Buying Smith & Wesson Brands Inc. (SWBI) Stock Is A Smart Move Today?

Smith & Wesson Brands Inc. (NASDAQ:SWBI) finished Friday with an addition of $0.17 to close at $21.66, an upside of 0.79 percent. An average of 499,780 shares of common stock have been traded in the last five days. There was a gain of $0.53 in the past week, and it reached a new high 17 times over the past 12 months. The last 20 days have seen an average of 631,525 shares traded, while the 50-day average volume stands at 1,085,288.

SWBI stock has increased by 0.70% in the last month. The company shares reached their 1-month lowest point of $20.23 on 10/01/21. With the stock rallying to its 52-week high on 07/01/21, shares of the company touched a low of $14.50 and a high of $39.61 in 52 weeks. It has reached a new high 12 times so far this year and achieved 22.03% or $3.91 in price. In spite of this, the price is down -45.32% from the 52-week high.


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Insider Transactions

115 days have passed since Smith & Wesson Brands Inc. (SWBI) last reported insider trading activity. MONHEIT BARRY M, who is Director, most recently acquired $10,000 shares at $32.24 per share on Jun 30. In this transaction, the insider spent $322,376. Director, FURMAN JOHN B, disposed of 1,534 shares at a price of $30.17 on Jun 25. The insider now owns more than $46,281 worth of shares. Prior to that, Director MONHEIT BARRY M went on to Sale 10,000 shares at $27.65 each on Jun 21. An amount of $276,503 was transacted.

Valuation Metrics

Smith & Wesson Brands Inc. (SWBI) has a trailing price-to-earnings (P/E) ratio of 4.13, which compares with the 18.50 for the broader industry and 29.83 for the sector. In the last five years, Smith & Wesson Brands Inc.’s PE ratio has ranged between 124.04 and 3.783. The stock’s beta is 0.92. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.96, the price-to-book (PB) ratio at 3.49, and the price-to-cash flow ratio at 3.42.

Smith & Wesson Brands Inc. pays a $0.32 dividend per share annually. It offers a dividend yield of 1.48%. The company has a payout ratio of 4.30%. The company’s most recent quarterly dividend payment took place on Sep. 28, and it was $0.08 a share, without any change from last year. Its dividend has been increased for the last 1 year with the latest increase dividend $0.03 reported on Thursday June 17 2021.

The quick ratio of Smith & Wesson Brands Inc. for the three months ended July 30 was 1.60, and the current ratio was 2.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.13 and a total debt to equity ratio of 0.13 for the quarter ending July 30. Its gross profit as reported stood at $448.98 million compared to revenue of $1.06 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Smith & Wesson Brands Inc.’s return on assets was 64.30%. For the broader industry, ROE averaged 8.06 over the past year.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $76.88 million in the quarter, while revenues were grew 37.06%. The analyst consensus anticipated Smith & Wesson Brands Inc.’s latest quarter earnings to come in at $1.29 per share, but it turned out to be $1.57, a 21.70% surprise. For the quarter, EBITDA amounted to $107.35 million. Shareholders own equity worth $48.05 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Smith & Wesson Brands Inc. (SWBI) price momentum. RSI 9-day as of the close on 22 October was 56.55%, suggesting the stock is Neutral, with historical volatility in this time frame at 21.63%.

As of today, SWBI’s price is $21.54 +2.51% or $0.53 from its 5-day moving average. SWBI is currently trading +0.28% higher than its 20-day SMA and -0.78% lower than its 100-day SMA. However, the stock’s current price level is -11.99% below the SMA50 and +3.02% above the SMA200.

The stochastic %K and %D were 70.23% and 72.19%, respectively, and the average true range (ATR) was 0.58. With the 14-day stochastic at 79.17% and the average true range at 0.64, the RSI (14) stands at 52.02%. The stock has reached 0.12 on the 9-day MACD Oscillator while the 14-day reading was at 0.27.

Analyst Ratings

Craig Hallum reiterated its a Hold rating on Smith & Wesson Brands Inc. (NASDAQ: SWBI), but raised their price target to $22, indicating a potential price increase of 1.55% for the stock. The consensus rating for Smith & Wesson Brands Inc. (SWBI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SWBI, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is SWBI’s price target for the next 12 months?

Analysts predict a range of price targets between $24.00 and $43.00, with a median target of $29.00. Taking a look at these predictions, the average price target given by analysts for Smith & Wesson Brands Inc. (SWBI) stock is $31.80.

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