June 20--Suddenly, it seems as if shares of Smith & Wesson have a target on their back. The stock price of the gunmaker plunged 12 percent in premarket trading today as gun sales seem to be getting shot down, CNN Money reported.
Whether this means Americans are already armed to the teeth or simply slowing down their firearms stock-piling is anyone's guess.
For the fourth quarter, Smith & Wesson reported a decline in net sales of more than 4 percent to $170 million and a 13 percent drop in income from continuing operations to about $25 million, CNN Money reported.
Thus far, the Obama Administration has been a big boon to the gun industry, as Second Amendment advocates fearing new gun regulations rushed to arm themselves.
Now, this firearms sales firestorm is cooling off, especially among military-style semi-automatic rifles, the most likely to be regulated.
But those gun control efforts have largely fizzled. Now, so have those gun sales, analysts said.
Still, Smith & Wesson is seeing nice growth in handgun sales, which CNN Money says is buoyed by growing consumer interest in self-defense and concealed carry.
"Compact guns and polymer guns are selling really well," said Brian Ruttenbur, gun analyst for CRT Capital told CNN Money. "They are ramping up production dramatically."
Ruttenbur added that Smith & Wesson's latest line of M&P compact pistols is so popular that supply is running thin.
"You can't find an M&P gun on the shelf," he said. "This is their competitor to Glock."
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Original headline: Smith & Wesson sales take hit as Americans buy fewer guns: Good thing?
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