Smith & Wesson Stock Plummets Despite Upbeat Earnings

SWBI is headed for its worst day since December 2022

The shares of firearm manufacturer Smith & Wesson Brands Inc (NASDAQ:SWBI) are down 11.1% at $14.59 at last glance, headed for their largest single-day percentage loss since December 2022, even after the company’s better-than-expected fiscal fourth-quarter results. CEO Mark Smith sees continued momentum as well, while management expects stronger demand amid the upcoming election season. 

All three analysts in coverage carry a “strong buy” rating on SWBI. Today, Lake Street Capital Markets raised its price target to $18, noting new products, increased handgun volumes, and strong growth in long gun sales. 

On the short sell restricted (SSR) list amid the volatility, today’s negative price action has the stock trading at its lowest levels since its early March post-earnings bull gap. Despite losing support at the $16 level, the equity is still up roughly 6% since the start of the year. 

Options traders are blasting Smith & Wesson stock today, with 5,095 calls and 3,034 puts exchanged so far — 18 times the average daily options volume already. The June 15 call and 15 put are most popular, with new positions being bought to open at the August 15 call. 

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