What Happened?
Shares of non-lethal weapons company Byrna (NASDAQ: BYRN) fell 22.3% in the morning session after the company reported its fiscal second-quarter 2025 financial results. Although Byrna announced a record-breaking quarter with a 41% year-over-year revenue increase to $28.5 million, the stock's dip suggests a "sell the news" reaction from investors. The strong sales were driven by the launch of the new Byrna Compact Launcher (CL) and a 106% surge in dealer sales, bolstered by an expanding partnership with Sportsman's Warehouse. The company's adjusted earnings per share of $0.10 beat analyst expectations of $0.08. However, the positive results may have already been priced into the stock, which has seen a significant run-up of over 80% in the past three months.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Byrna? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Byrna’s shares are extremely volatile and have had 73 moves greater than 5% over the last year. But moves this big are rare even for Byrna and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 4.1% on the news that an analyst at Roth Capital raised their price target on the shares. The firm boosted its target to $37.00 from $33.00 while maintaining a "buy" rating on the stock. This new price target suggests a potential upside of nearly 13% from the previous closing price. The move comes ahead of the non-lethal defense technology company's fiscal second-quarter 2025 earnings report, which is scheduled for release on Thursday, July 10. Investors are anticipating strong results, with analysts forecasting revenue to grow over 40% year-over-year to around $28.5 million. This optimism follows the company's preliminary announcement in early June of record second-quarter revenues, driven by high demand for its new Byrna Compact Launcher (CL).
Byrna is down 9.9% since the beginning of the year, and at $25.51 per share, it is trading 25.4% below its 52-week high of $34.19 from February 2025. Investors who bought $1,000 worth of Byrna’s shares 5 years ago would now be looking at an investment worth $2,008.
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