Smith & Wesson Brands Inc. (SWBI) shares are trading at higher $18.26 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $24.50.
To add more color to this target, the company’s high over the last year is $21.34 and the low is $4.16. Over the last 52 weeks, SWBI is up 295.58% while the S&P 500 is up 19.44%. 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.
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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 1.14 and outstanding shares of 55.18M.
SWBI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.97 million and more growth is possible in the weeks ahead. 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 1.06B 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.