Shares of Sturm Ruger & Co.
and Smith & Wesson parent American Outdoor Brands Corp.
rose Friday, putting them on track to snap relatively long streaks this year, after rival firearm maker Colt indicated it would stop manufacturing “modern sporting rifles”–Colt makes AR-15 assault rifles–for the consumer market the foreseeable future. Colt said Thursday that while it remained committed to the Second Amendment, it believes it is “good sense to follow consumer demand” and adjust to changing market dynamics. “The fact of the matter is that over the last few years, the market for modern sporting rifles has experienced significant excess manufacturing capacity,” Colt said in a statement. “Given this level of manufacturing capacity, we believe there is adequate supply for modern sporting rifles for the foreseeable future.”
Sturm Ruger’s stock gained 0.4%, after falling 5.0% over a six-session losing streak, the longest such stretch since it fell for eight straight sessions to Nov. 20, 2018. American Outdoor shares climbed 1.2%, after falling 13% over the previous five sessions, the longest losing streak since the six-day stretch ending June 3. Sturm Ruger’s stock has lost 20% year to date and American Outdoor shares have tumbled 52%, while the S&P 500
has rallied 20%.
View more information: https://www.marketwatch.com/story/gun-stocks-set-to-snap-losing-streaks-colt-indicates-it-wont-make-ar-15s-for-consumers-for-the-foreseeable-future-2019-09-20