Smith & Wesson stock tumbles after sales miss, Wedbush sees pressure for the rest of the year
Shares of Smith & Wesson Brands Inc. tumbled 11.5% in afternoon trading Thursday, after the gun maker reported a fiscal first-quarter profit that rose above expectations, but revenue came up short. After five straight quarters of record revenue, as the company benefited from COVID-19-related lockdowns, Chief Executive Mark Smith said although firearms demand remained "very strong," the company did witness "a return to normal summer seasonality" during the quarter. Analyst James Hardiman at Wedbush reiterated his neutral rating but cut his stock price target to $24 from $28. "Despite positive near-term earnings dynamics, investors have made it clear that they perceive [Smith & Wesson] to be a major pandemic beneficiary, which puts downward pressure on the stock over the course of 2021," Hardiman wrote in a note to clients. The stock has rallied 24.0% year to date, while the S&P 500 has advanced 20.6%.
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