Smith & Wesson Brands, Inc. (SWBI)

Several events have impacted SWBI's stock price in the past six months. In the first fiscal quarter of 2026, Smith & Wesson Brands reported a non-GAAP EPS loss of -$0.08 and net sales of $85.1 million. In the second fiscal quarter of 2026, the company announced earnings of $0.04 EPS and quarterly revenue of $124.67 million. Smith & Wesson Brands declared a quarterly dividend of $0.13 per share, payable on January 2, 2026. The board approved a new $50 million share repurchase program. The company reported softer-than-anticipated overall firearms demand during its fiscal first quarter, attributing a loss to slower-than-usual summer seasonality trends.

Demand for Smith & Wesson Brands' products exhibits seasonality. The company typically experiences a seasonal slow period during the summer months. Demand is anticipated to rebound and strengthen during the fall hunting season and leading up to election cycles, such as the 2024 election, which is expected to provide a tailwind for the firearms market. The company plans to build inventory in preparation for these busier fall months.

Smith & Wesson Brands, Inc. (SWBI) is a leading American manufacturer and designer of firearms and related products, operating primarily in the Consumer Discretionary sector, specifically in the Leisure Products industry. The company's product portfolio includes handguns, long guns, handcuffs, suppressors, and firearm-related accessories, catering to a diverse customer base, including firearm enthusiasts, collectors, hunters, sportsmen, competitive shooters, individuals seeking home and personal protection, and military and law enforcement agencies globally. Beyond product sales, Smith & Wesson also offers manufacturing services such as forging, heat treating, tooling, rapid prototyping, finishing, plating, machining, and custom plastic injection molding.

Smith & Wesson Brands, Inc. maintains manufacturing facilities in the United States, with locations in Springfield, Massachusetts; Houlton, Maine; Deep River, Connecticut; and Maryville, Tennessee. The company serves a global market through a network of distributors and dealers, reaching customers in North America, Europe, Asia, and the Middle East. The majority of its income is generated from the U.S. market, particularly from its handgun products.

Smith & Wesson Brands maintains a strong brand heritage and trust, with new product innovation being a critical revenue driver. The company has emphasized its commitment to innovation to keep its product line fresh and maintain its leadership position. The firearms industry itself is often subject to political and ethical debates, which can indirectly affect the perception of companies within it.

Institutional investors hold a significant portion of Smith & Wesson Brands' stock, with 59.33% held by institutions. Major institutional owners include BlackRock, Inc., Vanguard Group Inc, Dimensional Fund Advisors Lp, Renaissance Technologies Llc, Geode Capital Management, Llc, Charles Schwab Investment Management Inc, State Street Corp, and Two Sigma Advisers, Lp. Insider ownership is relatively low, with only 1.62% of the stock held by insiders. Barclays PLC is noted as a significant individual/insider holder, owning 8.19 million shares, representing 18.41% of the company. The general public holds a 31% stake in the company.