Grabagun Digital (NYSE:PEW) Announces Earnings Results, Misses Expectations By $0.01 EPS

Grabagun Digital (NYSE:PEW) announced its earnings results on Thursday. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.09) by ($0.01), FiscalAI reports. The firm had revenue of $21.23 million during the quarter. Grabagun Digital had a negative net margin of 6.42% and a negative return on equity of 6.15%.

Here are the key takeaways from Grabagun Digital’s conference call:

• Third-quarter revenue fell 4.7% year over year to $21.2 million, with firearm unit volume down 14% and non-firearm unit volume down 27%. Adjusted EBITDA loss widened to $2.1 million from $0.9 million, reflecting higher normalized operating costs and public-company investment.
• Gross margin expanded 480 basis points to 14.4%, marking a third consecutive quarter of year-over-year improvement; gross profit rose 44% to $3.1 million. Management attributed the gains to higher selling prices, improved sourcing, and higher-margin PEW Logistics revenue.
• PEW Logistics service revenue reached about $300,000, up 28% sequentially, and the platform added SAR as its fourth manufacturer. GrabAGun also expanded its KelTec relationship to operate the manufacturer’s full e-commerce business, though PEW remains small relative to the core business.
• GrabAGun completed its approximately $34 million all-cash, non-dilutive acquisition of Camfour, adding a wholesale channel alongside its consumer e-commerce and manufacturer logistics businesses. The company expects to apply its technology to improve purchasing and inventory productivity, but detailed financials and integration results are still to come.

Grabagun Digital Price Performance

Shares of NYSE PEW traded down $0.02 during mid-day trading on Thursday, hitting $1.79. The company had a trading volume of 626,128 shares, compared to its average volume of 415,994. The firm has a 50-day simple moving average of $2.03 and a two-hundred day simple moving average of $2.54. The company has a debt-to-equity ratio of 0.07, a current ratio of 9.42 and a quick ratio of 8.61. Grabagun Digital has a one year low of $1.76 and a one year high of $4.29.

Analyst Ratings Changes

Several equities analysts have recently weighed in on PEW shares. Roth Capital decreased their price target on shares of Grabagun Digital from $6.75 to $5.00 and set a “buy” rating for the company in a research note on Monday, August 24th. Weiss Ratings reiterated a “sell (d)” rating on shares of Grabagun Digital in a report on Tuesday, September 8th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $5.00.

Insider Activity

In related news, CFO Justin C. Hilty sold 16,384 shares of the company’s stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $2.25, for a total transaction of $36,864.00. Following the sale, the chief financial officer owned 74,517 shares in the company, valued at approximately $167,663.25. This represents a 18.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 22,549 shares of company stock valued at $48,269 over the last 90 days. 27.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of PEW. SkyView Investment Advisors LLC raised its stake in shares of Grabagun Digital by 10.0% during the 2nd quarter. SkyView Investment Advisors LLC now owns 100,086 shares of the company’s stock worth $228,000 after purchasing an additional 9,100 shares in the last quarter. Engineers Gate Manager LP boosted its holdings in shares of Grabagun Digital by 62.1% in the 2nd quarter. Engineers Gate Manager LP now owns 37,274 shares of the company’s stock valued at $85,000 after buying an additional 14,277 shares during the last quarter. Finally, Renaissance Technologies LLC bought a new position in shares of Grabagun Digital in the first quarter valued at $135,000. 4.80% of the stock is owned by institutional investors and hedge funds.

About Grabagun Digital

GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.