Smith & Wesson Holding Corporation (NASDAQ:SWHC) announced today that it has expanded its common stock repurchases. The company’s board authorized $15 million worth of stock repurchases through the end of June 2013. That’s in addition to the $20 million in stock repurchases that the board authorized for the same time frame earlier this month. Smith & Wesson Holding Corporation (NASDAQ:SWHC) has already bought back that amount of stock.
According to a statement released by Smith & Wesson, the “amount and timing” of the company’s stock repurchases will depend on various factors like “price, trading volume, general market conditions, legal requirements and other factors.” All shares of the stock that are repurchased during this new round of buybacks will be considered to be “issued, but not outstanding.” The company’s statement said it expects to pay for this round of buybacks with the cash it currently has on hand and its working capital.
Smith & Wesson has enjoyed boosted earnings in recent months. As reported earlier this month, the company reported increased greatly earnings for its second fiscal quarter, most likely because of the election. Net sales during the quarter climbed 48 percent up to $136.6 million, and analysts believe it was because President Barack Obama was reelected. The sales of handguns for both Smith & Wesson Holding Corporation (NASDAQ:SWHC) and its main competitor Sturm, Ruger & Company (NYSE:RGR) surged in 2008 right after President Obama was elected for his first term. Analysts say more people probably purchased handguns because of new restrictions on them that could be put into place by the Obama administration.
Shares of Smith & Wesson Holding Corporation traded mostly flat on Wednesday but increased 3 percent in pre-market trading today.
