KeyBanc Capital Says Firearm Market Running Out Of Steam
Fox News reports …
A report from KeyBanc Capital Markets cautioned that the firearms industry may be running out of steam, sending shares of Sturm, Ruger & Co. (RGR) and Smith & Wesson (SWHC) tumbling.
Smith & Wesson, which was downgraded to underweight from hold, traded 8% lower to $11.22 Thursday. Ruger was down 3.4% at $53.15.
KeyBanc also lowered its price target for Springfield, Mass.-based Smith & Wesson to $10 as a result of recent outperformance. The stock was up 45.4% so far this year, easily outpacing the broader market.
What is the general feeling among those of you who work in gun stores?
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more of a reset perhaps back to levels before the 2012 or 2008 elections
It is still very hard to find many guns. We have seen Ruger expanding as well as Kel-tec and others. As more people become gun owners, more guns will be sold. There is still an ammo shortage which tells me people are both hoarding and shooting.
Savage is running 3 shifts and now with ATK as the new owner will be upgrading and expanding.
There was an article about Cabela's in Fortune in July, they do not see it going down. They see people shifting to different kinds of guns but they still see a majority of their sales on guns.
My local ranges are not exactly empty, in fact, they are packed
The issue with the statement from KeyBanc is what is based on? What is the analysis that makes them come to that conclusion?
I believe for many like myself, we are waiting for some of the crazy prices to come down. At the peak of the fear, even used S&W revolvers were selling above MSRP of the new revolver.
I believe with any boom cycle, there is a point where is gets soft. People need to go on vacation and spend money for back to school and then the holidays. Thing could slow down, but soon as Hillary announces she is running for POTUS or there is another shooting, it will be hard on the gas pedal once again.
Frankly, I am shocked at the amount of money people still have to purchase firearms and ammo at crazy prices.