Announcement

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) saw strong trading volume on Monday following a dividend announcement from the company. 1,062,785 shares were traded during mid-day trading, an increase of 148% from the previous session’s volume of 428,618 shares.The stock last traded at $11.22 and had previously closed at $10.86.

The newly announced dividend which will be paid on Thursday, January 2nd. Shareholders of record on Thursday, December 19th will be issued a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a dividend yield of 4.59%. The ex-dividend date is Thursday, December 19th. Smith & Wesson Brands’s payout ratio is 66.67%.

Wall Street Analyst Weigh In

SWBI has been the subject of several research reports. Lake Street Capital downgraded Smith & Wesson Brands from a “buy” rating to a “hold” rating and reduced their target price for the company from $18.00 to $13.00 in a report on Friday. Craig Hallum cut Smith & Wesson Brands from a “buy” rating to a “hold” rating and reduced their price objective for the company from $18.00 to $13.00 in a research note on Friday.

Smith & Wesson Brands Stock Performance

The stock has a market cap of $507.72 million, a price-to-earnings ratio of 14.56 and a beta of 0.96. The stock’s 50 day moving average is $13.19 and its two-hundred day moving average is $14.29. The company has a current ratio of 3.97, a quick ratio of 1.43 and a debt-to-equity ratio of 0.36.

Smith & Wesson Brands (NASDAQ:SWBI) last posted its quarterly earnings data on Thursday, December 5th. The company reported $0.11 EPS for the quarter, missing the consensus estimate of $0.17 by ($0.06). Smith & Wesson Brands had a net margin of 7.00% and a return on equity of 8.78%. The company had revenue of $129.70 million for the quarter, compared to analysts’ expectations of $133.53 million. During the same period in the prior year, the company earned $0.14 earnings per share. The firm’s revenue was up 3.8% on a year-over-year basis. Analysts anticipate that Smith & Wesson Brands, Inc. will post 0.73 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Smith & Wesson Brands

A number of hedge funds have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD boosted its stake in shares of Smith & Wesson Brands by 17.5% in the first quarter. Price T Rowe Associates Inc. MD now owns 13,111 shares of the company’s stock valued at $228,000 after buying an additional 1,952 shares in the last quarter. Blue Trust Inc. increased its position in shares of Smith & Wesson Brands by 311.0% in the second quarter. Blue Trust Inc. now owns 2,133 shares of the company’s stock valued at $31,000 after buying an additional 1,614 shares in the last quarter. Vista Investment Partners LLC acquired a new position in Smith & Wesson Brands during the second quarter worth about $311,000. IMA Advisory Services Inc. acquired a new position in shares of Smith & Wesson Brands during the 2nd quarter worth approximately $358,000. Finally, Allspring Global Investments Holdings LLC grew its holdings in Smith & Wesson Brands by 68.3% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 15,582 shares of the company’s stock valued at $223,000 after buying an additional 6,326 shares during the last quarter. Institutional investors and hedge funds own 59.33% of the company’s stock.

Smith & Wesson Brands Company Profile

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.