Sturm, Ruger & Company, Inc. (NYSE:RGR) Posts Earnings Results, Beats Estimates By $0.10 EPS

Sturm, Ruger & Company, Inc. (NYSE:RGR) issued its quarterly earnings results on Wednesday. The company reported $0.52 EPS for the quarter, beating the consensus estimate of $0.42 by $0.10, FiscalAI reports. Sturm, Ruger & Company, Inc. had a net margin of 2.11% and a return on equity of 6.62%. The company had revenue of $158.06 million for the quarter, compared to the consensus estimate of $128.54 million. During the same period in the prior year, the firm posted $0.41 EPS. The firm’s revenue was up 19.3% compared to the same quarter last year.

Here are the key takeaways from Sturm, Ruger & Company, Inc.’s conference call:

• Q2 results improved significantly: Net sales rose 19% year over year to $158 million, adjusted EBITDA margin expanded to 10.5%, and adjusted EPS increased to $0.52 from $0.41. Operating cash flow exceeded $17 million, while the company maintained its $0.21 quarterly dividend.
• Management reported a fifth consecutive quarter of sequential and year-over-year sales growth, with estimated distributor sell-through up 19% compared with approximately 5% growth in adjusted NICS. Retail demand remained strong even as distributor inventories declined year over year, suggesting demand is being driven by consumers rather than channel restocking.
• Manufacturing execution improved during the quarter, increasing throughput and allowing Ruger to begin rebuilding finished-goods inventory while maintaining quality and inventory discipline. The company is also evaluating additional shifts, employee cross-training, bottleneck reduction, and factory-capacity redeployment to address elevated back orders.
• Ruger formally established the Ruger Business System, a companywide framework intended to improve accountability, operational consistency, and continuous improvement in support of its long-term Ruger 2030 strategy.
• Some new-product launches were postponed in the short term so production capacity could remain focused on high-demand existing products, particularly Gen2 rifle calibers ahead of hunting season. Gen2 rifles also rolled out of the company’s two-year “new product” tracking period, which may reduce reported new-product contribution temporarily.

Sturm, Ruger & Company, Inc. Price Performance

NYSE RGR traded down $2.18 during trading hours on Friday, hitting $36.88. 35,772 shares of the company’s stock traded hands, compared to its average volume of 155,646. The firm’s 50-day moving average is $38.74 and its 200-day moving average is $39.09. The company has a market capitalization of $587.87 million, a PE ratio of 49.40 and a beta of 0.17. Sturm, Ruger & Company, Inc. has a 52-week low of $28.33 and a 52-week high of $48.21.

Sturm, Ruger & Company, Inc. Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be paid a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, August 14th. This represents a $0.84 annualized dividend and a yield of 2.3%. This is a boost from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.11. Sturm, Ruger & Company, Inc.’s dividend payout ratio is currently -60.27%.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Zacks Research raised Sturm, Ruger & Company, Inc. from a “strong sell” rating to a “hold” rating in a research report on Monday, May 4th. Wall Street Zen upgraded Sturm, Ruger & Company, Inc. from a “hold” rating to a “buy” rating in a report on Sunday, July 12th. Weiss Ratings restated a “sell (d+)” rating on shares of Sturm, Ruger & Company, Inc. in a research note on Wednesday, June 24th. Finally, Lake Street Capital reissued a “buy” rating and issued a $46.00 price objective on shares of Sturm, Ruger & Company, Inc. in a report on Thursday, May 7th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Sturm, Ruger & Company, Inc. currently has a consensus rating of “Hold” and a consensus target price of $46.00.

Insider Buying and Selling at Sturm, Ruger & Company, Inc.

In other news, Director Phillip Widman purchased 5,000 shares of Sturm, Ruger & Company, Inc. stock in a transaction dated Tuesday, May 12th. The shares were purchased at an average price of $38.00 per share, with a total value of $190,000.00. Following the transaction, the director owned 45,208 shares in the company, valued at $1,717,904. This represents a 12.44% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Bruce T. Pettet acquired 1,000 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was acquired at an average price of $39.89 per share, with a total value of $39,890.00. Following the completion of the transaction, the director directly owned 7,606 shares of the company’s stock, valued at $303,403.34. This trade represents a 15.14% increase in their position. The SEC filing for this purchase provides additional information. Insiders purchased a total of 7,500 shares of company stock worth $288,615 in the last three months. 4.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Sturm, Ruger & Company, Inc.

Several large investors have recently modified their holdings of RGR. AQR Capital Management LLC increased its position in shares of Sturm, Ruger & Company, Inc. by 239.4% during the first quarter. AQR Capital Management LLC now owns 100,834 shares of the company’s stock valued at $3,962,000 after acquiring an additional 71,128 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Sturm, Ruger & Company, Inc. by 4.2% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,777 shares of the company’s stock valued at $384,000 after buying an additional 390 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in shares of Sturm, Ruger & Company, Inc. by 21.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 83,236 shares of the company’s stock valued at $2,988,000 after buying an additional 14,687 shares during the period. Invesco Ltd. lifted its stake in Sturm, Ruger & Company, Inc. by 3.7% during the 2nd quarter. Invesco Ltd. now owns 160,619 shares of the company’s stock worth $5,766,000 after acquiring an additional 5,747 shares in the last quarter. Finally, EverSource Wealth Advisors LLC grew its position in Sturm, Ruger & Company, Inc. by 259.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,568 shares of the company’s stock valued at $56,000 after acquiring an additional 1,132 shares in the last quarter. Institutional investors and hedge funds own 64.00% of the company’s stock.

Sturm, Ruger & Company, Inc. Company Profile

Sturm, Ruger & Company, Inc, founded in 1949 by William B. Ruger and Alexander McCormick Sturm, is a leading American designer and manufacturer of firearms. Headquartered in Newport, New Hampshire, the company has established a reputation for precision engineering and durable products. Its manufacturing footprint includes facilities in Newport and Mayodan, North Carolina, where it maintains a vertically integrated production model spanning metallurgy, machining, and assembly.

The company’s product portfolio encompasses a broad range of small arms, including centerfire and rimfire rifles, shotguns, semi-automatic pistols, revolvers, and accessories.