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

Sturm, Ruger & Company, Inc. (NYSE:RGR) announced its quarterly earnings results on Wednesday. The company reported $0.52 earnings per share for the quarter, beating the consensus estimate of $0.42 by $0.10, FiscalAI reports. The firm had revenue of $158.06 million during the quarter, compared to analyst estimates of $128.54 million. Sturm, Ruger & Company, Inc. had a positive return on equity of 5.96% and a negative net margin of 2.18%.Sturm, Ruger & Company, Inc.’s revenue for the quarter was up 19.3% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.41 EPS.

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. Stock Up 4.2%

Shares of Sturm, Ruger & Company, Inc. stock traded up $1.61 during trading hours on Thursday, reaching $39.41. 27,107 shares of the company’s stock were exchanged, compared to its average volume of 155,100. The business has a fifty day moving average of $38.74 and a two-hundred day moving average of $39.08. The company has a market capitalization of $628.13 million, a P/E ratio of -54.43 and a beta of 0.17. Sturm, Ruger & Company, Inc. has a 1 year low of $28.33 and a 1 year high of $48.21.

Sturm, Ruger & Company, Inc. Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.21 per share. The ex-dividend date of this dividend is Friday, August 14th. This is a positive change from Sturm, Ruger & Company, Inc.’s previous quarterly dividend of $0.11. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.1%. Sturm, Ruger & Company, Inc.’s payout ratio is currently -60.27%.

Insider Transactions at Sturm, Ruger & Company, Inc.

In other Sturm, Ruger & Company, Inc. news, CEO Todd William Seyfert acquired 1,500 shares of the business’s stock in a transaction on Wednesday, May 20th. The stock was bought at an average price of $39.15 per share, for a total transaction of $58,725.00. Following the acquisition, the chief executive officer owned 1,500 shares in the company, valued at approximately $58,725. The trade was a ? increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Bruce T. Pettet bought 1,000 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was acquired at an average cost of $39.89 per share, for a total transaction of $39,890.00. Following the completion of the purchase, the director directly owned 7,606 shares in the company, valued at approximately $303,403.34. This represents a 15.14% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have acquired 7,500 shares of company stock valued at $288,615. Corporate insiders own 4.60% of the company’s stock.

Institutional Investors Weigh In On Sturm, Ruger & Company, Inc.

Several hedge funds and other institutional investors have recently made changes to their positions in RGR. AQR Capital Management LLC lifted its position in 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 worth $3,962,000 after buying an additional 71,128 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Sturm, Ruger & Company, Inc. by 4.2% in the 1st 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. grew its holdings in 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 in the last quarter. Invesco Ltd. increased its stake in shares of Sturm, Ruger & Company, Inc. by 3.7% in 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 during the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in shares of 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 worth $56,000 after acquiring an additional 1,132 shares during the last quarter. Institutional investors and hedge funds own 64.00% of the company’s stock.

Wall Street Analyst Weigh In

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

About Sturm, Ruger & Company, Inc.

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.