Smith & Wesson Brands, Inc. Sees Notable Rise in Short Interest for December

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) experienced a substantial increase in short interest during December. By December 15th, short interest reached a total of 2,200,000 shares, reflecting a notable 33.3% rise from the previous month's figure of 1,650,000 shares on November 30th. This increase indicates heightened bearish sentiment among investors.

With an average daily trading volume of 589,200 shares, the current days-to-cover ratio stands at approximately 3.7 days. Presently, about 5.1% of the total shares of Smith & Wesson are reported as sold short.

Analyst Insights and Ratings Adjustments

Several financial analysts have recently assessed Smith & Wesson. On December 6th, Craig Hallum changed their recommendation for the company from a "buy" to a "hold," and reduced the price target from $18.00 to $13.00. Similarly, Lake Street Capital also downgraded the stock from "buy" to "hold," setting the same price target of $13.00.

Institutional Investment Shifts

A number of hedge funds and institutional investors have adjusted their stakes in Smith & Wesson. Rhumbline Advisers raised their investment by 0.8% in the second quarter, totaling 79,360 shares valued at $1,138,000 after adding 655 shares. Cetera Investment Advisers enhanced their position by 1.8%, resulting in ownership of 80,650 shares worth $1,157,000 after acquiring an additional 1,421 shares.

Franklin Resources Inc. increased its stake by 5.8% in the third quarter, reaching 29,249 shares valued at $378,000 after buying 1,598 more. Wedbush Securities Inc. also grew their investment by 14.0%, holding 16,250 shares valued at $233,000 after purchasing an additional 2,000 shares. Lastly, Quarry LP saw a massive increase of 2,773.0%, acquiring 2,126 shares valued at $30,000 after a substantial purchase of 2,052 shares.

Overall, hedge funds and institutional investors collectively own 59.33% of Smith & Wesson's stock.

Current Stock Performance and Market Position

On the trading floor, SWBI shares dipped by 0.9%, settling at $9.94. A total of 428,260 shares changed hands, surpassing the average volume of 453,017. The company's market capitalization is approximately $437.39 million, with a price-to-earnings ratio of 12.74 and a beta of 0.96. Over the past year, Smith & Wesson's stock has seen a low of $9.78 and a high of $18.05, indicating volatility within the market.

Recent Earnings Report

Smith & Wesson issued its latest quarterly earnings data on December 5th. The company reported earnings per share (EPS) of $0.11, falling short of analyst expectations of $0.17 by $0.06. The firm recorded a return on equity of 8.78% and a net margin of 7.00%. Revenues amounted to $129.70 million, lower than the predicted $133.53 million, yet marking a 3.8% increase from the previous year. Looking ahead, analysts expect the company to report EPS of $0.47 for the current fiscal year.

Dividend Announcement

In a recent announcement, Smith & Wesson declared a quarterly dividend payable on January 2nd. Shareholders on record as of December 19th will receive $0.13 per share. This equates to an annualized dividend of $0.52, representing a dividend yield of 5.23%. The payout ratio currently stands at 66.67%.

About Smith & Wesson Brands

Smith & Wesson Brands, Inc. specializes in the design, manufacture, and sale of firearms globally. The company offers a variety of products, including handguns such as revolvers and pistols, long guns including modern sporting rifles and bolt-action rifles, along with firearm-related accessories under well-known brands like Smith & Wesson, M&P, and Gemtech.

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