Smith & Wesson Brands Inc. (SWBI) shares are trading at lower $22.95 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $26.67.
To add more color to this target, the company’s high over the last year is $27.79 and the low is $5.41. Over the last 52 weeks, SWBI is down -17.42% while the S&P 500 is down -0.42%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SWBI reported a profit of $81.34 million. Smith & Wesson Brands Inc. also saw revenues increase to $233.64 million. In addition, SWBI has free cash flow of $81.03 million as of 04-2020. The company’s EBITDA came in at $45.88 million which compares well with its peers.
SWBI booked profit margins of -9.00%, its Return on Equity (ROE) is -14.20%, and its Return on Assets is -7.90%. All told, it is clear that, SWBI needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SWBI has a short ratio of 1.55 and outstanding shares of 55.18M.
SWBI has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -1.11. Smith & Wesson Brands Inc. SWBI also noted assets of $728.96 million at the end of the last quarter. Investors should also keep an eye on sector updates as SWBI has historically followed its peers on positive news.
All told, Smith & Wesson Brands Inc. SWBI has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SWBI represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Smith & Wesson Brands Inc. SWBI is now commanding a market cap of 1.31B and a float of 54.02M. SWBI is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SWBI stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SWBI, either long or short, and we have not been compensated for this article.