Smith & Wesson is on a roll, and in more ways than one. The historic gun maker announced last month that it would move its headquarters from Springfield, Mass. To Blount County, Tennessee, bringing 750 jobs and becoming the county’s eighth largest employer. The recruitment of one of the world’s largest arms manufacturers was seen as a regional and national economic victory for the voluntary state, which is already home to twenty producers of small arms and ammunition.
The company, which remains one of the largest manufacturers and designers of firearms in the world, had been based in Massachusetts since its founding in 1852. Now, due to the political climate in Bay State, it is relocating its Springfield distribution, assembly and plastic injection molding operations, as well as its corporate headquarters. It is also closing facilities in Connecticut and Missouri as part of the move, while part of its Massachusetts facilities will remain open. Employees at other facilities will be able to relocate with financial and logistical assistance from Smith & Wesson.
The news of the relocation came as the company reported a very strong year as gun sales continued to hit record highs. Even though 2021 has seen a slight decline in gun sales in recent months, it is on track to potentially overtake 2020 overall and will certainly overtake 2019 and all previous years.
In the most recent quarter, Smith & Wesson reported net sales of $ 274.6 million, an increase of 19.5% from the same quarter last year. It also exceeded $ 1.1 billion in revenue for the first time in fiscal 2021 and shipped 2.6 million firearms.
This is why investors remain rather bullish on Smith & Wesson (NASDAQ: SWBI).
Zacks Equity Research reported Thursday: “Prior to today’s trading, shares of the gunmaker had lost 2.23% over the past month. This was less than the 2.59% loss of the consumer discretionary sector and was less than the 2.57% gain of the S&P 500 during this period. SWBI will seek to demonstrate its strength as the next publication of its results approaches. ”
Insider Monkey / Yahoo! Finance also reported that there was still a “smart money sentiment” surrounding Smith & Wesson Brands, Inc., and that the SWBI was in the portfolios of twenty-one hedge funds at the end of the second quarter of this year. The all-time high for this statistic is twenty-four.
“At the end of the second quarter, a total of 21 of the hedge funds tracked by Insider Monkey were long on this stock, a change of 17% from the previous quarter,” GLG Partners’ Noam Gottesman told Insider Monkey. “By comparison, 24 hedge funds held stocks or bullish call options in SWBI a year ago. With the capital of hedge funds changing hands, there is a “top tier” of notable hedge fund managers who were significantly increasing their holdings (or already accumulating large positions).
Even if investors become less bullish on the historic brand, there is little reason to suggest that American consumers will shy away from Smith & Wesson anytime soon. The company’s commitment to the Second Amendment appears strong, and rather than stop making a popular product due to the political climate in one state, it has found a new home where it has been welcomed with open arms.
Peter Suciu is a Michigan writer who has contributed to over four dozen magazines, newspapers, and websites. He writes regularly on military small arms and is the author of several books on military hairstyles, including A gallery of military hairstyles, which is available on Amazon.com.