MarketWatch reports: Shares of gun makers rallied Monday, in the wake of what has been described as the deadliest mass shooting on U.S. soil.
Smith & Wesson parent American Outdoor Brands Corp.’s stock AOBC, +0.64% jumped 3.0% in afternoon trade. Volume topped 3.7 million shares, compared with the full-day average over the past 30 days of 2.1 million shares.
Sturm, Ruger & Co. Inc. shares RGR, +3.48% climbed 2.7% and Vista Outdoor Inc. shares VSTO, +2.44% ran up 1.8% toward a 6-week high.
Analysts say the regulatory environment is among the biggest drivers of demand for guns, as fears of tighter regulation have boosted gun sales and share prices in the past. Since President Trump was elected, however, fears of tighter regulations have faded and share prices have dropped. [Continue reading…]
For gun makers, this would have to be the perfect combination: increased fear of gun control boosting gun sales at a time when a Republican president and Congress means there is zero chance of increased gun control. Add to that the fact that the Trump administration is looking for ways to “turn the spigot” on overseas gun sales and there’s never been a better time for trading in deadly weapons.