Smith & Wesson Brands Inc. (SWBI) shares are trading at lower $15.51 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $23.25.
To add more color to this target, the company’s high over the last year is $22.40 and the low is $4.16. Over the last 52 weeks, SWBI is up 238.82% while the S&P 500 is up 9.05%. 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 $116.77 million. Smith & Wesson Brands Inc. also saw revenues increase to $277.96 million. In addition, SWBI has free cash flow of $76.13 million as of 07-2020. The company’s EBITDA came in at $78.34 million which compares well with its peers.
SWBI booked profit margins of -1.30%, its Return on Equity (ROE) is -2.50%, and its Return on Assets is -1.40%. 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 1.24 and outstanding shares of 55.49M.
SWBI has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.55 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.21. Smith & Wesson Brands Inc. SWBI also noted assets of $658.17 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 891.67M and a float of 54.39M. 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.