Gun stocks rally amid nationwide protests and looting
Gun stocks skyrocketed on Monday following a weekend of police-brutality protests and looting throughout the US.
Gunmaker Smith & Wesson soared as much as 28% through the session, while Axon Enterprises, which makes the Taser stun-gun, leaped 21%. Sturm Ruger gained as much as 12.5%. All three firms cut some of their morning gains later in the day.
Demonstrations in response to the death of George Floyd escalated over the weekend, with people starting fires, looting businesses, and being involved in violent encounters with police officers. Firearm sales typically rise in the wake of civil unrest or renewed fear of federal gun-control legislation.
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Gun manufacturers have all enjoyed strong gains in recent weeks as Americans flock back to gun stores amid economic reopening. Sturm Ruger's distributor sales surged 37% through the first quarter, CEO Christopher Killoy said in a May 7 earnings call, citing "the impact of state-level restrictions and heightened concern for personal protection" related to the coronavirus pandemic.
Smith & Wesson may have also benefited from its continued spinoff from American Outdoor Brands. Monday marked the first session that the gunmaker traded under the new ticker SWBI, having previously been listed on the Nasdaq exchange with the symbol AOBC. American Outdoor Brands plans to set Smith & Wesson aside as its own publicly traded company and focus more on its outdoor products business, according to a Monday statement.
https://markets.businessinsider.com/news/stocks/gun-stocks-price-rally-nationwide-protests-looting-demonstrations-coronavirus-reopening-2020-6-1029269947
