What Happened?
Shares of american firearms manufacturer Smith & Wesson (NASDAQ: SWBI) jumped 3.5% in the afternoon session after the company made two positive announcements, including the grand opening of its new world-class training academy and the introduction of a new rifle model.
Smith & Wesson unveiled its new, state-of-the-art training academy located on its 236-acre headquarters campus in Maryville, Tennessee. The facility was designed to be a premier training destination, offering a variety of courses and featuring multiple ranges, including a two-story immersive shoot house. In addition to this major facility launch, the company also expanded its Model 1854 lever-action rifle series. It introduced a new version chambered in the classic .30-30 Winchester cartridge, blending a historic caliber popular with hunters with modern materials and features. These developments signaled the company's commitment to firearm safety and training, alongside continued product innovation.
After the initial pop the shares cooled down to $9.67, up 3% from previous close.
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What Is The Market Telling Us
Smith & Wesson’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 7.7% on the news that the company reported better-than-expected second-quarter 2025 results that surpassed analyst expectations for both revenue and earnings.
The firearms manufacturer posted revenue of $85.08 million, a 3.7% year-on-year decline but ahead of the consensus forecast of $79.23 million. Similarly, its adjusted loss of $0.08 per share was narrower than the analyst estimate of a $0.12 loss. Highlighting the quarter's outperformance, adjusted EBITDA came in at $8.05 million, significantly beating Wall Street’s estimates of $3.59 million. The positive investor reaction was likely driven by the strong beats on key metrics, even as the company's operating margin contracted compared to the same period last year.
Smith & Wesson is down 3.2% since the beginning of the year, and at $9.67 per share, it is trading 31.5% below its 52-week high of $14.10 from December 2024. Investors who bought $1,000 worth of Smith & Wesson’s shares 5 years ago would now be looking at an investment worth $623.15.
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