Stock Traders Buy High Volume of Smith & Wesson Brands Call Options (NASDAQ:SWBI)

Smith & Wesson Brands, Inc. (NASDAQ:SWBI) was the recipient of unusually large options trading activity on Thursday. Investors acquired 2,778 call options on the company. This is an increase of 298% compared to the typical volume of 698 call options.

Smith & Wesson Brands Price Performance

Shares of SWBI stock traded up $2.42 during trading hours on Thursday, hitting $16.15. The company’s stock had a trading volume of 1,872,934 shares, compared to its average volume of 583,704. The business has a fifty day moving average of $14.91 and a 200-day moving average of $12.82. Smith & Wesson Brands has a twelve month low of $7.73 and a twelve month high of $17.56. The company has a current ratio of 4.50, a quick ratio of 1.48 and a debt-to-equity ratio of 0.29. The stock has a market cap of $718.29 million, a price-to-earnings ratio of 71.73 and a beta of 0.90.

Smith & Wesson Brands (NASDAQ:SWBI) last released its quarterly earnings data on Wednesday, June 17th. The company reported $0.36 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.13. Smith & Wesson Brands had a net margin of 2.24% and a return on equity of 3.07%. The firm had revenue of $178.39 million during the quarter, compared to the consensus estimate of $155.27 million. During the same quarter in the previous year, the company posted $0.20 earnings per share. The firm’s revenue was up 26.7% on a year-over-year basis. As a group, equities research analysts anticipate that Smith & Wesson Brands will post 0.27 EPS for the current year.

Smith & Wesson Brands Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st will be given a $0.13 dividend. This represents a $0.52 dividend on an annualized basis and a yield of 3.2%. The ex-dividend date of this dividend is Wednesday, July 1st. Smith & Wesson Brands’s dividend payout ratio (DPR) is currently 226.09%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on SWBI shares. Wall Street Zen raised Smith & Wesson Brands from a “hold” rating to a “strong-buy” rating in a research note on Sunday, March 8th. Weiss Ratings reiterated a “hold (c)” rating on shares of Smith & Wesson Brands in a research report on Friday, March 27th. Finally, Lake Street Capital upped their target price on Smith & Wesson Brands from $14.00 to $16.50 and gave the company a “buy” rating in a report on Thursday. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $16.50.

Institutional Trading of Smith & Wesson Brands

A number of institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP boosted its holdings in shares of Smith & Wesson Brands by 5.8% during the first quarter. Dimensional Fund Advisors LP now owns 2,616,319 shares of the company’s stock worth $37,492,000 after purchasing an additional 143,069 shares during the period. Charles Schwab Investment Management Inc. grew its stake in shares of Smith & Wesson Brands by 25.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,311,503 shares of the company’s stock worth $12,945,000 after buying an additional 265,370 shares in the last quarter. Millennium Management LLC bought a new stake in Smith & Wesson Brands in the third quarter worth about $7,558,000. Two Sigma Investments LP increased its holdings in Smith & Wesson Brands by 166.1% during the third quarter. Two Sigma Investments LP now owns 753,964 shares of the company’s stock valued at $7,411,000 after buying an additional 470,602 shares during the period. Finally, Goldman Sachs Group Inc. raised its position in Smith & Wesson Brands by 41.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 712,708 shares of the company’s stock worth $6,642,000 after buying an additional 208,739 shares during the last quarter. 59.33% of the stock is currently owned by hedge funds and other institutional investors.

Key Smith & Wesson Brands News

Here are the key news stories impacting Smith & Wesson Brands this week:

• Positive Sentiment: Lake Street Capital raised its price target on Smith & Wesson Brands to $16.50 from $14.00 and reiterated a buy rating, implying additional upside from the current share price. Benzinga article
• Positive Sentiment: Smith & Wesson reported fiscal Q4 EPS of $0.36 versus $0.23 expected, and revenue of $178.4 million versus $155.3 million expected, driven by stronger handgun sales and improving profitability. Earnings report
• Positive Sentiment: The company declared a quarterly dividend of $0.13 per share, signaling ongoing cash generation and returning capital to shareholders. Seeking Alpha article
• Positive Sentiment: Management said it expects fiscal 2027 revenue to grow in the mid-single digits and plans about $20 million in incremental Springfield capex, which suggests confidence in future demand and capacity expansion. MSN article
• Neutral Sentiment: Investors also have the Q4 2026 earnings call transcript and press release to review for more detail on margins, demand trends, and management’s outlook. Newsfile release
• Negative Sentiment: A prior downgrade note had argued the stock’s recent run-up left less near-term upside and pointed to longer-term industry softness, including declining background checks and weaker long-gun demand. Seeking Alpha article

About Smith & Wesson Brands

Smith & Wesson Brands, Inc is a leading American manufacturer of firearms and related products, designing, producing and marketing a broad array of handguns, long guns and shooting accessories. The company’s portfolio includes revolvers, semi-automatic pistols and rifles under well-known brands such as M&P® (Military & Police) and Performance Center®, which are used by military, law enforcement, commercial and private customers. In addition to complete firearms, Smith & Wesson offers suppressors, optics mounts, holsters and other shooting accessories to support a full spectrum of professional and recreational shooting activities.

Founded in 1852 by Horace Smith and Daniel B.