Gun Stocks Skyrocket Following Proposed Reforms by James Fattal
Tuesday night saw an emotional President Barack Obama call for a national “sense of urgency” to limit gun violence, seeking to expand background checks for buyers.
Today has seen a backlash of opposition with Republicans vowing to undo the reform, but what does this mean for the gunmakers themselves and indeed gun sales for the immediate future?
Gun stocks skyrocketed to highest value ever
Perhaps unsurprisingly, shares in Smith & Wesson rose to their highest value ever. Its stock price skyrocketed to $26.54 setting a record for intraday value and finished on $25.86, an 11.08 percent increase and the highest the company has ever traded on Nasdaq since 1999.
“The gun stocks always go on a tear whenever the threat of gun control legislation appears, and this rally is no different,” said Jesse Cohen, Senior Editor at Investing.com.
“SWHC and RGR, which are up 180% and 89% respectively over the past 12 months, probably have more room to run higher in the months leading up to the U.S. presidential elections, as end-of-term potential for regulation will result in consumers rushing to purchase firearms they believe may soon become unavailable.”
Please see below for Smith & Wesson Holding Corporation‘s stock price since October: