Smith & Wesson Brands, Inc. (NASDAQ:SWBI) director Robert L. Scott sold a total of 2,000 shares of company stock on June 28, valued at approximately $29,600, according to a recent SEC filing. The transaction was executed at a price of $14.80 per share.
The sale was conducted under a 10b5-1 Sales Plan, a trading plan which allows company insiders to sell shares at a predetermined time and price, providing an affirmative defense against accusations of trading on nonpublic information. Following this transaction, Scott now directly owns 69,569 shares in the firearm manufacturer.
Smith & Wesson Brands, Inc., formerly known as American Outdoor Brands (NASDAQ:AOUT) Corp, is a leader in firearm manufacturing and design in the United States. The company has a rich history and a diverse portfolio of brands and products designed to meet a wide variety of consumer needs.
Investors and market watchers often pay close attention to insider sales as they can provide valuable insights into an insider’s perspective on the company's financial health and future prospects. However, such sales do not always indicate a lack of confidence in the company and may be motivated by a variety of personal financial considerations.
The stock transaction details are publicly available as part of the company's regulatory filings with the SEC. Interested parties can view these documents for a complete record of insider trades at Smith & Wesson Brands, Inc.
In other recent news, Smith & Wesson Brands, Inc. reported significant growth in its Q4 and FY 2024 earnings call, with a 10% rise in Q4 revenue and 12% increase in full-year revenue. This growth was accompanied by a 13% increase in unit shipments and a non-GAAP EPS of $0.45 for Q4. The successful launch of the 1854 lever action rifle and operational efficiencies were key contributors to these developments.
The firm anticipates continued demand for firearms in fiscal year 2025 and expects mid- to high-single-digit growth. However, Q1 of fiscal 2025 is predicted to witness a 10% decline from the previous year's quarter. Despite this, Smith & Wesson maintains a solid cash flow, enabling increased dividend payments and share repurchases.
CEO Mark Smith highlighted new product launches, capacity additions, and aggressive promotions as key growth drivers. These recent developments underscore Smith & Wesson's strong market position and potential for continued growth.
InvestingPro Insights
Amidst the recent insider stock sale by director Robert L. Scott, Smith & Wesson Brands, Inc. (NASDAQ:SWBI) presents a mixed financial outlook according to InvestingPro metrics and tips. While the company's stock has seen a decline over the past month with a price total return of -15.56%, it has shown resilience over the longer term, delivering a 12.44% price total return over the past year. The company's commitment to shareholder returns is evident, as it has raised its dividend for four consecutive years, boasting a current dividend yield of 3.67%.
InvestingPro data highlights a market capitalization of $646.49M and a P/E ratio of 16.43, which might suggest a reasonable valuation when considering the company's profitability over the last twelve months. However, the P/E ratio is viewed as high relative to near-term earnings growth, indicating that investors are pricing in higher earnings expectations. Despite this, Smith & Wesson's cash flows have been robust enough to sufficiently cover interest payments, and its liquid assets exceed short-term obligations, which demonstrates financial stability.
An InvestingPro Tip worth noting is that the stock's RSI suggests it is in oversold territory, which could attract investors looking for potential value opportunities. Additionally, analysts predict the company will be profitable this year, which could provide a positive outlook for potential investors. For those interested in deeper financial analysis, InvestingPro offers additional insights on Smith & Wesson Brands, Inc. with a total of 11 tips available at InvestingPro. To access these insights and more, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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